Investment Asset Line

At a Glance

Pay for your consumption expenditures and invest in Mutual Funds and Bonds

For each IAL Facility, you can put more than 1 (one) product as collateral.

Competitive interest rates with small provision fees.

Loans up to 70% of your total investment funds.

IAL Facility

Type

Collateral

Term

Fund Limit

Mutual Funds as Collateral

Money Market Fund,

Fixed Income Fund,

Balanced Fund,

Equity Fund,

(In IDR & USD)

≤1 (one) year

≥IDR 100 million

per product put as collateral

Bonds Collateral

(In IDR & USD)

≤ dependent upon the term of the product put as collateral, or the shortest term if the product put as collateral is more than 1 (one)

≤ 5 billion
per IAL Facility

≤ IDR 10billion
per Customer

How to Calculate Daily Interest of IAL Facility.

The accumulation is based on the daily interest at the end of each month and it becomes collectible interest at the beginning of the following month.

The amount of collectible interest not paid will automatically reduce the amount of the unused IAL Facility.

Daily interest of IAL Facility = Value of IAL Facility used X Interest Rate of IAL Facility X Amount of days of usage of IAL Facility / 360

Illustration of Interest Calculation.

Value of IAL Facility Rp250,000,000

Tenor of IAL Facility

12 months

Interest of IAL Facility

10%

First Month

Second Month

Value of use: Rp100,000,000

Remaining value of IAL Facility: Rp150,000,000

Interest on usage of IAL Facility

= Rp100,000,000 x 10% x 30 days

360

= Rp833,333

If the collectible interest is not paid, then the value of IAL Facility in the 2nd month is:

Remaining value of IAL Facility - collectible interest

Rp150,000,000 - Rp833,333

= Rp149,166,667

Loan To Value ("LTV") Ratio:

Maximum

70 %

of the total investment funds in Mutual Funds / Bonds / Structured Products

During the period of the provision of IAL Facility, the Bank will monitor LTV (Loan to Value) so that it is within the specified limit at all times

LTV = Facility limit or total outstanding (Whichever is higher) X 100% / Market value of collateral

Two possibilities that require a follow-up from you:

2. If LTV is 75% < LTV <80%, Collateral Shortfall will occur.

	Composition of Products Put as Collateral	%	Value (Rp)
First Day	Mutual Fund A		300,000,000
	Mutual Fund B		400,000,000
	Mutual Fund C		300,000,000
	Total Market Value of Products Put as Collateral		1,000,000,000
	Loan to Value	70%
	Maximum Value of Loan Facility (fixed during the facility tenor)		700,000,000
	Value used (assumption)		300,000,000

	Composition of Products Put as Collateral	%	Value (Rp)
Second Day*	Mutual Fund A		250,000,000
	Mutual Fund B		350,000,000
	Mutual Fund C		300,000,000
	Total Market Value of Products Put as Collateral		900,000,000
	Loan to Value	70%
	Maximum Value of Loan Facility (fixed during the facility tenor)		700,000,000
	Value used (assumption)		300,000,000

*There is market movement of the products put as collateral

Calculation of Status

Status of IAL Facility on the second day

700,000,000

900,000,000

100%

77.78% Collateral Shortfall

You have 4 (four) business days (T+4) after notice from the Bank to do a follow-up as stated below. Otherwise, the Bank may liquidate the collateral on the following 1 (one) business day.

Status	LTV	Duration of Settlement
Collateral Shortfall	75% < LTV <80%	4 business days

FOLLOW-UP

If the IAL Facility has not been fully used	If the IAL Facility has been fully used
To lower the limit of the IAL Facility but the new limit must be above the total balance of the IAL Facility To lower the limit of the IAL Facility and pay for the excess of the IAL Facility if the new limit is below the balance of the IAL Facility. To increase the value of collateral by putting other investment products owned as collateral.	To increase the value of collateral by putting other investment products owned as collateral. To lower the limit of IAL Facility and pay for the excess of the Facility IAL according to a new limit.

2. If LTV is ≥85%, Forced Selling will occur.

	Composition of Products Put as Collateral	%	Value (Rp)
First Day	Mutual Fund A		300,000,000
	Mutual Fund B		400,000,000
	Mutual Fund C		300,000,000
	Total Market Value of Products Put as Collateral		1,000,000,000
	Loan to Value	70%
	Maximum Value of Loan Facility (fixed during the facility tenor)		700,000,000
	Value used (assumption)		300,000,000

	Composition of Products Put as Collateral	%	Value (Rp)
Second Day	Mutual Fund A		250,000,000
	Mutual Fund B		350,000,000
	Mutual Fund C		250,000,000
	Total Market Value of Products Put as Collateral		850,000,000
	Loan to Value	70%
	Maximum Value of Loan Facility (fixed during the facility tenor)		700,000,000
	Value used (assumption)		300,000,000

*There is market movement of the products put as collateral

You have 2 (two) business days (T+2) after notice from the Bank to do a follow-up as stated above. Otherwise, the Bank may liquidate the collateral on the next 1 (one) business day. The proceeds from liquidation of the collateral due to Forced Selling is directly deposited to the loan account and if there is an excess, it will be credited to your account.

Status	LTV	Duration of Settlement
Forced Selling	≥ 80%	2 business days

EXCESS USAGE

In the case of usage of facility exceeding the LTV limit at 70%, you will be given 15 (fifteen) business days (T+15) after notice from the Bank to take action. The bank will immediately liquidate the collateral in the following 1 (one) business day (T+16) if there is no follow-up from you.

Status	Duration for Settlement	Duration of Settlement
Excess Usage	T+15 business days	Pay the excess in usage of IAL Facility

Eligibility & Fees

Indonesian citizen and individual customer.
Minimum age of 21 and maximum age of 65 at the time of application.
The IAL Facility will be used for consumption expenditure.
The currency of the product put as collateral must be the same as the currency of the IAL Facility.
Investment products to be put as collateral are not being put as collateral for other loan facilities at DBS Bank.