Frequently Asked Questions - Share Margin Financing

Share Margin Financing

Q: Do I have to trade with specific brokerage firms?

A: Yes. Hong Leong Bank Berhad has a list of panel broking firms to select from. You can continue to use your present remisier as long as the stock broking firm that he/she is attached to is on our panel of stockbrokers.

 

Q: How do I qualify for the SMF Loan Application?

A: Hong Leong Bank Berhad will evaluate each loan application based on its merits and demerits. Generally, the approval is based on applicants' personal resources, repayment capabilities, past payment patterns, legislative, collateral to be pledged and Hong Leong Bank Berhad's requirements.

 

Q: What are the collaterals that Hong Leong Bank Berhad accepts?

A: Hong Leong Bank Berhad 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

 

Q: What documents do I need to submit to Hong Leong Bank Berhad?

A: Applicants are required to furnish the following documents:

 

Individual

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 & 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)

 

Q: How long is the approval valid for?

A: Approval is valid for 14 days. However, Hong Leong Bank Berhad reserves the rights to withdraw the loan approval and / or to vary the loan terms and conditions without prior notice.

 

Q: How do I make my monthly payments?

A: There are no fixed repayments as long as your margin does not breach the approved margin limit.

 

Q: Is there any credit limit for SMF application?

A: Yes, the minimum credit limit you may apply is RM50,000 while the maximum is RM5,000,000 per customer.

For enquiries connect with us online or drop by your nearest Hong Leong Bank Branch.