Interest Only Stock Loans | Stock Loans | JG Wealth Fund
Interest Only Stock Loans and Financial Planning
Taking out interest only stock loans can be an effective method of managing a borrower's long and short term financial needs. These loans can provide the type of financial flexibility that is necessary in the modern economic environment. By engaging in this form of securities lending, JG Wealth works to assist qualified borrowers gain the best value possible from their securities lending activities.
The advantages of an interest only stock loan consist of the following benefits:
- Stock finance involving this type of loan can have very high returns, up to 50-70%.
- The interest rates are quite low, ranging from 3% to 5%.
- An unsecured stock loan is based on the value of the stock, rather than real property held by the borrower.
- The principal is only due at the maturation of the loan, and the loan can be extended if the borrower so desires.
Beyond these factors, an interest only stock loan provides the borrower with a great deal of flexibility. As a non recourse stock loan, the borrower is not liable for anything beyond the value of the stocks pledged as collateral, and thus may, should the stocks decline in value, choose to default on the loan. This will have no impact on the borrower's credit rating, allowing the borrower to base his or her decision solely on the value of the unsecured stock loan.
In addition, unsecured stock loans and similar stock finance instruments involve very little in the way of documentation requirements. The borrower does not have to show proof of income, or submit to a credit check. With many individuals currently suffering economic hardship through no fault of their own, this spares them the potential humiliation of a more invasive loan process.
Stock lending involving interest only loans can be a tremendously powerful and beneficial tool for the borrower, whether private individual or company that faces a sudden need for short term funds. A non recourse stock loan provides further security to the borrower, as the stock loans are handled in a way that allows for the maximum economic flexibility.
JG Wealth's interest only stock lending programs are an example of the company's dedication to providing the best service possible for borrowers of every size and type. Securities lending and the provision of unsecured stock loans can help provide for the long term financial security clients working with JG Wealth.
