EasyEquities has introduced an initiative to offer loans to its clients to deter them from liquidating their investments for short-term cash needs. The average loan amount hovers around R8 000, illustrating diverse usage patterns ranging from covering expenses to reinvesting the borrowed funds. The EasyCredit facility provides loans at the prime lending rate plus 3%, utilizing qualifying assets such as the top one hundred shares on the JSE and select exchange-traded funds as collateral. Investors can leverage up to 33% of the value of qualifying investments in their South African investment account and tax-free savings account (TFSA). While clients retain the option to sell collateral assets, a portion of the proceeds is allocated to repay the loan. The objective is to maintain consistent loan-to-collateral ratios and prevent unnecessary asset sales.
