Please note that the following answer only applies to clients of our German broker offering.
Establishing a credit line costs nothing. Interest only accrues on the amount actually borrowed. These are calculated quarterly and are variable. They are based on the 3-month Euribor®* plus 3% p.a. (6.55% p.a. variable borrowing rate, as of September 2024).
On the first business day of each month (reference date), the custodian bank reviews any changes in the 3-month Euribor®*. If the 3-month Euribor®* has changed compared with the reference interest rate published on the previous reporting date, the debit interest rate on the reporting date of the following month will be reduced or increased by the respective change in the reference interest rate. Negative interest is not granted under the loan agreement.
Please note that if the credit line granted is exceeded, interest may be charged for a tolerated overdraft in accordance with the custodian bank's list of prices and services. In addition, the custodian bank may terminate the account and custody account in such a case and demand immediate repayment in full.
Cost example
You hold securities worth €10,000 in the Scalable Broker. The credit line based on these securities is 5,000 €. Of this, you utilise a credit amount of 2,000 € for 3 months.
Credit line: €5,000
Amount of credit used: €2,000
Duration: 90 days (3 months)
Interest calculation method: act/360
Sample variable borrowing rate p.a.: 6.67% (3-month Euribor® + 3%)
Interest rate
(due at end of quarter): €33.35
Total amount owed
(Repayment of loan amount + interest rate ): €2,033.35 € (€2,000.00 + €33.35)
No costs are incurred for setting up a credit limit and arranging the loan from Scalable Capital to the custodian bank. Scalable Capital is remunerated by the custodian bank depending on the interest margin collected by the custodian bank on the loan amounts drawn.
* Note: Euribor® stands for "Euro Interbank Offered Rate" and refers to the average interest rate at which banks in the EU and the UK lend money to each other. The Bundesbank publishes the currently valid value for the 3-month Euribor® here.
On the first business day of each month (reference date), the custodian bank reviews any changes in the 3-month Euribor®*. If the 3-month Euribor®* has changed compared with the reference interest rate published on the previous reporting date, the debit interest rate on the reporting date of the following month will be reduced or increased by the respective change in the reference interest rate. Negative interest is not granted under the loan agreement.
Please note that if the credit line granted is exceeded, interest may be charged for a tolerated overdraft in accordance with the custodian bank's list of prices and services. In addition, the custodian bank may terminate the account and custody account in such a case and demand immediate repayment in full.
Cost example
You hold securities worth €10,000 in the Scalable Broker. The credit line based on these securities is 5,000 €. Of this, you utilise a credit amount of 2,000 € for 3 months.
Credit line: €5,000
Amount of credit used: €2,000
Duration: 90 days (3 months)
Interest calculation method: act/360
Sample variable borrowing rate p.a.: 6.67% (3-month Euribor® + 3%)
Interest rate
(due at end of quarter): €33.35
Total amount owed
(Repayment of loan amount + interest rate ): €2,033.35 € (€2,000.00 + €33.35)
No costs are incurred for setting up a credit limit and arranging the loan from Scalable Capital to the custodian bank. Scalable Capital is remunerated by the custodian bank depending on the interest margin collected by the custodian bank on the loan amounts drawn.
* Note: Euribor® stands for "Euro Interbank Offered Rate" and refers to the average interest rate at which banks in the EU and the UK lend money to each other. The Bundesbank publishes the currently valid value for the 3-month Euribor® here.