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Stocks as collateral.
Rank: Veteran Joined: 6/23/2014 Posts: 1,652
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Realtreaty wrote:young farmer wrote:Realtreaty wrote:young farmer wrote:Which banks or lenders accept stocks as collateral for loans in kenya. I have tried Equity investment bank but can't hear none of it. @ Farmer......Stock is very near to cash and isn't a fixed asset.They wonder why you want to use csh as a collateral for another cash and may well doubt you if your holding is meagre. They will need a millionaire to do that assuming that he is just hungry for an overdraft which is a very short term loan. Long term loan while you hve poor stocks, none will listen to you. Sell your stock and use that cash,....they say.!!!! You can be a young Millionaire, I think if you hold between 5-10 Millions worthy of shares the bank should work with you. To add salt to injury you hold same bank shares you are trying to get loan from. To me it sounded like bank don't value their stocks(just saying). Seems you met a trainee. One more thing is no longer share certificates that earlier we had to deposit. Cdsc is a bit different and you could privately sell the same shares as there is no way to attach unless the shares are transfered to bank name and account. The bank will give you a letter to take to cdsc.CDSC will then freeze the shares indicated.The banks will only take 50% value of the shares. Hutia Mundu!!
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Wamunyota wrote:Realtreaty wrote:young farmer wrote:Realtreaty wrote:young farmer wrote:Which banks or lenders accept stocks as collateral for loans in kenya. I have tried Equity investment bank but can't hear none of it. @ Farmer......Stock is very near to cash and isn't a fixed asset.They wonder why you want to use csh as a collateral for another cash and may well doubt you if your holding is meagre. They will need a millionaire to do that assuming that he is just hungry for an overdraft which is a very short term loan. Long term loan while you hve poor stocks, none will listen to you. Sell your stock and use that cash,....they say.!!!! You can be a young Millionaire, I think if you hold between 5-10 Millions worthy of shares the bank should work with you. To add salt to injury you hold same bank shares you are trying to get loan from. To me it sounded like bank don't value their stocks(just saying). Seems you met a trainee. One more thing is no longer share certificates that earlier we had to deposit. Cdsc is a bit different and you could privately sell the same shares as there is no way to attach unless the shares are transfered to bank name and account. The bank will give you a letter to take to cdsc.CDSC will then freeze the shares indicated.The banks will only take 50% value of the shares. Word... possunt quia posse videntur
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Rank: Chief Joined: 1/3/2007 Posts: 18,354 Location: Nairobi
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young farmer wrote:Realtreaty wrote:young farmer wrote:Which banks or lenders accept stocks as collateral for loans in kenya. I have tried Equity investment bank but can't hear none of it. @ Farmer......Stock is very near to cash and isn't a fixed asset.They wonder why you want to use csh as a collateral for another cash and may well doubt you if your holding is meagre. They will need a millionaire to do that assuming that he is just hungry for an overdraft which is a very short term loan. Long term loan while you hve poor stocks, none will listen to you. Sell your stock and use that cash,....they say.!!!! You can be a young Millionaire, I think if you hold between 5-10 Millions worthy of shares the bank should work with you. To add salt to injury you hold same bank shares you are trying to get loan from. To me it sounded like bank don't value their stocks(just saying). I believe CBK regulations do not allow one to borrow from a bank using shares of the same bank [or a closely related entity]. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Stocks as collateral.
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