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MARGIN FUNDING (MF)
Why Margin Funding (MF)?
Financing for investments in shares against the collaterals like Shares, cash, Warehouse Receipts, Mutual Fund Units, ETFs, etc.
Margin Trade Funding offers customers the opportunity to invest/leverage/trade in equity shares at a pre-defined margin. Margin Trade Funding essentially enables the customer to take a larger share of the equity market to a level that goes above his resources at hand. Thus, it is a mechanism that allows trading with borrowed funds or securities. It permits the customer to pay just a part of the total scrip purchase price, while Hedge Finance will provide a loan to account for the balance amount. However, the loan amount and scrip purchase is subject to the quality of the securities owned by the customer.
If margin is assumed at 50%:
- Client pays his margin in cash – if client purchases shares worth Rs. 100, he has to pay only Rs. 50, rest Rs. 50 will be paid by Hedge Finance
- Client gives shares worth Rs. 50 as margin; he can buy Rs. 50 more worth of shares without paying any cash.
Margin in Cash
|Client Margin in Cash Rs. (A)||Funding by Hedge Finance Rs. (B)||Total Purchase Rs. (A) + (B)||Value of Total Stocks as at end of day Rs. (A) + (B)||End of day Ledger debit of Client Rs.|
Margin in Stock
|Client Margin in Stock Rs. (A)||Funding by Hedge Finance Rs. (B)||Total Purchase Rs. (B)||Value of Total Stocks as at end of day Rs. (A) + (B)||End of day Ledger debit of Client Rs.|
Features of Margin Trade Funding
- Collateral: Securities as per list of approved shares
- Tenure: Up to 1 year
- Minimum loan amount : Rs 1 Lakhs
- Loan Margin: 50% and above
LOAN AGAINST SECURITIES
Loan against shares is an ideal way to to get liquidity with out actually liquidating them. It helps to keep carefully to built portfolio intact and get the benefit of getting cash against it for any purpose.
Loan against Securities (LAS) is getting instant liquidity from your investment without selling them. All you have to do is pledge your securities in favour of HEDGE FINANCE Limited, This enables you to enjoy all corporate benefits accrued on your securities and still avail loan against them. No EMI or prepayment charges applicable. Interest will be charged only on the actual amount and that too for the time it is utilized.
|Tenure||Maximum of up to 12 Months.|
|Security||As per Approved list of securities.|
|Loan Amount||Minimum of 1 /- Lac and Maxi 5 crore.|
|Loan to Value||Loan to value of upto 65 % of your shares ( listed and approved equity shares )|
|Interest||Interest is calculated on daily outstanding balance and debited to your loan account at the end of every month.|
- Pay Interest charged only on outstanding amount and only for utilized amount
- Interest is calculated on the daily outstanding balance and debited to your account at the end of every month
- Competitive interest rates
- Enjoy all corporate benefits like bonus, dividends etc accrued on your securities
- Simple and Quick loan processing
- Exhaustive list of approved securities
IPO (Initial Public Offer) investment is one of the most rewarding options available for investors. You can choose to buy shares directly from the companies (by participating in the IPO) or from the secondary market, but the former will fetch you securities at a cheaper rate. Once you are allotted some or all of the shares you applied for, the shares are credited to your demat account. Once listed, you can sell the shares to make a profit. If you are not allotted any shares, your invested money is returned within a period of 3 days. With the stock lying in the DP Account as margin, investors can avail the finance and participate in the bidding for IPO. For IPO financing, investors just need to keep the margin stock in their DP account. This facility is only available for investors who have Margin Financing account with Hedge Finance and bank account with our partner banks. This facility will help investors to participate in IPO without exiting their stocks which are holding in their DP. FEATURES: Loan available to retail investors. No need to bring additional cash for IPO bidding. Only keep margin mount a s stock in their DP account. No Hidden Charges One time documentation process for all upcoming issues. Tenure: 10 to 15 days Minimum loan amount: Per lot Maximum Loan amount: Rs. 200000/- Charges: Rs. 200/- per lot All the IPO documentation is done by Hedge Finance itself.
LOAN AGAINST PROPERTIES
Loan against property are secured-term-loans , secured by the mortgage of a residential or commercial property. The end-use of this loan should be towards any declared legal purpose. The various types of LAPs are as follows:
- Loan for personal /educational/business needs against existing property
- Loan for acquisition of commercial property
- Loan against future rental receivable
- Loans available from 5 lakh up to 5 crore
- Simple documentation
- Fast processing
- Easy repayment options
- Loan tenure of 12 months to 120 months for properties