Stock loan financing comes up as one of the best home ownership financing model, purchase of assets like cars financing model as well as for any other business transactions.Unlike other forms of loans where collateral to the lender is given in form of things like title deeds, car log books and other property based security , stock loans require any free trading security as collateral. From three to about seven years, you can repay a stock loan whose collateral is eighty percent of current stock.
Unlike other forms of loans where you need a letter from your employer and also need to ascertain your credit worthiness and income status, stock loans do not require any of these requirements.All you need to do is to fill up the necessary documentation and then wait for five to seven days to get your loan. Regardless of status of being self-employed or employed, you can be eligible for the loan. Penny stocks, mutual funds, foreign stocks and etfs are some of the things that are eligible as forms of collateral.
Persons who do not meet the eighty percent value requirement of their stocks can always top up the remainder with another type of stock or security or even cash. In this loan financial model, borrowers sometimes opt out of the loan deal and as a result, the lender remains with the collateral.Stock loans are non- recourse loans and the borrower is not liable as a person and even their credit worthiness may never be affected.
A non- recourse debt is a type of loan whereby if the borrower defaults, the lender can seize the collateral but cannot call out the borrower for further compensation even where the collateral does not cover the full amount. The stock appreciation, dividend… Read More ...