Is a loan of securities by one broker to another so as to cover a customer’s short sale.

Features

• - Payment period depends on the kind of products one has i.e. perishable goods have payment period of 6months to a year unlike Non perishable goods that have a payment period of 1 to 2 and a half years

• - Processing period runs from 1 to 2 weeks

• - Attractive interest rates

Requirements

• - Proforma with details of Items to purchase and amounts

• - Letter of request

• - Security

• - Copy of ID or passport

• - Balance sheet for the last 3 years

• - Cash flows

FAQ’s  

1.    Who is legible to a cash credit line?

Companies or business people that are able to provide all the requirements requested by the Bank  

2.    How Is Interest charged?

It is charged on a monthly basis  

3.    When my payment period runs out for the stock loan, can it be renewed?

Yes, it can be renewed as long as you have cleared your previous loan or if your securities are good enough then the Bank can add you an extension to your payment period.