Unsecured lending ..Yes: Secured ....No

[prancing_horse]

A week ago I applied, through my "personal banker", nogal,for a loan to buy shares from a fellow director in one of the companies of which I'm a shareholder, and made it clear i wanted it repaid in 9 months. I own Industrial, commercial, residential and agricultural properties, motor vehicles etc etc, and owe Jacks**t, no bonds, hps overdraft etc etc.The loan is 1/40th of my nett worth. The value of my shares on the JSE is 8 fold greater than the loan I asked for. "No ways" they said, have to take a bond on one of the properties, My reply...."No Ways, go suck eggs" . I've been with these clowns from the days they were Netherlands Bank, the may be green, but have made me Raging Red. Yet I've an employee,who owns absolutely nothing and I'm trying to help, only earning 8 grand a month yet has an unsecured loan of 85 grand. Something wrong somewhere....sorry guys but just had to let off steam

[Preston]

Are you applying as a Juristic Person (Company) or as an individual?

[Preston]

Is the loan value greater that R250K?

[prancing_horse]

Yes & as an individual

[jaj]

Don't feel too bad they are all the same. I'm in the same situation you describe but with Standard Bank for 25 years. (properties not bonded and plenty on the share market with OST) I have a R200 000 overdraft facility that I never use and when I asked, also via my private banker, for an additional R200 000 for one week only they also refused. I also advised them to suck eggs but it made no difference. I do have to admit that they would give it to me but it needed to go to some sort of approval procedure that would take to long for me and I made another plan.

[partridge]

I think you should take a hard look at where you are invested.

[Preston]

Never tell the banks the time period of repayment. Take out the facility, when the cash for repayment is available, repay the loan and then instruct them to close the facility. There is a cost of fund attached to every transcations, if the transcation is for a very short time, the NPV of the transcation could be negative for that specific dept. (Cost of loading your details on to the system, cost of submitting the application for approval, cost of fund from Treasury,cost for checking credit worthiness from respective credit bereau)

[CHATTYCHAT]

I do not go private banking and do not have a personal banker for my beck and call - and I can make loans up to R500k with no strings attached. Why? - because I bank RED.

[Preston]

thaba bank