Margin Loan

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Margin Loan

Money that an investor has borrowed from a broker in order to buy securities. An investor who buys on margin can realize huge gains if the price of the security moves in a favorable direction; however, he/she also takes on a great deal of risk because it may not move in such a direction. See also: Minimum maintenance, Margin call.
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The bank alleges that two junior employees at its Brady House branch in Mumbai colluded with companies belonging to Modi and Choksi, and issued fraudulent "letters of undertaking", or LoUs, without asking for any margin money as security, even though the firms did not have any pre-approved credit limit.
The entire process of application flow and fund flow right from receipt of application, processing, sanction by banks, transfer of margin money subsidy till creation of Term Deposit Receipt (TDR) in the name of applicant has been made online.
When the beneficiary's employee came for a fresh LOU, in fact, this time Joshi pointed out that a Margin money is required for the allotment.
General category beneficiaries can get margin money subsidy of 25 per cent of the project cost in rural areas and 15 per cent in urban areas.
And the upper limit is probably restricted to the availability of margin money.
Under the Higher Education Credit Guarantee Scheme, students would be provided loans without any collateral or third party guarantee or margin money.
The company recently launched the 5 benefits education loan package with benefits like no margin money, interest rate starting at 12.
Besides, Aptma Chief said that smaller textile firms, who did not want to avail the interest subsidy, had the option of 15% subsidy on margin money.
Officials at a few banks, however, said that they had already been proactively waiving processing fee and margin money at the time of renewal of these credit cards.
Then, too, the initial margin money or deposit required by the Comex to trade silver futures swelled from $4,250 per contract a year ago to $16,200 per contract in early May.
Exhilway Finance plans to sell over 25,000 managed accounts by December 2010 which will bring in margin money of over Rs 62 crore.
In the US, the margin money requirement for equity is 50 per cent whereas for bonds it is 25 per cent.