Investing long term and staying financially flexible - Scalable launches Credit

Munich, 4th October 2023 - Clients of Scalable Capital, a leading investment platform in Europe, now receive access to secured loans in the Scalable Broker. ‘Credit’ allows investors with permanent residence in Germany to remain financially flexible while maintaining their long-term investments in the capital markets. They can buy additional securities or withdraw money to finance personal wants without selling existing positions. The securities held serve as collateral and make it possible to offer attractive terms transparently aligned with the money market. Scalable Capital acts as intermediary, the credit is granted by the partnerbank Baader Bank AG.

Clients are free to choose their use of the credit, which is provided in the form of a pre-approved overdraft in the client’s cash account. The scenarios where additional money is needed are diverse and can arise at any time. The use for real estate financing is excluded by law.1

Erik Podzuweit, Founder and co-CEO of Scalable Capital: “Financial independence also means, to get access to credit today and to stay invested for the future. As a full service brokerage platform we enable our clients to borrow money to attractive terms.”

The secured loan can also be used to make additional investments in the capital markets without having to liquidate any existing positions. Once the credit line has been granted, the credit can but does not have to be used at any time. In addition, no interest is charged on intraday borrowing.

Lending and paying back at any time at fair terms with Credit

Without a fixed term or repayment schedule ‘Credit’ is more flexible than most consumer or instalment loans and at the same time less expensive than many overdraft facilities or credit cards. The variable interest of ‘Credit’ is 3% p.a. plus the 3-month-Euribor® money market rate. This results in an interest of currently 6.88% p.a., which is updated at the beginning of each month. Interest is only payable when the credit is actually used and is due at the end of a quarter. Clients are free to decide when they use the loan and at what rate they repay it. There is neither a fixed repayment nor does penalty interest apply for unscheduled repayments. The offer is available for clients of the FREE, PRIME and PRIME+ Broker.

Value and type of assets in the portfolio determine credit limit

Starting from a portfolio valuation of 1,000 euro in the Broker, Scalable Capital provides clients in Germany access to secured loans, which are granted by Baader Bank AG. The upper limit is determined by the individual borrowing limit clients are granted. It is based on the market value of the assets held and their loan-to-value. Generally, less volatile securities such as broadly diversified ETFs have a higher loan-to-value. These measures ensure that there is sufficient buffer, so that the loan taken normally does not exceed the value of the holdings and therefore no unsecured debt occurs. If an underfunding nevertheless occurs as a result of major price losses and this is not offset by the sale of securities, or the provision of additional collateral or payments, securities may have to be sold by the custodian bank.The upper limit of the credit is displayed live in the broker. The maximum credit line is 100,000 euro.

Credit acceptance within a few minutes online

The credit application can be done in the app or on the web at any time. During business hours, if a credit line is granted, the client is informed within minutes. Partly discriminating factors such as age, gender or the job situation are not used as criteria for granting loans.

1 Use for real estate financing is excluded by law. More information on the conditions

About Scalable Capital

Scalable Capital is a leading digital investment platform in Europe that makes investing easy and affordable for everyone. Clients of the Scalable Broker can trade 7,800 stocks, 2,500 ETFs, and 3,000 funds and other exchange traded products to build their portfolios, earn interest on their cash balance and take secured loans. The PRIME subscription enables unlimited trading on all orders over 250 euro. Clients in PRIME+ receive an additional 2.6% per year on uninvested cash up to 100,000 euro. People can also have their investments professionally managed via the digital wealth management service. More than 600,000 clients already use the services.

Scalable Capital was founded in 2014 and is active in Germany, Austria, France, Italy, the Netherlands, Spain, and the UK. The investment firm, which is supervised by BaFin and the Bundesbank, has more than 15 billion euros on its platform. In addition to its business for private clients, the company operates B2B solutions. Its long-standing partners include ING, Barclays Bank in the UK, the robo-advisor Oskar, and the Santander Group in Spain. Scalable Capital employs more than 450 people at its offices in Munich, Berlin, and London. Together with the founding and management team around Erik Podzuweit and Florian Prucker, they strive to empower everyone to become an investor.

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Media contact
Ina Froehner
Scalable Capital
VP Communications and Public Affairs