Shinhan Investment Securities will cut the interest rate on its stock sale collateral loans to an annual 6.95 percent to ease customers' financing cost burdens.
Shinhan Investment Securities said on Monday it will replace its stock sale collateral loan rate system, which it operated in 24 tiers under existing conditions, with a single annual rate of 6.95 percent.
A stock sale collateral loan is a service that lets customers use short-term funds by using sale proceeds as collateral after selling shares, without waiting until the actual settlement date.
It can reduce the inconvenience of funds being tied up between a stock sale and settlement, and can be used by investors with short-term funding needs.
The revised rate will apply to stock sale collateral loans newly applied for after Aug. 20, after system maintenance.
Jeong Yong-wook (정용욱), head of Shinhan Premier at Shinhan Investment Securities, said, "In an environment of rising interest rates, we decided on this cut after considering ways to reduce costs that customers can feel."
Oh Sang-yup
yub@d-today.co.kr