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Investment > Margin Lending |
Margin Lending
To find out more about Bendigo Bank, click here to access our Financial Services Guide (FSG). You must review the FSG before accessing information on this website.
Margin Lending in Managed Funds
Margin Lending enables you to borrow to invest in a range of shares and units in managed funds.
See Also: Approved Securities Lists - Shares, Managed Funds & Investment Platforms
| Account Details |
| Interest Rate |
Customers have the option of choosing a variable interest rate or, if the facility is fully drawn, of pre-paying their interest in advance at a set rate for either 6 or 12 months. |
| Interest Calculated |
Daily on the outstanding balance |
| Interest Debited |
Monthly in arrears (Variable only) |
| Credit Interest |
Interest on any credit balances will be paid at Ultimate
Account rates |
| Statements |
Quarterly (bank account transaction histories are available through the Internet at any time).
Position Summary Statements are sent quarterly and may be requested at any time through the Margin Lending Department. |
| Maximum Limit |
Negotiable (depending on creditworthiness) |
| Minimum Limit |
$20,000 |
| Withdrawals |
Other than a purchase contract note generated via an authorised Broker, Customers may apply in writing to the Margin Lending Manager to request a cash advance (withdrawal) for business or investment purposes only. |
| Repayments |
Repayments/Deposits to the account can be made at any time |
| Minimum Transaction |
$1000 |
| Sweep Facility Option |
Customers can elect to have interest and fees debited to another Bendigo Bank account. |
| Debit Card |
Not available |
| Cheque Book |
Not available |
| Investment Diversification
Requirements |
Composition of a Customer’s portfolio must be diversified so that no more than 75% of the extended value of the portfolio comprises Securities from any one entity. |
| Security Types |
Shares and/or Units in Managed Funds (Refer to the Approved Securities List for details of the securities including lending ratios).
Third party security may be accepted with independent legal advice and a third
party guarantee. |
| Other important information related to Margin Lending facilities |
Maximum Borrowing AmountThe Maximum Borrowing Amount (MBA) will fluctuate daily in accordance with the
changes in the market value of each of the Approved Securities held in a Customer's
portfolio. The MBA is the total of the market value of each Approved Security
in the Customer's portfolio, multiplied by the extended value ratio (XTV) the
Bank assigns to each Security.
eg. Current security value of stock A (which is an Approved Security) with
an approved XTV of 60% is $100,000, therefore, current MBA = $60,000.
Should the security value increase to $110,000, the MBA
would be $66,000.
Buffer
To allow for small variations in a fluctuating market, the Bank provides an allowance
(a Buffer) in which a Customer's Loan Account balance may exceed the Maximum
Borrowing Amount. The current Buffer is 5% of the Maximum Borrowing Amount.
A Margin Call will occur if the Loan Account balance is greater than 105% of
the MBA.
Margin Calls
A Margin Call will occur when the Loan Account balance is greater than 105%
of the MBA. Customers are required to return the Loan Account
to a situation where the Loan Account balance is equal to, or less than, the
MBA. Customers can initiate an automatic sweeping facility
from a nominated Bendigo Bank account. A nominated account may be any Bendigo
Personal Statement and Cheque Transaction Account (with or without an overdraft
facility) or a Bendigo Personal Savings Transaction account.
Approved Loan Limit
The Customer will only be able to draw the balance of their Loan Account to
the lesser amount of the Approved Loan Limit or MBA (the
Maximum Loan Limit). In circumstances where the Customer's MBA exceeds their Approved Loan Limit, the Customer may apply to the Bank
for an increase to the Approved Loan Limit. |
| Fees and Charges |
- Establishment Fee*
- Individual applicants: Nil
- Company or trust applicants:
- $200 to cover search fees and ASIC registration fees
- An additional $100 is also payable where a trust is involved.
- Early Repayment Fee - $400 early payment fee may apply where full payment
is received and/or the facility is closed or not drawn down within 60 days
of the commencement date.
* These fees will be refunded if the application is not accepted or does not proceed. |
Interest
| Variable Interest Rate |
| Rate |
| 10.50% pa |
| Fixed Interest Rates |
| Pre-paid Period |
Rate |
| Interest Pre-Paid In Advance for 6 Months |
Please contact Bendigo Margin Lending on 1300 363 812 to obtain a rate. |
| Interest Pre-Paid In Advance for 12 Months |
Please contact Bendigo Margin Lending on 1300 363 812 to obtain a rate. |
| Overlimit Penalty |
An additional 3.00% interest will be charged on the entire balance while the balance is in excess of the credit limit. Overlimit penalty interest is calculated daily and charged monthly in arrears. |
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