Lombard credit

What is lombard credit?


luner-lakeAvailable from 76.000 €, the lombard credit is a cash advance secured by the pledge of securities such as gold, bonds, mutual funds, negotiable short-term debt. The lombard credit may be issued is different currencies (EUR, USD, CHF, ...). It is also called "back-to-back" loan. Indeed, this is a line of credit backed by financial securities pledged in favor of a bank in exchange for the granting of cash available. Pledged securities may be held in ordinary securities accounts, PEA, capitalization bonds, life insurance contracts (cash value). Forgues Gestion is specialized in Lombard credit-backed to Luxembourg law life insurance and capitalization contracts.

Practical example:

• The bank that offers this type of loan takes a capitalization contract or life insurance as collateral

• The collateral (ie € 100 000) can generate a current pledged value of 60%.For providing this guarantee, the bank institution will provide you a loan of € 60,000 at a  rate of between 1.65 and 2%.  If taking a rate of 2%, the annual cost of Lombard credit is € 1,200 per year.

• The loan of € 60,000 and your performance (about € 5,500 in gains annualized average) allow you to cover the cost of the loan with a surplus of approximately € 4,500

• So you only mobilized € 40,000 (€ 100,000 - € 60,000) (Investment - line of credit)

(according to our partners, we can build a credit in various currencies and with flexibility on deadlines: 1, 5, 10, 20)

avantages fiscaux et patrimoine contrat de capitalisation