How much can I borrow from Hong Leong Share Margin Financing?
The minimum loan amount is RM50,000, which can be increased to as much as RM5 million per customer. The bank will be prepared to finance your investments up to a margin of 60%.
In the event that you exceed the approved margin of financing by 5%, you will need to re-balance your account back to the approved ratio within 48 hours. Otherwise, a margin call will be initiated.
What fees do I have to pay?
To open an account you'll need to pay RM10.60 as well as RM89.90 in upfront fees including GST.
Do I get to choose my own remisier?
Yes, but only from the list of panel broking firms approved by Hong Leong Bank. You are free to use your present remisier as long as their firm is on the bank's panel of stockbrokers.
What can I use as collateral?
Hong Leong accepts collateral in the form of:
- cash/fixed deposits pledged to Hong Leong Bank
- Acceptable quoted shares on Bursa Malaysia
- Unit Trust funds managed by HLGUT
You can leverage cash and fixed deposits up to a credit limit of 2.5 times, whereas shares can only be given a leverage of 1.5 times market value.
Do I have any recurring obligations?
There are no fixed repayments as long as your margin does not breach the approved margin limit. But like any other loan you will need to pay interest charges on your borrowing.
Can I withdraw money from the SMF account?
Yes you can, up to 60% of the remaining balance in your account may be withdrawn. Your shares will act as collateral in the event that you cannot pay back the money.
I am a foreigner living in Malaysia, can I open a share margin account?
Naturally, Malaysians and permanent residents will be given priority. Singaporean nationals are also welcome to apply, but you would need to comply with Bank Negara Malaysia's Foreign Rules and Regulations.
However, your total credit obligations with other local banks should not exceed a total sum of RM10 million.
How can I be eligible?
Generally, the approval is based on an your assets, repayment capabilities and history, and the type of collateral to be pledged.
Here are the documents you need:
- SMF Application Form
- Photocopy of NRIC
- Latest Form BE / Income Tax Assessment
- Salary slips (3 months)
- Banks statements (3 months)
- CDS Statement (if initial collateral is quoted shares)
- Unit Trust Statement (if initial collateral is unit trusts)
Corporate (Investment Holding Company only):
- SMF Application Form
- Business Registration
- Memorandum and Articles
- Form 9, 24, 44 and 49 and Annual Returns
- Audited Financial Statement
- Bank Statements (3 months)
- Company Profile
- Company Resolution (Stating the authorized personnel to trade on behalf of the company)