OCBC Securities offers tiered interest rates for share financing
It is the first brokerage in Singapore to offer tiered interest rates for financing purchase of securities across seven global exchanges.
Through OCBC Securities Private Limited’s new feature, known as the Quality-Priced Loan, customers can lower the interest rates levied on their SGD loans when higher quality securities are charged as collaterals to secure their OCBC Share Financing facilities.
To illustrate, OCBC Securities explained, “The highest quality securities will be charged an interest rate of only 3.5% p.a. on a SGD loan, while small cap stocks will be charged an interest rate of between 6.5% and 7.5% p.a. By reducing the interest charged on their loans, customers can lower their borrowing costs, hence enhancing their potential investment returns.”
New OCBC Share Financing accounts opened has increased by more than 50% month-on-month since the launch of the new feature.