The Lombard loan or lending against collateral is a loan at a fixed rate asset-backed investments pledged as collateral . Lombard loans are granted against the pledge of highly liquid assets (shares, bonds or certain life insurance contracts with cash surrender value) 1 .
Lombard credit solutions are aimed at individuals or companies with a heritage purpose.
Thanks to the Lombard loan, the assets remain invested and the borrower retains all the advantages attached to them. It allows you to take advantage of attractive investment situations available on the market while maintaining the assets. On the other hand, if the patrimonial values held in the deposit lose value, the borrower must bring in more securities as collateral or accept a corresponding decrease in the amount of the credit.
It is mainly used as a tax exemption product by substituting an income with a credit.
Notes and references
- This article is partially or entirely from the article entitled ” Types of bank credits ” (see the list of authors ) .
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