Our scriptfin facility gives you simple access to a loan when you want to leverage your equity portfolio.
You can take out a loan through our scriptfin facility by using your share portfolio as collateral. You can withdraw this amount as cash, or can reinvest it into any of your trading or investment accounts. This means that you can add to your portfolio without adding cash to your account. You also avoid the usual administrative requirements of applying for a loan from a bank.
Please note that this facility is only available to South African resident, and applicants are subject to a credit check. Once approved, the Borrower's account status will be changed to a loan account to allow access to the facility. This should take approximately two business days.
Using our scriptfin facility
- To qualify for the facility, your portfolio must have at least R100 000 in Top 100 holdings according to FTSE/JSE Top 40 & Mid cap indices, which can be split among various instruments and cash. In addition to this requirement, the borrower must qualify for a minimum initial loan amount of R25 000 based on the holdings in the share trading account.
- The only equity investments that will count towards this total are those that fall within the Top 100 shares on the JSE, as measured by market capitalisation.
- Interest will be charged to your equity account monthly, at the prime lending rate. This means that interest can be offset by capital growth in your portfolio.
- There is no stipulated repayment period.
- The maximum loan facility the Borrower may qualify for will depend on how well the share portfolio of the Borrower is diversified at the time application is made for the loan facility:
SHARE PORTFOLIO DIVERSIFICATION
Portfolio consisting of FTSE/JSE Top 40 shares
Up to 30% credit available
Portfolio consisting of Top 41-100 shares (FTSE/JSE Midcap Index)
Up to 25% credit available
Portfolio consisting of non-Top 100 shares
- The loan value is calculated based on the value of the relevant shares at that point in time, i.e. the initiation value at the time when the Borrower applies for the loan facility. The loan value is a variable amount as the share portfolio used as collateral by the Borrower can increase or decrease in value at any time due to market movement, client trade activity and withdrawals.
- The loan to value ratios for the Top 40 and Top 100 are set out in the table above. However, should you have a specific Top 100 (FTSE/JSE Top 40 & Midcap Indices) share that makes up 25% or more of your holdings, your loan amount will be reduced further in order to reduce concentration risk. This amount will be calculated by PSG according to a predetermined formula which is available upon request.
You will be liable for covering margin requirements if the value of your holdings falls below the required amount. You will have the opportunity to fulfil the margin call. If you fail to do so, we will sell shares in your portfolio to the value of the margin requirement, starting with those that offer the highest liquidity. Margin calls take place on 12h00 on all trading days.
List of available scriptfin shares
View the list of available scriptfin shares.
Get the Scriptfin Loan Facility Key Information Document.
Find information on how to invest and to apply for a scriptfin facility or visit our FAQ page.
Look to get started? register for an online trading account.