Definitions for "MARGIN LENDING"
in securities, is where the lender, usually a bank, will lend you between approximately 40% and 70% of the value of approved shares and managed funds. For example, if you have $30,000 in cash, you could borrow up to $70,000 and buy a $100,000 portfolio (assuming a lending ratio of 70%). This portfolio then becomes the security for your margin lending facility.
Using existing equity as collateral to borrow funds to leverage a portfolio.
Margin lending is borrowing money to invest in shares or managed funds, using your existing investments as security for the loan.