The cost of a Thai stock loan is mainly the interest rate — which can be fixed or floating, and either serviced periodically or rolled into the loan balance — plus any arrangement and custody fees. That rate is not a single market number; it is priced off the risk of the specific stock you pledge. Liquidity, volatility, the loan-to-value you take, the tenor, and the recourse profile all move the figure, which is why a credible cost can only be quoted once the actual position has been reviewed. Anyone quoting you an exact rate before seeing the ticker is guessing.
Key takeaways
- The main cost is interest — fixed or floating, serviced or rolled into the balance — alongside any arrangement and custody fees.
- Pricing is driven by the stock: liquidity, volatility, free float and concentration, plus the LTV, tenor, and recourse you choose.
- A lower LTV and better liquidity generally earn finer pricing, because they reduce the lender's risk.
- Fees are transaction-specific and disclosed up front; there are no standard published rates because no two positions price the same.
- All figures are indicative until your position is reviewed — typically within 2–3 business days — and are not an offer.
The sections below break the cost into its parts, explain what moves each one, and show how a borrower can earn finer pricing. Throughout, the figures we describe are qualitative and indicative — we deliberately avoid quoting fixed numbers, because a rate that is right for a liquid SET50 holding is wrong for a thinly traded mai name, and presenting either as a headline would mislead.
The interest rate: the largest part of the cost
Interest is the dominant component of what a stock loan costs, and it comes in two structural choices that the borrower should understand before comparing quotes.
Fixed versus floating
A fixed rate holds steady for the life of the facility. It gives certainty: you know the cost of carry at the outset and it does not move with the market. A floating rate is set as a margin over a reference rate and resets periodically, so the cost rises and falls with the benchmark. Floating structures often start lower but carry the risk that the benchmark moves against you; fixed structures cost a little more for the certainty they provide. Which is appropriate depends on the tenor of the loan, your view on rates, and how much predictability matters to you.
Serviced versus rolled
The second choice is how interest is paid. Under a serviced structure, interest is paid periodically — quarterly, say — so the loan balance stays flat. Under a rolled (or accrued) structure, interest is added to the outstanding balance rather than paid in cash, so nothing leaves your pocket during the term, but the amount owed grows and the effective LTV drifts upward over time. Rolling interest suits a borrower who wants no cash outflow during the loan; servicing it suits one who prefers to keep the balance — and the collateral cushion — constant. The right choice interacts directly with the LTV you start at, which is the subject of our note on how much you can borrow against Thai shares.
What drives the price
The rate is an output. The inputs are the characteristics of the position and the terms you choose. Five factors do most of the work.
- Liquidity. The deeper and more active the market in the share — measured by free float and average daily trading value — the more comfortably a lender can manage the collateral, and the finer the pricing. A liquid large-cap typically prices well inside a thinly traded counter.
- Volatility. A more volatile share has a wider range of possible outcomes, so the lender demands more cushion and more compensation. Lower, steadier volatility supports tighter pricing.
- Loan-to-value. The more you borrow against the share, the thinner the lender's protective margin, and the higher the rate. A conservative LTV leaves a larger buffer and earns a finer rate.
- Tenor. The horizon of the loan shapes the price. A short, defined bridge carries different risk from an open-ended line meant to sit against a core holding for years, and the two price differently.
- Recourse. Whether the lender can reach beyond the pledged shares is one of the largest single drivers of cost. A non-recourse line prices wider because the lender absorbs the tail risk; a recourse structure prices tighter because the borrower stands behind it. We treat this as a structural decision in its own right in recourse versus non-recourse stock loans.
There is no published rate card for a stock loan, because there is no standard collateral. Each price is a function of a specific share, a specific size, and a specific set of terms.
Fees beyond the rate
Interest is the main cost, but it is not the only one. Depending on the structure, a facility may carry:
- An arrangement fee. A one-off fee reflecting the work of structuring and executing the transaction, typically expressed as a percentage of the facility and agreed up front.
- Custody fees. The cost of holding and administering the pledged shares through the custody arrangement over the life of the loan.
- Transaction and custody-setup costs. The mechanical costs of placing the shares into the custodian account in book-entry form at the Thailand Securities Depository and registering the lender's security over that account, together with any associated documentation, which vary with the board and the form of the holding.
Whatever applies is disclosed when indicative terms are issued, so the all-in cost — rate plus fees — is visible before you commit. We do not believe in fees that surface late. How these pieces fit together end to end is set out on our process page, and the instrument itself is described on the stock loans page.
How a borrower earns finer pricing
Because price is driven by risk, a borrower can influence it by reducing the risk the lender is asked to take. Two levers are the most powerful.
Take a lower LTV. Borrowing less against the same shares leaves a thicker cushion between the advance and the market value of the collateral. That cushion is precisely what the lender is pricing, so a more conservative LTV is one of the most direct ways to bring the rate down. It also leaves more room before any maintenance line is tested if the share falls.
Pledge the more liquid holding. Where a shareholder has a choice of positions, the more liquid, larger-float, lower-volatility share will almost always price more finely than a thin or concentrated one. Liquidity reduces the cost and the difficulty of managing the collateral, and the lender passes that back through the rate. Which holdings clear that bar is the subject of our note on which Thai stocks qualify.
Tenor and recourse offer further room to optimise: a defined, shorter horizon and a measure of recourse can each improve the headline rate, provided they fit your objective. The art is matching the terms to what you actually need rather than chasing the lowest number in isolation — the cheapest quote is rarely the one that best serves the holder.
Why we quote indicative, not fixed
We deliberately keep figures qualitative until we have seen the position, and there is a discipline behind that. A rate quoted blind is either padded to cover the unknown or so optimistic it cannot survive review — neither helps you decide. Once we have the ticker, the holding form, the size, and your objective, we can return an indicative structure — LTV, tenor, rate, and recourse — typically within two to three business days. Those terms are a basis to react to and refine, not a binding offer; the final cost is confirmed as the specifics of the holding are settled.
This note is general information about how Thai stock loans are priced. It is not legal, tax, or financial advice, and nothing here is an offer or an indication of terms for any particular transaction. If you would like a genuine, position-specific view of what your holding could support, the practical step is to request a confidential quote and a senior principal will respond directly.