"Wealth Portfolio Financing" Overdraft Facility Service
For the "Key Facts Statement (KFS) for Overdraft Facility", please click here.
Privilege．Flexible．Ready-for-use funds
You can enjoy our "Wealth Portfolio Financing" Overdraft Facility Service by pledging designated time deposits1, Fund, Bond and securities1 in BOCHK to obtain an overdraft limit. You can convert assets into liquid funds for greater financial flexibility.
6 Advantages of "Wealth Portfolio Financing" Overdraft Facility Service
- Simple application procedures
No other income proving documents are required, you can apply this service via branches, mobile banking and RM Chat
- Preferential interest rate
Annual interest rate is as low as Prime Rate2+1%
- High revolving credit limit, no interest on the un-used limit
Provide up to HK$30 million revolving credit limit which will be adjusted daily according to the market value of the pledged assets3. You can repay and withdraw the credit limit at anytime with no minimum monthly repayment amount and repayment period required
- Leveraging the asset value and take advantage of your overall wealth
Make the most out of your total assets by having additional ready to use cash available to finance your lifestyle spending or any short-term liquidity needs. Credit limit is up to 100% of the pledged assets.Eligible Asset type Loan ratio (% of asset market value)* HKD time deposit 100% USD time deposit 95% CNY time deposit 90% Foreign currency time deposit Up to 80% Securities (Eligible list for Secured Overdraft Facility Service) Up to 60% Bonds Up to 95% Funds Up to 70% *The bank may amend the above list of “Eligible assets and loan ratio” from time to time with immediate effect. - Convenient cash withdrawal
Withdraw cash via current account or at ATMs and branches of BOCHK throughout Hong Kong
- Standby funds at any time without any fee
Handling, renewal or withdrawal fee is waived for both new application and renewal of the service
Case Sharing (for reference only)
Ms. Chan requires an additional fund for her kid to study abroad, but most of her assets have been used for time deposit or investment. By applying the "Wealth Portfolio Financing" Overdraft Facility Service, Ms. Chan can get extra liquidity from her asset holdings.
- Available credit limit calculation:
| Asset type
|
Market Value (HKD)
(as of Aug 15, 2023) |
Loan ratio
|
Available credit limit (HKD)
|
|---|---|---|---|
HKD Time Deposit |
$1,000,000 |
100% |
$1,000,000 |
Securities |
$ 800,000 |
60% |
$ 480,000 |
Funds |
$ 600,000 |
70% |
$ 420,000 |
Total |
$2,400,000 |
$1,900,000 |
Based on the market value of the above assets on August 15, 2023, the upper available credit limit that Ms. Chen can apply for is HK$1,900,000.
- The credit limit is automatically adjusted according to the daily asset market value, and asset fluctuations may lead to Overlimit Interest Rate:
Assume that Ms. Chan successfully applied for and used the HK$1,500,000 overdraft facility, and the latest market value of her assets is as follows：
| Asset type
|
Market Value (HKD)
(as of Aug 16, 2023) |
Loan ratio
|
Available credit limit (HKD)
|
|---|---|---|---|
HKD Time Deposit |
$1,000,000 |
100% |
$1,000,000 |
Securities |
$ 400,000 |
60% |
$ 240,000 |
Funds |
$ 300,000 |
70% |
$ 210,000 |
Total |
$1,700,000 |
$1,450,000 |
Asset fluctuations caused an excess of HK$50,000 in Ms. Chan's account. Ms. Chan must make up the difference on the same day, otherwise Overlimit Interest Rate will be incurred.。
"Wealth Portfolio Financing" Overdraft Facility service is applicable for Private Wealth and Wealth Management customers. Please contact your relationship manager to experience the advantages of "Wealth Portfolio Financing" Overdraft Facility service!
Reminder: To borrow or not to borrow? Borrow only if you can repay!
Remarks:
- Designated currencies of time deposits include HKD, USD, AUD, CAD, CHF, DKK, EUR, GBP, JPY, NZD,SEK and CNY. Designated securities means shares, stocks, funds, bonds or notes listed under the Eligible list of securities for "Wealth Portfolio Financing" Overdraft Facility Service issued by the Bank. For details of the respective loan ratio of the designated time deposits and securities, please contact your relationship manager.
- Prime rate is the Hong Kong Dollar Prime Rate quoted by the Bank, which is subject to the rate as quoted by the Bank from time to time.
- The "Wealth Portfolio Financing" overdraft facility limit equals the secured asset value multiplied by the loan ratio. The maximum limit is HK$30 million, which will be adjusted according to individual customer’s situation.
- The Bank reserves the right to change the types of secured assets, loan ratio, overdraft limit and overdraft interest rate at its absolute discretion without prior notice.
- Fluctuation of foreign exchange rates, values of securities, and fund switching may trigger overdrawn, of which Overlimit Interest Rate shall be charged according to the terms and conditions.
- Unless otherwise specified, the bank may conduct future correspondence and/ or notifications related to this service in a non-paper based format.
- If any of the aforesaid day is under severe weather condition (i.e. Typhoon Signal No. 8 or above is hoisted, a Black Rainstorm Warning is issued by the HK Observatory or Extreme Conditions is announced by the HKSAR Government), the new loan application may have chance to drawdown on the next Business day without severe weather condition.
- The Bank reserves the right to approve and reject the loan application at its absolute discretion.
General Terms and Conditions:
- The above information of "Wealth Portfolio Financing" Overdraft Facility service is for reference only. For details of the service and its terms and conditions, please refer to the application form or contact your relationship manager.
- The Bank has the right to decide whether to accept application based on the credit reports of the customers and the information provided by the customers, and reject application without assigning any reason. The Bank has the right to request customers to provide other documents for the purpose of further approval if necessary.
- Credit facilities are subject to the terms and conditions of the facility letter signed by the customers and the Bank.
- In case of any discrepancy between the Chinese and English versions, the Chinese version shall prevail.
