Secured loan at Scalable Capital

Simple and fast
financing with Credit

Lend money on securities from your brokerage account - at fair conditions*.
Use Credit in a flexible way to trade or pay out - repay at any time.

*Quarterly interest only with use: 3-month Euribor® + 3% p.a. (6.89% p.a. variable borrowing rate, as of May 2024). Note the risk of credit-financed investments. Credit offer of Baader Bank AG, Weihenstephaner Str. 4, 85716 Unterschleissheim, mediated by Scalable Capital. Only available in connection with a Scalable Broker account and up to €100,000.

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Maximum flexibility

You can easily use Credit for trading or payout and repay it at any time without any fees. Start with as little as €1,000 portfolio value, up to a maximum of €100,000.

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Fair conditions: Interest only on usage, no additional fees

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Flexible use: Trade or pay out, pay back at any time

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Easy to apply: Comfortably online in the Scalable Broker

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Quick assessment: During banking hours within a short time

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Direct overview: View your status in the app and on the web at any time

Note the risk of credit-financed investments. Credit offer of Baader Bank AG, Weihenstephaner Str. 4, 85716 Unterschleissheim, mediated by Scalable Capital.

Good to know

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Interest rates are variable and rise when market interest rates increase - measured at the interbank interest rate 3-month Euribor® plus 3% p.a.

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The securities serve as collateral for the amount borrowed. If their value falls, the total credit line is reduced accordingly.

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If the credit limit is overdrawn (e.g. due to a decline in the value of the collateral), the credit must be reduced accordingly by depositing money or selling securities. This may be associated with price losses (incl. total loss).

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Additional costs may be incurred if the credit limit or line are overdrawn through interest for the tolerated overdraft and/or default interest. The bank may terminate the securities account incl. Credit and demand immediate full repayment.

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You can get an overview of the credit conditions at Scalable at any time in the app or on the web in the credit tab. If you have any questions, please contact our customer support team.

The conditions at a glance

Variable borrowing rate (as of May 2024)

6.89% p.a. variable borrowing rate (3‑month Euribor® + 3% p.a.)

Interest charge

Quarterly

You have securities worth €10,000 in your Scalable Broker account. Securities cannot be lent on in full. Your credit line based on your securities amounts to €5,000 in this example. Of this amount, you use a credit 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 the end of quarter)

€33.35

Total amount owed
(Repayment of loan amount + interest)

€2,033.35 (€2,000.00 + €33.35)

Use credit intraday interest-free

Get extra liquidity now with the deposit credit in the Scalable Broker and use Credit intraday even free of charge.

Use Credit and lend on existing securities account in the Scalable Broker

Repay the borrowed amount* on the day of use

Pay no interest

*Pay attention to the fact that securities sold at a profit may be subject to final withholding tax. Be aware of special risks of same-day transactions.

Apply for a secured loan in just a few steps: This is how it works

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Apply for Credit

In a few steps directly in the credit tab, starting from €1,000 portfolio value.

Step 2: Apply for Credit

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Get started

Credit amount is flexibly available for trading or payout.

Step 3: Get started

Frequently asked questions about Credit

What is Credit?
 

Credit is an individual credit line up to which the broker account may be overdrawn (so-called "granted overdraft"). This means you can borrow money in order to trade or to make a withdrawal - even when you don’t have a positive balance in your broker account. The exact amount available at a given point in time depends on the securities in the securities account.

Establishing your credit line costs nothing. Interest only accrues over time on the amount actually borrowed. These are calculated quarterly and are variable. They are based on the 3-month Euribor® interbank rate plus 3 % p.a. (6.89 % p.a. variable borrowing rate, as of May 2024).

Scalable Capital arranges loans from the lender, Baader Bank AG, Weihenstephaner Str. 4, 85716 Unterschleissheim, Germany, which also manages your brokerage account. The custodian bank uses your securities as collateral for the loan. These securities can fall in value or become worthless. This may require repayment of the loan and/or the sale of securities. Please consider the special risk of credit-financed investments.

Who can apply for Credit?
 

All clients of Scalable Broker who are resident in Germany and have a portfolio value of at least 1,000 euro can apply for Credit. This is done completely digitally in a few steps in the client area. The credit check usually takes place within a few minutes on business days.

How and for what can I use Credit?
 

Credit can be used flexibly for trading or withdrawals. After successful setup, the additional amount available through Credit is automatically available when trading or in the payout screen.

Important: Credit is not a real estate loan and may not be used to buy or build a house or apartment.

What are the costs for Credit?
 

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. (6.89 % p.a. variable borrowing rate, as of May 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 euro in the Scalable Broker. The credit line based on these securities is 5,000 euro. Of this, you utilise a credit amount of 2,000 euro for 3 months.

Click here to view the calculation example. Then change the switch below “The conditions at a glance” to “Calculation example”.

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.
When is debit interest due?
 

Debit interest only accrues when a credit amount has actually been used, i.e. the broker account has been overdrawn.

The interest is calculated on a daily basis and charged to the broker account on a quarterly basis.

How can I repay Credit?
 

You can deposit money into your broker account at any time by Instant, direct debit or bank transfer and use it to repay the loaned amount. There is no fixed term or fixed instalments.

Instead of making a deposit, you can also sell securities. The proceeds from the sale automatically reduce the amount you have loaned.

If the brokerage account is in the negative, any other money received also automatically serves to repay the loan amount. This applies, for example, to the receipt of dividend payments, interest income, or tax settlement payments.

What is the difference between credit limit and credit line?
 

The credit limit is the contractually defined maximum amount that can be loaned. The credit line can be set individually up to the amount of the portfolio value - rounded down to multiples of 1,000 euros - but up to a maximum of 100,000 euros.

If the assets in your portfolio increase, you can apply for a new credit limit.

The credit line shows the live amount of credit available based on current stock market prices and lending rates. The credit line is capped at the credit limit.

What is a loan-to-value?
 

Securities are subject to fluctuations in value (volatility). Therefore, not the entire securities position is accepted as collateral in each case, but only a portion - up to the so-called loan-to-value. While broadly diversified ETFs can be loaned to a large extent, derivative securities or crypto ETPs, for example, which are highly susceptible to fluctuations, cannot be loaned at all. The credit line is calculated as the sum of all positions valued at market prices, each multiplied by the loan-to-value ratio.

Direct debits of the last eight weeks may also have an impact on the available credit amount.

How is the credit line calculated?
 

The credit line is calculated as the sum of all positions valued at market prices, each multiplied by the loan-to-value ratio. Securities with low price fluctuations (volatility) generally have a higher loan-to-value ratio, while those with higher price fluctuations have a low or no loan-to-value ratio.

Non-binding presentation of loan-to-value rates by asset class. Refer to the custodian's loan agreement for binding loan-to-value rates. Please note: The lending rates for individual securities may differ and may be adjusted by the custodian bank.

Funds/ETFs: 75 %
Bonds: 80 %
Equities: 40-75 %
Derivatives: 0 %
Crypto ETPs: 0 %
Cash balances: 0 %

Example 1:
Your portfolio value is 50,000 euro. The credit limit is also 50,000 euro. 40,000 euro is invested in ETFs, the rest is cash on the broker account. The credit line is therefore 30,000 euro (40,000 euro in ETFs * 75 % + 10,000 euro credit balance * 0 % = 30,000 euro) and is always capped at the credit limit.

Example 2:
Your portfolio value is 50,000 euro. The credit limit is also 50,000 euro. Of this, 30,000 euro is invested in ETFs, and the remaining 20,000 euro is held in less liquid small cap stocks (loan-to-value ratio 40 %). The credit line is therefore 30,500 euro (30,000 euro in ETFs * 75 % + 20,000 euro in small cap stocks * 40% = 30,500 euro) and is always capped at the credit limit.

Example 3:
Your portfolio value is 50,000 euro. When applying for credit, a credit limit of 12,000 euro was set. 40,000 euro is invested in ETFs, the rest is cash on the broker account. The loan value of the securities (40,000 euro in ETFs * 75 % + 10,000 euro credit balance * 0 % = 30,000 euro) exceeds the credit limit. The credit line therefore amounts to 12,000 euro. The credit limit can be increased on request if necessary.

The credit line is therefore 30,000 euro (40,000 euro in ETFs * 75 % + 10,000 euro credit balance * 0 % = 30,000 euro) and is always capped at the credit limit.

What are the risks of Credit?
 

Your securities serve as collateral for the credit used. These securities may fall in value or become worthless. This may require early repayment of the loan and/or the sale of securities. Please consider the special risk of credit-financed investments.

A price slide on the market can cause individual or all securities in the securities account to lose value. This automatically reduces the amount available as a credit (credit line), as there is less collateral in the securities account.

If the credit used exceeds the credit line, the credit must be repaid (at least in part). This can be done by making deposits or selling securities, which may result in price losses being realised. Alternatively, the credit line can be increased, if necessary, by switching from securities with low loan-to-value ratios (e.g. derivatives) to instruments with higher loan-to-value ratios (e.g. ETFs).

If clients fail to meet the obligation to settle the overdraft of the credit line, the custodian bank may sell individual or all securities positions to repay the credit used and, if necessary, terminate the account including credit. The open credit amount is due for repayment immediately upon termination. Interest on the overdraft and, if applicable, interest on arrears may be incurred.

How can I cancel Credit?
 

Credit can be cancelled at any time in the client area. To do so, the borrowed credit amount must first be repaid. Credit can then be cancelled via "Cancel Credit".

What is the difference between Credit and a conventional instalment loan?
 

Credit can be applied for quickly and completely digitally (without sending documents by mail). Verification usually takes place within a few minutes on business days. Since credit amounts are secured with the securities held in the securities account, it is not necessary to provide proof of income, for example.

The custodian bank may transmit personal data to Creditreform Boniversum GmbH, Hammfelddamm 13, 41460 Neuss, Germany, for the legally required creditworthiness check. Data will not be transmitted to Schufa. Further information on the processing of your data by Creditreform Boniversum can be found at: www.boniversum.de/eu-dsgvo.

Interest only accrues when Credit is used and is always measured fairly only on the amount used for the period used. The repayment of Credit is also flexible. Credit can be repaid in full or in part at any time by paying in or selling securities. There are no mandatory regular repayment instalments, as Credit has an unlimited term. You can, of course, set up a standing order from your current account to your clearing account for repayment.

Risk note

Increased risks for credit-financed securities.

If the portfolio value decreases, the credit line may be reduced. In the event of a shortfall in the broker portfolio, the securities deposited as collateral may be sold and, in extreme cases, your securities account may be terminated by the custodian bank. The interest will be debited from the broker account.

Risks associated with the use of loans

If a loan is used, both the payment of the interest on the loan and the repayment of the loan must be taken into account. In order to cover these costs with income from securities investments, securities prices and dividends would have to develop particularly favorably. Note that securities are subject to price fluctuations. Thus, there is a risk that you may have to cover the cost of the credit from available cash or that securities may have to be sold at a loss.

Interest rates may rise

Note that interest rates are variable and may rise. This has implications for the level of interest rates on credit. See also the information provided by the Custodian Bank.

Legal notice

The securities credit and the quarterly interest, measured at the variable borrowing rate 3-month Euribor® + 3% p.a., must be repaid in any case - regardless of the use of the credit line. Note the risk of credit-financed investments: Due to price changes, your securities serving as collateral may lose all or part of their value. This may require early repayment of credit and/or the sale of securities.

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