Financial Leverage
Lombard credit allows you to increase your investment capacity without selling your existing assets. You can thus take advantage of additional investment opportunities.
Financial and tax optimization strategy with a fixed rate of 2.95%
Lombard credit is a loan that uses your financial securities as collateral. It's a flexible solution to obtain liquidity without selling your assets, particularly interesting for investors in PEA and ETF.
At Boursobank, Lombard credit is an 'in fine' loan over 5 years. You repay the interest quarterly and the capital at the end of the term or in advance. This loan is secured by pledging your financial assets (in securities and cash) that you hold at Boursobank on your life insurance, securities account or PEA.
You can borrow up to 50% of the value of your financial assets eligible for coverage, between €101,000 and €2,000,000. SRD positions, unlisted securities, and securities held in a PEA-PME are not eligible as collateral.
For example, if you have life insurance of €200,000 and a securities account of €80,000 of which €60,000 is eligible as collateral, your eligible assets represent €260,000. You can therefore borrow €130,000 by pledging €280,000 (your life insurance and your securities account).
Lombard credit allows you to increase your investment capacity without selling your existing assets. You can thus take advantage of additional investment opportunities.
With a fixed rate of 2.95%, Lombard credit offers an arbitrage opportunity. You can reinvest the borrowed amount in ETFs or other investments offering a higher return than the loan rate.
By using Lombard credit instead of selling your assets, you avoid triggering taxable capital gains. This can represent a significant tax advantage, especially within the framework of a PEA.
After a period of 5 years, you can repay the loan and take out a new one. This flexibility allows you to adapt your investment strategy over time.
€0 application fees, pledging fees, and early repayment fees. Flash subscription with immediate and final decision. You only pay interest for 5 years. No proof of use required.
Pledging is the act that makes the acceptance of your Lombard credit possible, in exchange for the assets brought as collateral. At Boursobank, you must provide a pledge equal to 200% of your loan amount.
Attention: The 200% coverage ratio of your pledged assets must be maintained throughout the life of your loan. In case of a decrease in the value of your assets, you will need to reconstitute your coverage. Alerts are sent for each 20% decrease in your guarantee amount.
Subscription is done online at Boursobank. The analysis of your income and expenses is automatic from your BoursoBank bank accounts. If all your income is not credited to your BoursoBank accounts, you will need to transmit your last tax notice in PDF format. The granting decision is immediate and final.
Boursobank is currently the only institution offering Lombard credit with PEA and ETFs as collateral. Their process is fast, entirely online, and offers an attractive fixed rate of 2.95%. Moreover, this credit is exclusively reserved for subscribers to the BoursoFirst offer.
Lombard credit offers a unique opportunity to optimize your investments in PEA and ETF. With a fixed rate of 2.95%, low fees, and the possibility to borrow up to 2 million euros, it's a powerful tool for experienced investors. By using this strategy intelligently, you can potentially increase your returns while benefiting from tax advantages. Always remember to consider your long-term financial goals and consult a financial advisor if necessary.