Lombard loan
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So that you can flexibly make use of opportunities
Our lombard loan is intended for investors with fluctuating or unforeseen cash requirements. With a lombard loan, you remain flexible without having to sell the assets in your portfolio, and you can continue to conduct transactions. The lombard loan is secured by collateral from your existing portfolio. This loanable value needs to be higher than the amount of the loan you would like to take out.
The VP Bank client portal offers a transparent overview of the current loanable value of your portfolio. You can see the up-to-date utilisation of your loanable value, or the amount remaining, at all times and submit additional credit requests if needed. This ensures you always have an overview and can take action quickly and easily.
Lombard loans offer an array of benefits:
- Quick, easy liquidity
- No need to sell your invested assets
- Appealing interest rates as the risk for the bank is minimised by the collateral of the pledge
- Flexible repayment options for you as a borrower
Mortgageable assets
- All common securities
- Precious metals
- Time deposits
- Fiduciary deposits
- Account balances
Our products at a glance
We offer two forms of lombard loans: fixed interest loans (also known as a fixed advance) and an overdraft facility. With a fixed interest loan, the credit amount is agreed for a set term and a fixed interest rate is levied. Conversely, with an overdraft facility, the client can make flexible use of the credit amount. This is normally subject to higher interest rates.
Fixed advance / fixed interest loan
A fixed interest loan is suitable for investors who have a clearly defined financing requirement over a fixed period of time.
Characteristics
|
Minimum amount |
CHF 100,000 |
|
Interest rate |
Fixed |
|
Interest date |
Individual, and annual in the case of a term of more than one year |
|
Amortisation |
Repayment at the end of the fixed term |
|
Cancellation |
At any time; in the event of cancellation before the fixed interest rate agreement expires, cancellation is only possible against payment of an early redemption penalty |
Advantages
- Jointly designed according to individual needs
- Additional capital in the event of ongoing appreciation in value and earnings potential of the securities
Restrictions
- Locked in during the term
Overdraft facility
The overdraft facility is suitable for investors who need flexible funds or who expect market rates to fall.
Characteristics
|
Interest rate |
Variable, plus a credit commission of 0.250% per quarter |
|
Interest date |
Quarterly |
|
Amortisation |
Possible at any time |
|
Cancellation |
Possible at any time |
Advantages
- Jointly designed according to individual needs
- Additional capital in the event of ongoing appreciation in value and earnings potential of the securities
Restrictions
- The interest rate is subject to market conditions during the term and is not capped