Swissquote offers its clients to benefit from 0% interest on Lombard loans in CHF
Leading Swiss online bank Swissquote offers its clients to benefit from 0% interest on Lombard loans in CHF until 31st January 2023 and enjoy more liquidity.
The offer is valid for new loans granted between 15th September 2022 and 30th November 2022.
A Lombard loan, also known as Lombard Credit, is a type of secured loan, in which the loan amount is secured by assets, which are called «collaterals». A collateral acts as a protection for the creditor; if borrowers fail to repay their loan, the bank can sell the assets to get its money back. It is similar to the way you use your house as a guarantee for your mortgage.
A Lombard loan enables you to expand your securities portfolio or rapidly take advantage of new opportunities on the market without having to inject new liquidity or sell assets in your portfolio.
Swissquote will typically lend up to, depending on the quality:
- 70% for stocks
- 90% for bonds
- On demand for investment funds and other liquid assets
The main risk of Lombard loans lies in the potential decline of the value of assets used as collateral and therefore be in overdraft situation. To offset a value decline of your collaterals, you could also reduce the outstanding loan by the relevant amount selling a part of your assets.
Swissquote’s Lombard loans are available in CHF/EUR/USD and many other currencies of your choice. You can apply for and sign into your account entirely online from wherever you are. You will just need a minimum of three diversified assets in your portfolio.