The financial flexibility to meet your needs

In today’s financial climate, flexibility is important when you are navigating your finances. With the flexibility to choose what you use the facility for, Standard Chartered’s Secured Wealth Lending Facility allows to you to explore new investment opportunities or increase liquidity for your personal needs.

What is Secured Wealth Lending?

Our Secured 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.

Collateral Type Indicative Loan to Value (LTVs)* Subject to portfolio
concentration caps
Cash Deposit Up to 100% No
Equities Up to 70% Yes
ETFs Up to 80% No
Mutual Funds and Hedge Funds Up to 80% No
Bonds Up to 90% Yes
Structured products Up to 90% Yes
Premium Currency Investments (PCIs) Up to 80% No
Single Premium Life policies Up to 90% of the Day 1 Cash Surrender Value No

* The LTVs above are indicative only and are subject to immediate change by the Bank at its sole discretion.

Your available credit limit under this facility will be determined based on a range of factors such as the type of financial assets you use as a security pegged together with its prevailing market value and the concentration of the financial assets within your portfolio held with the Bank. The credit limit available to a Borrower is subject to the Bank’s internal assessment and valuation, and may be reviewed from time to time.

Loan to Value (LTV) + Security Margin (as defined in our Bank’s Investment Product Terms) = Market Value (100%)

Enjoy the “Power of 8” with Secured Wealth Lending

Unless otherwise stated, our Secured Wealth Lending Facility has no restrictions on the usage of financing. Its versatility allows the potential for increased liquidity benefits for your personal needs.

8 Benefits to Secured Wealth Lending

  1. It can unlock the value of your long term-tenor assets
    (E.g. Structured Deposits, Stocks, Bonds, Time Deposits).
  2. It can aid to capitalise on under-performing assets.
  3. It provides flexibility and has no restrictions on the usage of financing.
    You can utilise your overdraft for both your personal or investment needs.
  4. It provides cost savings as you only need to pay for the portion of the facility you utilise.
  5. It provides attractive lending interest rates.
  6. It can enhance your yields.
  7. It can help grow your portfolio
  8. It can help hedge your risks.

Accepts 8 types of collateral^

  1. Cash Deposits
  2. Time Deposits
  3. Exchange-traded Funds
  4. Stocks
  5. Unit Trusts
  6. Bonds
  7. Structured products
  8. Single Premium Life Policies

Available in 8 credit loan currencies

8 loan currencies are available for borrowing against acceptable collaterals which market value is priced either in the same or a different currency (SGD, USD, HKD, JPY, EUR, GBP, AUD, NZD).

To find out more, get in touch with us or speak to your Relationship Manager today.

^The types of collateral acceptable to the Bank may be reviewed from time to time.

A Secured Wealth Lending example

Here are some scenarios showing how Secured Wealth Lending can aid in your investments to grow your portfolio at a faster pace.

Scenario 1 - Investment without Secured Wealth Lending for illustration purposes only

Let us assume that you have invested S$100,000 into a Unit Trust. The Unit Trust pays an approximate dividend of 4% per annum.

Capital Dividend Capital gain/loss Interest
S$100,000 4% p.a 2% Not applicable
Scenario 1A
Capital gain of 2%
Dividend
4% of $100,000
S$ 4,000
Capital gain
2% of $100,000
S$ 2,000
Annual interest
Not applicable
S$ 0
Net Return S$ 6,000
Scenario 1B
Capital loss of 2%
Dividend
4% of $100,000
S$ 4,000
Capital gain
-2% of $100,000
S$ 2,000
Annual interest
Not applicable
S$ 0
Net Return S$ 2,000


Scenario 2 - Investment with Secured Wealth Lending for illustration purposes only

Let us assume that you have invested S$100,000 into a Unit Trust. The Unit Trust pays an approximate dividend of 4% per annum.

Through Secured Wealth Lending, assuming the invested Unit Trust has a Loan-to-value (LTV) of 70%, a credit facility of S$70,000 can be secured against the investment (at an interest rate of 2.5% per annum for the purpose of illustration).

You can use the credit facility of S$70,000 to invest into the same or into a different investment. Assuming you proceeded to purchase the same Unit Trust that pays an approximate dividend of 4% per annum.

You could have:

  1. S$100,000 of Unit Trust;
  2. S$70,000 of Unit Trust which is expected to pay an approximate annual dividend of 4%.

Subject to market conditions, Secured Wealth Lending may increase your potential gains or magnitude of loss as compared to investing without Secured Wealth Lending, as illustrated in the scenarios below.

Capital Dividend Capital gain/loss Interest
S$100,000 4% p.a 2% 2.5% p.a.
Scenario 2A
Capital gain of 2%
Dividend
4% of $170,000
S$ 6,800
Capital gain
2% of $170,000
S$ 3,400
Annual interest
2.5% of $70,000
S$ 1,750
Net Return S$ 8,450
Scenario 2B
Capital loss of 2%
Dividend
4% of $170,000
S$ 6,800
Capital gain
-2% of $170,000
S$ 3,400
Annual interest
2.5% of $70,000
S$ 1,750
Net Return S$ 1,650

What is Secured Wealth Lending?

Our Secured 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.

Collateral Type Indicative Loan to Value (LTVs)* Subject to portfolio
concentration caps
Cash Deposit Up to 100% No
Equities Up to 70% Yes
ETFs Up to 80% No
Mutual Funds and Hedge Funds Up to 80% No
Bonds Up to 90% Yes
Structured products Up to 90% Yes
Premium Currency Investments (PCIs) Up to 80% No
Single Premium Life policies Up to 90% of the Day 1 Cash Surrender Value No

* The LTVs above are indicative only and are subject to immediate change by the Bank at its sole discretion.

Your available credit limit under this facility will be determined based on a range of factors such as the type of financial assets you use as a security pegged together with its prevailing market value and the concentration of the financial assets within your portfolio held with the Bank. The credit limit available to a Borrower is subject to the Bank’s internal assessment and valuation, and may be reviewed from time to time.

Loan to Value (LTV) + Security Margin (as defined in our Bank’s Investment Product Terms) = Market Value (100%)

Enjoy the “Power of 8” with Secured Wealth Lending

Unless otherwise stated, our Secured Wealth Lending Facility has no restrictions on the usage of financing. Its versatility allows the potential for increased liquidity benefits for your personal needs.

8 Benefits to Secured Wealth Lending

  1. It can unlock the value of your long term-tenor assets
    (E.g. Structured Deposits, Stocks, Bonds, Time Deposits).
  2. It can aid to capitalise on under-performing assets.
  3. It provides flexibility and has no restrictions on the usage of financing.
    You can utilise your overdraft for both your personal or investment needs.
  4. It provides cost savings as you only need to pay for the portion of the facility you utilise.
  5. It provides attractive lending interest rates.
  6. It can enhance your yields.
  7. It can help grow your portfolio
  8. It can help hedge your risks.

Accepts 8 types of collateral^

  1. Cash Deposits
  2. Time Deposits
  3. Exchange-traded Funds
  4. Stocks
  5. Unit Trusts
  6. Bonds
  7. Structured products
  8. Single Premium Life Policies

Available in 8 credit loan currencies

8 loan currencies are available for borrowing against acceptable collaterals which market value is priced either in the same or a different currency (SGD, USD, HKD, JPY, EUR, GBP, AUD, NZD).

To find out more, get in touch with us or speak to your Relationship Manager today.

^The types of collateral acceptable to the Bank may be reviewed from time to time.

A Secured Wealth Lending example

Here are some scenarios showing how Secured Wealth Lending can aid in your investments to grow your portfolio at a faster pace.

Scenario 1 - Investment without Secured Wealth Lending for illustration purposes only

Let us assume that you have invested S$100,000 into a Unit Trust. The Unit Trust pays an approximate dividend of 4% per annum.

Capital Dividend Capital gain/loss Interest
S$100,000 4% p.a 2% Not applicable
Scenario 1A
Capital gain of 2%
Dividend
4% of $100,000
S$ 4,000
Capital gain
2% of $100,000
S$ 2,000
Annual interest
Not applicable
S$ 0
Net Return S$ 6,000
Scenario 1B
Capital loss of 2%
Dividend
4% of $100,000
S$ 4,000
Capital gain
-2% of $100,000
S$ 2,000
Annual interest
Not applicable
S$ 0
Net Return S$ 2,000

Scenario 2 - Investment with Secured Wealth Lending for illustration purposes only

Let us assume that you have invested S$100,000 into a Unit Trust. The Unit Trust pays an approximate dividend of 4% per annum.

Through Secured Wealth Lending, assuming the invested Unit Trust has a Loan-to-value (LTV) of 70%, a credit facility of S$70,000 can be secured against the investment (at an interest rate of 2.5% per annum for the purpose of illustration).

You can use the credit facility of S$70,000 to invest into the same or into a different investment. Assuming you proceeded to purchase the same Unit Trust that pays an approximate dividend of 4% per annum.

You could have:

  1. S$100,000 of Unit Trust;
  2. S$70,000 of Unit Trust which is expected to pay an approximate annual dividend of 4%.

Subject to market conditions, Secured Wealth Lending may increase your potential gains or magnitude of loss as compared to investing without Secured Wealth Lending, as illustrated in the scenarios below.

Capital Dividend Capital gain/loss Interest
S$100,000 4% p.a 2% 2.5% p.a.
Scenario 2A
Capital gain of 2%
Dividend
4% of $170,000
S$ 6,800
Capital gain
2% of $170,000
S$ 3,400
Annual interest
2.5% of $70,000
S$ 1,750
Net Return S$ 8,450
Scenario 2B
Capital loss of 2%
Dividend
4% of $170,000
S$ 6,800
Capital gain
-2% of $170,000
S$ 3,400
Annual interest
2.5% of $70,000
S$ 1,750
Net Return S$ 1,650

Risks of Secured Wealth Lending

Leverage risks

Depending on market conditions, the value of your collateral may fall. You may then be called upon to “top up” your account by substantial amounts or to repay your outstanding credit facilities at short notice. If you fail to do so, 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. It is important to note that Secured Wealth Lending can also magnify investment losses.

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.

A wealth lending settlement account(s) will be opened for you when your wealth lending facility is approved. Please refer to the important information below for information on the Singapore deposit insurance scheme relating to the deposits in your wealth lending settlement account(s):

Deposit Insurance Scheme

Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$50,000 in aggregate per depositor per Scheme member by law. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.

Disclaimer

Standard Chartered Bank (Singapore) Limited (“SCBSL”) is a subsidiary of Standard Chartered Bank, which is licensed to conduct banking business under the Singapore Banking Act, Chapter 19, and Standard Chartered Bank is a foreign company registered in Singapore under the Companies Act, Chapter 50. Investment products and foreign currency deposits are excluded from the coverage of Singapore’s Deposit Insurance And Policy Owners’ Protection Schemes Act 2011. The contents in this website are for general information only and does not constitute an offer, recommendation, solicitation to buy or sell any products or services such as securities, regulated investment agreement or collective investment scheme, amongst others. SCBSL will not accept any responsibility or liability of any kind, with respect to the accuracy or completeness of the information herein. The contents in this website are for general evaluation only and has not been prepared to be suitable for any particular person or class of persons. SCBSL makes no representation or warranty of any kind, express, implied or statutory regarding this document or any information contained or referred to herein.

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