Customers who are urgently in need of cash/ liquidity generally sell a portion of their securities. Instead of doing that, Emirates NBD customers can take out a Lending against secured assets facility. This enables them to continue benefiting from the potential return of their investments/ portfolios and create liquidity for their immediate requirements.

"Thanks to a Lending against secured assets facility, you could implement your own cash management strategy and take advantage of investment opportunities that come your way"

A Lending against secured assets facility increases liquidity

If a customer wishes to purchase some real estate or take advantage of an enticing investment opportunity, they will usually take out a mortgage or sell existing investments. However, the Emirates NBD Lending against secured assets facility can be used to boost short-term liquidity or bridge the customer's cash requirements.

With this facility a customer can use their assets like Shares/Equities and Fixed deposits to be pledged and serve as collateral. In return, the Emirates NBD will give the customer a line of credit that can be utilized at any time and will be based on the value of the pledged assets'. The collateral value mainly depends mainly on the type of securities, their quality, and their expected volatility. The currency and the marketability of the deposited assets affect their collateral value, as does diversification across the entire portfolio. The bank sets and regularly reviews the facility-to-value ratio of these assets and communicate these to the customer during the tenure of the facility and as and when required.

PromoCardWithLinks A Lending against secured assets

Ways to use Lending against secured assets facility

"Lending against secured assets facility is versatile and suitable when the expected yield on the assets being pledged, exceeds the cost of credit. This facility is typically taken out when additional liquidity is needed, but no asset is required to be sold.

One example is buying a Apartment Complex / Hotel / Land in Riyadh which cannot be financed using a mortgage. Another case in which it might make sense to take out a Lending against secured assets facility is to buy additional securities in order to increase one's yield or further diversify the existing portfolio."

How can you find out if you’re eligible for A Lending against secured?

Many lenders stipulate a minimum facility amount. This means that the value of your assets will need to be higher than this figure in order for you to qualify for a Lending against secured.

The facility-to-value (LTV) ratio will impact on whether or not you can take out a Lending against secured, and if so, how much you can borrow. Your own personalized LTV will be granted depending on your financial history, the extent of your investment portfolio, and the volatility of your assets.

In most cases, borrowers will also need to ensure that the value of their collateral is higher than their facility amount; this will account for potentially harmful price fluctuations.

The best way to explore your eligibility for a Lending against secured is to contact your relationship manager . We will be able to assess your situation and advise you as to which type of Facility will best meet your needs.

PromoCardWithLinks Lending against secured

Lending against secured are subject to market risk

The benefits of a Lending against secured are obvious. Investors continue to profit from the potential returns on their invested capital and enjoy a favorable interest rate. This type of facility is also highly flexible and adjustable for meeting individual needs in terms of the amount and term. At the same time, investors still maintain control over their securities. As long as the facility is covered, the portfolio can be modified at any time despite the fact that the assets have been pledged.

Nevertheless, the collateral used for a Lending against secured is subject to market risk. If the portfolio loses value or individual investments are rated as riskier than before due to certain events, that will affect the facility-to-value ratio. If that ratio is exceeded, the borrower will have to provide additional collateral or reduce their credit utilization. However, if that is not possible, the bank will be allowed to sell/liquidate the pledged securities in an emergency.

Although the Lending against secured assets facility can represent a cheaper and more convenient way to raise money, it is nevertheless a riskier method of borrowing and professional advice should be sought before committing to such a strategy. The value of the investments used as collateral can rise and fall. Where the value falls substantially, you could potentially owe the lender more than the collateral value of the investments.

"In a world that is constantly changing, Emirates NBD offers stability and continuity of your liquidity requirements"

What are people asking?

A customer having assets like Shares or Fixed Deposits can pledge these assets to the bank. The bank will then lend money up to 95% of the value of the security to the customer.

This Facility is an Islamic Tawarruq based facility and is Shariah Compliant. The customer can pledge the securities in which he/she has invested as collateral against the financing amount.

With a Lending against secured assets facility, customer can instantly raise funds to meet customer personal needs, to meet short term cash flow requirements, enhance the return on their investments or entering new investments.

This is an attractive and highly flexible solution for those who wish to take advantage of a useful leverage effect to access a convenient source of liquidity – and quickly.

The customer will receive additional capital without having to sell the existing securities, which is ideal if the customer wants to continue to take advantage of the increase in value and earning potential of the assets whilst also having the flexibility to explore further investment opportunities outside of the current portfolio.

A customer can get up to 95%* of the actual value of the security pledged by them. The exact amount depends on a couple of factors such as type of securities pledged etc.

A customer can borrow from Emirates NBD against the following securities:

  • Approved Shares/ Equities held by the customer with Emirates NBD Capital.
  • Fixed deposits held by the customer with Emirates NBD.
  • Fixed Deposits held with Emirates NBD Capital.
  • Cash held in either the Customer’s Accounts with SAR or other currencies.

Yes, customers will be able to receive all bonus/dividends on the securities pledged by them.

Individual/Corporate Customers who are resident in KSA.

The minimum facility amount for availing facility is SAR.1 million. There is no specific Maximum facility limit.

Lending against secured assets facility has a tenure of 1 year, however this condition however can be flexible in exceptional cases and the facility can be renewed annually, up to a period of 5 years.

The processing fee for Lending against secured assets facility from bank to bank and is generally around 1 % of the value of facility.

Opening an account with Emirates NBD is mandatory. Emirates NBD requests the customer to start a banking relationship with us so that we will be able to offer Lending against secured assets facility along with a host of other value-added services.

We have a simple and convenient process for applying for this facility. The customer needs to have an account with Emirates NBD and can simply apply for the facility through their relationship manager/ branch.

A customer having assets like Shares or Fixed Deposits can pledge these assets to the bank. The bank will then lend money up to 95% of the value of the security to the customer.

This Facility is an Islamic Tawarruq based facility and is Shariah Compliant. The customer can pledge the securities in which he/she has invested as collateral against the financing amount.

With a Lending against secured assets facility, customer can instantly raise funds to meet customer personal needs, to meet short term cash flow requirements, enhance the return on their investments or entering new investments.

This is an attractive and highly flexible solution for those who wish to take advantage of a useful leverage effect to access a convenient source of liquidity – and quickly.

The customer will receive additional capital without having to sell the existing securities, which is ideal if the customer wants to continue to take advantage of the increase in value and earning potential of the assets whilst also having the flexibility to explore further investment opportunities outside of the current portfolio.

A customer can get up to 95%* of the actual value of the security pledged by them. The exact amount depends on a couple of factors such as type of securities pledged etc.

A customer can borrow from Emirates NBD against the following securities:

  • Approved Shares/ Equities held by the customer with Emirates NBD Capital.
  • Fixed deposits held by the customer with Emirates NBD.
  • Fixed Deposits held with Emirates NBD Capital.
  • Cash held in either the Customer’s Accounts with SAR or other currencies.

Yes, customers will be able to receive all bonus/dividends on the securities pledged by them.

Individual/Corporate Customers who are resident in KSA.

The minimum facility amount for availing facility is SAR.1 million. There is no specific Maximum facility limit.

Lending against secured assets facility has a tenure of 1 year, however this condition however can be flexible in exceptional cases and the facility can be renewed annually, up to a period of 5 years.

The processing fee for Lending against secured assets facility from bank to bank and is generally around 1 % of the value of facility.

Opening an account with Emirates NBD is mandatory. Emirates NBD requests the customer to start a banking relationship with us so that we will be able to offer Lending against secured assets facility along with a host of other value-added services.

We have a simple and convenient process for applying for this facility. The customer needs to have an account with Emirates NBD and can simply apply for the facility through their relationship manager/ branch.
Existing Emirates NBD customers can contact their account relationship managers and request for a Lending against secured assets facility. The relationship manager will check for the list of acceptable securities and provide a tentative amount that the bank can lend. If the customer finds the terms and pricing acceptable the relationship manager will provide additional documentation for the customer to complete and finalize the facility.

This is a facility available only for existing customers having a Current / Savings account with us. Once the account is opened there is a list of documents required for applying this Facility which are as follows:

  • Acceptance of the indicative offer by the customer
  • SIMAH Consent form
  • Copy of the customer passport and National ID/Iquama
  • Confirmation of asset with the bank / Emirates NBD Capital
No, being a special Facility, this can only be applied singly.

There are three main stages:

  • Application: Whereby the customer submits a filled in application with all necessary documents.
  • Sanction: Whereby customer gets an approval for a specific facility amount based on the value of customer Securities and repayment capabilities.
  • Disbursement: Whereby the facility amount is disbursed.
As the account opened is a current account, cheque books and ATM cards are issued for this account.
Yes, this is Facility that can be accessed and checked through Online Banking.
The installment amount due to the bank from the customer, will be debited from the customer current account on due date agreed with the customer.
The Lending against secured assets facility, can be closed on written instructions given by the customer and settlement of any outstanding dues to the bank by contacting their relationship manager.
If for whatever reason customer fail to make the agreed repayments, the bank is entitled to sell customer assets to get their money back.

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