Investment financing is a revolving overdraft facility that is secured by assets pledged to the Bank. The overdraft limit granted is dependent on the type of assets pledged and will be subject to the Bank's approval.
Maximise your financial flexibility with our investment financing facility now. You can maintain your existing investment portfolio for long-term capital appreciation without having to worry about cashflow for your short-term financial needs.
Features & benefits
- Extra value without extra fees
Interest is calculated only on the amount of funds utilised on a daily balance basis.
Loan facility is available in major currencies.
There is no minimum drawdown amount and no service fee.
You have control over repayments - no minimum monthly repayment is required.
You have the ability to increase or reduce limits with ease.
- Ability to withdraw funds without selling existing investmentsCustomer with existing investments may require additional funds due to unforeseen expenses or would like to make additional investments. His options are (i) use cash, (ii) use the sales proceeds from existing investments and (iii) use the loan proceeds from Investment Financing without having to sell any existing investment.
- Attractive interest ratesEnjoy interest rate from as low as 3% p.a.1
- Flexibility in managing short-term liquidity needs
Investment Financing is a revolving overdraft facility that is secured by investments like Bonds, Structured Products, Unit Trusts or Equities held with the Bank.
The investment financing limit is granted based on the type of Investments charged and the applicable Maximum Advance Ratio.
Customers only incur interest on the amount utilised and are able to access overdraft funds through cheque, ATM and other banking channels.
- No minimum income requirementOverdraft limit is granted based on the assets pledged.
- Flexible repaymentNo minimum monthly repayment required, as long as utilisation is within the overdraft limit.
1Applicable to HSBC Premier customers. Applies to SGD and USD currency loans. Interest rate: VLR* + 1.75%.
VLR refers to the Bank's Variable Lending Rate for SGD or USD on a daily reset basis, as determined by the Bank and takes into consideration various factors including, but not limited to costs of borrowing, internal business costs and market conditions. For promotional pricing, if any, call your Relationship Manager now.
Maximum Advance Ratio
Maximum Advance Ratio is the maximum percentage of the value of an security for which Bank is willing to extend Investment Financing. Actual Maximum Advance Ratio to be granted for the facility is subject to the Bank's approval.
Time Deposit (local currency)
Maximum Advance Ratio: 100% (HSBC Premier customers)
Time Deposit (foreign currency)
Maximum Advance Ratio: 90%
Maximum Advance Ratio: 70% (Funds under risk rating 1)
Maximum Advance Ratio: 60% (Funds under risk rating 2 or 3)
Maximum Advance Ratio: 50% (Funds under risk rating 4 or 5)
Notes, Bonds, and Structured Deposits2
Maximum Advance Ratio: 60% (Funds under risk rating 1 to 4)
Maximum Advance Ratio: 30% (Funds under risk rating 5)
Maximum Advance Ratio: 50%
Learn more about Investment Financing
Contact us by phone
Contact your Relationship Manager directly.
Visit your nearest branch
The securities in your Investment Financing account is used as collateral for the loan to you. A decline in the value or a reduction in the Maximum Advance Ratio of such charged securities may result in your outstanding balance exceeding the overdraft limit and as a result the Bank can take any of the following actions:
- Seek additional funds from you or
- Charge additional eligible securities or
- Proceed to sell securities, in order to maintain the applicable margin ratio.
It is important to note, that if the Bank proceeds to force sell any securities in your account, it is done immediately without prior notice to or consent from you.
Things to note
Deposit Insurance Scheme
Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to SGD75,000 in aggregate per depositor per Scheme member by law. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.
This web site is for information only and should not be construed as an offer, solicitation or recommendation of any product or service. Further, the information contained on this web site is intended for Singapore residents only and should not be construed as an offer, solicitation or recommendation of any product or service in any jurisdiction where such activities would be unlawful under the laws of such jurisdiction, in particular the United States of America and Canada.
Frequently asked questions
Is there a minimum repayment amount that I have to pay each month? When is the due date?
How can I make payment to my investment financing account?
What is the leverage risk in Investment Financing?
How do I cancel my Investment Facing facility account?
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