[quote=My 2 cents]And then what if you don't get all the rights applied for? Do you return the excess cash to the bank?[/quote]Yes. The bank has a 'pledge' form that essentially means that any funds 'paid' for shares not allocated to me are 'refunded'.

An alternate is getting a Letter of Guarantee which means the Bank will only pay for what you are allocated i.e. no need for refunds BUT there is a charge for the LoG.

[quote=VituVingiSana][quote=The Merchant][quote=VituVingiSana][quote=The Merchant][quote=My 2 cents]@VVS please let your many followers know that borrowing to purchase shares should come with a caveat. [/quote]
Is he borrowing to purchase shares or using shares to borrow? I think I understood it as the latter.
@vvs...go for I&M bank. They never surprise you.
[/quote]
Both. Borrowing against existing shares to buy 'new' shares.

*** There are huge risks to borrowing.[/quote]
Wow! Leveraged trading right there. Your strategy must be superbly sound. Admirable!=d> [/quote]No. I am 'trying out' banks to be ready for KPLC's large Rights Offer. The 40% Rights + Purchased Rights &/or Additional Shares means I need cash!
[I am not selling any of my current shares. That might have been a better idea but I am conservative & also think D&B will flip the Rights to a few Institutions leaving Retail Investors with very few shares/Rights]
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am also grappling with the same problem, where to get the cash to exercise my rights! The fact that most of the counters r now flat doesnt help much when you think of selling them to creat liquidity!

Why not just go for a simple unsecured seeing as the interest rates you mention from the banks above are not that low despite having shares secured. Stancharts unsecured goes upto 4million, 60months, 16.25%

I suggest to take O.D. Facilities instead of loan. If you take loan then you have to pay fixed instalment every month. If you wish to pay earlier then they will charge you penalty. i am negotiating with bank & they agree to give me O.D. facility against CDSC account @ rate of interest 14.75%, commitment fee 1%, Pledging of share at CDS Kshs 1000. period 1 year.

If you go to small bank like Giro Bank, Prime Bank, Imperial Bank, ABC bank. they will give you OD facility against your CDS account. They will charge only 1000 for pledging of share. 50 to 60% LTV. you can negotiate with them.