What is the minimum I can borrow from Public Bank?
You must request for a minimum of RM100,000 to use the Public Bank Share Margin Financing and you need to maintain a margin loan ratio of 60% in your account.
The bank will warn you of a margin call if you exceed the 70% margin on your borrowings.
What are the fees and charges involved?
There is a Stamp Duty fee of 0.5% of the approved credit limit which will be fully borne by you.
Public Bank does not charge documentation fee and roll-over fee, however, you need to pay RM10 and RM53, both subject to 6% GST, for account opening and processing of your margin respectively.
What kind of collateral will be accepted?
There are three types of collateral that are acceptable by the bank:
Like many things, the credit limit on your collateral can be negotiated with the bank.
Am I allowed to appoint my own remisier?
There will be no need for a remisier, as you can carry out your trading activities straight through Public Bank representatives. For added convenience, you can even handle your trading online via mobile, using the new Public Bank Sharelink mobile application for both Android and iOS.
Can I withdraw cash from the margin account?
Yes, you can. The withdrawal limit is up to 60% of your borrowings in the share margin account, to avoid meeting your margin call.
What documents must I bring along?
You will need the following to apply for the Public Bank Share Margin Financing:
- Copy of NRIC or Passport
- Latest 3-months payslip; and/or latest Form J
- Latest 3-months bank statement