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Avanza Bank Holding |
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Avanza’s now offers margin lending at 0% interest

Avanza is improving its Super Loan and cutting the lowest interest rate on margin lending to 0%.

Super Loan is a popular product among many of Avanza’s customers who want to buy more securities by using their existing holdings as collateral. Leveraging securities entails a risk, but at the same time provides greater savings flexibility.

“The negative interest rate has given us an opportunity to improve our margin lending terms. Since we borrow from our customers without paying interest, we feel we can lend to them at no interest if the risk is low,” says Rikard Josefson, CEO of Avanza.

The interest rate level for the Super Loan is based on the customer’s loan to value ratio, utilized credit amount, securities and benefit level. The lowest interest rate means that customers with a maximum loan to value ratio of 10 per cent of their portfolio can borrow up to SEK 50,000 at a 0% effective interest rate. In other words, a SEK 50,000 loan requires a SEK 500,000 portfolio of securities eligible for collateral

“With an interest rate of 0%, more customers who borrow against their securities receive an excellent offer and can discover the positive effects that margin lending can have on their savings. Naturally it is important that everyone who leverages their securities also understands that they are taking a risk,” says Rikard Josefson.

“Past performance is no guarantee of future results. An investment in securities can increase or decrease in value and there is no guarantee you will get back the capital you have invested. Margin lending entails significant risk. You are always obligated to repay the loan and interest, regardless of the performance of your securities.”