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Secured overdraft facility for greater financial flexibility

Ke secured wealth

Secured overdraft facility for greater financial flexibility

The financial flexibility to meet your needs

Flexibility is important when you are navigating your finances. Standard Chartered’s Wealth Lending Facility allows you to explore new investment opportunities or increase liquidity for your personal needs.

What is Wealth Lending?

Overview of Wealth Lending Overdraft Facility

What is Leverage Lending?

Overview of Leverage Lending

Risks of Wealth Lending

Types of Risk

Leverage Risk

Depending on market conditions, the value of your collateral may fall. You may then be called upon to “top up” your account or to repay your outstanding credit facilities at short notice. It is a requirement that the value of the collateral is maintained at the required level. The Bank may have to liquidate your collateral at a loss to repay any amount outstanding and you would be liable for any amounts still owing subsequently.

Interest Rate Risks

The interest rate of your credit facility may increase, resulting in a higher interest payment amount for the facility.

Foreign Exchange Risks

Your credit facilities may be subject to additional foreign exchange risks if they are taken in a different currency other than that of your collateral. If the exchange rate moves against you, the repayment amount of the facilities may be affected.

Change in credit Loan to Value (LTV) ratio

LTV ratios are subject to periodic review and may change within a short period of time. When the LTV of your collateral is reduced, you will need to have sufficient liquidity to repay your outstanding credit loan or pledge additional collateral as security for the credit facility.

Leverage Risk

Depending on market conditions, the value of your collateral may fall. You may then be called upon to “top up” your account or to repay your outstanding credit facilities at short notice. It is a requirement that the value of the collateral is maintained at the required level. The Bank may have to liquidate your collateral at a loss to repay any amount outstanding and you would be liable for any amounts still owing subsequently.

Interest Rate Risks

The interest rate of your credit facility may increase, resulting in a higher interest payment amount for the facility.

Foreign Exchange Risks

Your credit facilities may be subject to additional foreign exchange risks if they are taken in a different currency other than that of your collateral. If the exchange rate moves against you, the repayment amount of the facilities may be affected.

Change in credit Loan to Value (LTV) ratio

LTV ratios are subject to periodic review and may change within a short period of time. When the LTV of your collateral is reduced, you will need to have sufficient liquidity to repay your outstanding credit loan or pledge additional collateral as security for the credit facility.

FAQs

  • Our Wealth Lending Facility is an overdraft facility obtained against financial assets held with, and acceptable to the Bank up to a percentage of their prevailing market value.

  • This is the risk that the bond issuer or borrower is unable to meet the coupon or principal payments on any outstanding bonds or debt (not just the bonds you may be holding) when they fall due (for example, due to bankruptcy or insolvency), and go into default.

  • Interest is calculated based on utilised loan amount on a daily basis.

  • Choose to borrow in multiple currencies, such as USD, GBP, EUR and KES.

  • The available credit limit under this facility will be determined based on a range of factors. Such as but not limited to:

    • Type of financial asset used as a security.
    • Prevailing market value.
    • Concentration of the financial assets within your portfolio held in the bank.
  • You can apply for a secured Wealth lending facility by contacting your Relationship Manager or calling our 24-hour Priority Client Centre on 020 3293939, 0703 093 939, 0732 143 939.

    • Cash Deposits
    • Mutual Funds and Bonds with eligible Loan to Value (LTV)
  • An overdraft is a limit that is established in a customer’s current account allowing them to withdraw money when your account balance reaches zero up to the set overdraft limit.

    This facility is used for short-term purposes and is either secured by eligible collateral or unsecured. The interest amount due is calculated daily on the outstanding overdraft based on the daily interest rate.

    • Ability to unlock the value of your existing investments without liquidating
    • Enhance portfolio returns and also hedge risks
    • Improve personal liquidity position with no restrictions on the use of facility
    • Available in a wide range of currencies including Kenya Shillings (KES), US Dollar (USD), British Pound (GBP), and Euro (EUR) at attractive interest rates
    • Tailored to meet your financial needs
    • Flexibility to choose when you wish to repay the facility
  • The SCB All In Rates are:

    • USD 5.300%
    • EUR 5.000%
    • GBP 5.300%
    • KES 11.5%

    Subject to applicable law, Interest may vary from time to time in line with market conditions and or at the sole discretion of the Bank.

  • Leverage Financing is a Secured Wealth Lending facility where your initial capital and the proceeds of the overdraft facility extended to you are channelled towards the purchase of an investment product. Leverage is available upon your application and subject to meeting suitability requirements.

  • Leverage Financing can provide you the potential to grow your wealth at an accelerated pace. This approach, however, involves risks and is subject to market conditions. Taking up a leveraged credit facility to fund an investment entails greater risks than funding the investment outright with your own cash.

  • Should you have any questions please do not hesitate to contact your Relationship Manager or call our 24-hour Priority Client Centre on 020 3293939, 0703 093 939, 0732 143 939.

Terms & Conditions

Disclaimer

Investment Products and Services are distributed by Standard Chartered Investment Services Ltd – a wholly-owned subsidiary of Standard Chartered Bank Kenya Limited, that is licensed by the Capital Markets Authority as a Fund Manager.