Margin loan is a tool used by many stock investors to own more shares than their current capital, thereby increasing their profit potential. Although it offers high profit opportunities, margin loans also come with some risks. Therefore, investors need to thoroughly understand related information such as borrowing methods, procedures, and interest rates to avoid potential risks. Refer to the following article from Vina Securities to better understand this form of loan.
What is a Margin Loan?
A margin loan is a commonly used term in investing, referring to the margin lending activity between investors and securities companies. It is a financial leverage that allows investors to borrow money from a securities company to buy more shares than their existing capital.
This method requires collateral for the margin loan, which is the value of the shares in the account. The margin loan interest rate is agreed upon beforehand and varies by securities company, typically ranging from 11-14% per year.

Factors Affecting the Loan
The amount you can borrow is influenced by the following factors:
- Type of shares owned: The higher the quality of the shares, the more margin loan you can get from the securities company.
- Market conditions: During periods when the stock market shows positive development, you can borrow more on margin.
- Margin requirements: Different securities companies have different margin requirements, so the amount you can borrow for investment varies.
Margin lending provides a larger budget for investors to buy more shares and earn higher profits from price differences. However, when the market declines, margin borrowers are at risk of losses.
Detailed Guide to Margin Loan
Major securities companies in Vietnam such as SSI, VNDirect, TCBS, and VPS provide specific guidelines on margin loans for investors. While the regulations differ between companies, the conditions and procedures are similar.
Conditions for Margin Loan Approval
Investors seeking margin loan approval must meet the following basic requirements:
- Legal compliance: The customer must meet the necessary legal conditions for margin transactions and the margin loan regulations of the securities company at that time.
- Debt status: The customer should not be on the list for early debt termination or recovery.
- Trading account: The customer must have a trading account with the securities company, with a minimum history of 3 months from the first transaction.
- Financial capability: The customer must have sufficient financial capacity and income to repay the loan within the set limits.
- Eligible securities: The securities purchased must be within the marginable securities list and within the limits set by the securities company.
- Order value: The order must have a value less than or equal to the value of the shares (determined at the time of order) currently held in the account.

Required Procedures
Investors meeting the above conditions can follow these procedures to apply for a margin loan:
- Margin loan agreement: (As per the sample form prescribed by the securities company).
- Trading account: The investor’s securities trading account.
- Signed application: An application with a signature verified by local authorities or an online signature verification.
- Identification documents: Valid ID card, citizen identification card, or passport.
Investors can complete the margin loan registration contract directly at the securities company or contact the company’s hotline. The staff will guide you on how to complete the necessary procedures.
Margin Loan Guide for Specific Securities Companies
TCBS
Techcom Securities (TCBS) offers margin loans with the following policies:
- Interest rate: 14% per year for on-time payments, 20% for overdue payments.
- General margin loan limit: 10 billion VND.
- Preferential interest rate period: Maximum of 89 days.
- Maintenance margin ratio: 85%.
Registration steps:
- Have a securities trading account on the company’s official website – TCInvest
- Access the TCInvest application => On the homepage, select “Transfer stocks.”
- In the “Place order” section => Select “Margin sub-account.”
- Return to the homepage and select “Margin loan.” You can check information and increase the margin loan limit. The system calculates the interest rate according to TCBS’s regulations.
VNDirect
VNDirect’s margin loan policies include:
- Maturity period: 90 days, extendable by 90 days.
- Loan interest rate: 13.8% per year, subject to change over time.
- Overdue interest: 150% of the on-time interest rate.
- Initial limit: 10 billion VND, with potential increases during transactions.
- Loan ratio: 10-50%.
- Applicable to: All listed securities on VNDirect’s UBCK.
- Maintenance fee: None.
Registration steps:
- Log in to the company’s website and use your registered account.
- Register for a margin loan online: Select the required product/service, financial product, account number, agree to the registration terms, enter the OTP, and submit the registration request.
- Select “I agree to the terms and policies.”
- Confirm “submit registration request.”
The system will automatically send the margin loan agreement to your registered email. You need to print it and send it to VNDirect’s headquarters within 7 days. If you miss the deadline, the registration will be canceled, and you’ll need to start over.

VPS
VPS Securities offers margin loans with the following package information:
- Maximum maturity period: 90 days.
- Interest rate for existing customers: 14% per year.
- New customer interest rate: 8.8% for the first 9 days, and 14% from day 91 onwards.
Registration steps:
- Log in to your VPS securities account.
- In the portfolio section, select the blue section in the top right corner, and choose sub-account with tail number 6 – margin account.
- Deposit money into the selected sub-account and confirm the deposit.
- Choose the shares to buy with the required margin ratio and company regulations. Then, the investor can start trading.
SSI
SSI’s margin loan policies include:
- Interest rate: 13.5% per year (360 days).
- Service maintenance fee: Free.
- Loan period: 90 days.
- Loan limit: 70 billion VND.
- Loan ratio: 10-50%.
Registration steps: At SSI, you can register for a margin loan via the company’s hotline or on the SSI app, then send the registration form to SSI’s headquarters according to regulations. Margin accounts and regular trading accounts are separated. You can simultaneously trade on both accounts.
To view the marginable securities list, in the Margin account, select “Price board,” then click “Marginable securities list” to follow the list and corresponding margin ratios.
You can choose suitable securities codes, then place buy/sell orders similar to a regular account. To track margin information, go to “Asset Control and Management,” then select “Portfolio Management.”
Should You Take a Margin Loan?
To determine whether to take a margin loan, investors need to analyze the opportunities and risks associated with this tool. The opportunities that margin loans bring include enhancing your investment position, having more capital to buy securities, and potentially earning more profits. This occurs when stock prices rise, and the profit margin is higher than the margin loan interest rate of 9-14%.
However, the risk level when taking a margin loan is very high. Investors must accurately assess their capital capacity and predict market trends to make informed decisions. The limitations when taking a margin loan you should note include:
- Falling stock prices: This can lead to losses, with higher losses if you borrow more.
- Large loan amounts: Correspond to significant margin loan interest amounts, which are substantial.
- Inability to pay on time: The overdue interest rate is very high, costing more than the initial loan.

What is Margin Loan Interest? When to Pay?
Margin Loan Interest
As mentioned above, when taking a margin loan, investors must carefully consider the required interest to make the most suitable decision. So, what is margin loan interest?
Margin loan interest is the interest calculated when you borrow to buy shares from a securities company, with rates set by each company. The interest is usually calculated daily, ranging from 0.025-0.05% per day. Annually, the rate ranges from 9-14.5%, with fluctuations at different times. However, securities companies often have preferential policies and reduced interest rates to attract investments.
Investors borrow based on the collateral’s value. Understanding the margin loan interest rate helps you know the repayment amount and compare rates across different companies to choose the most suitable option.
How to Calculate Margin Loan Interest
Margin loan interest can be calculated by various time units such as hours, days, months, or years. Below is the daily calculation method:
Daily interest calculation: Interest = Margin loan balance * Margin loan interest rate * Loan hours/24.
Interest calculation by days: Interest = Margin loan balance * Margin loan interest rate * Loan days/365.
Thus, the daily margin loan interest is substantial, depending on the loan amount and the leverage ratio. If the interest on the total capital is less than the margin loan interest, the investor is losing money.
When to Repay the Margin Loan?
The margin loan must be repaid within the specified maturity period for each securities company, ranging from 90 to 180 days. For example, if the maturity period is 90 days, the repayment deadline is the 89th day. You can extend the loan period for up to 2 years, complying with the company’s policies. The overdue interest rate is very high, so pay attention to your repayment deadline.
The above information on margin loans at major securities companies and interest rate calculations helps answer whether you should take a margin loan. To ensure a smooth investment process, thoroughly research margin loans before starting.