Shareholder Loan or Credit Line

Preferred Shareholder Credit Line and Loan

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Help Meet Short-Term Borrowing Needs While Keeping Your Long-Term Investment Strategy in Place

The Preferred Shareholder Credit Line and Loan are exclusively available to Franklin Templeton mutual fund shareholders to provide you with flexible, short-term borrowing solutions.

A Preferred Shareholder Credit Line or Loan is easy to set up. There are no origination or application fees. Qualified shareholders can borrow up to 65% of the value of their Franklin Templeton mutual fund shares, pledged as collateral for the loan.¹

Highlights

No origination fees
Lower rates than unsecured loans or credit lines
Convenient credit card access with the credit line
Interest-only payments
No prepayment penalties

	Preferred Shareholder Credit Line	Preferred Shareholder Loan
VARIABLE INTEREST RATE	Prime Rate² as of	Prime Rate² as of
FIXED RATE³	Fixed rate option is not available	1 Year: 4.00% 3 Year: 4.25% 5 Year: 4.50%
SETUP FEES	None	None
PREPAYMENT PENALTIES	None	None
LOAN/LINE MINIMUM	$26,000	$26,000
INITIAL LINE/LOAN AMOUNT	Up to 65% of the value of the Franklin Templeton mutual fund shares, which are pledged as collateral¹	Up to 65% of the value of the Franklin Templeton mutual fund shares, which are pledged as collateral¹
ANNUAL FEE	$25	None
TERM	10 years	Up to 5 years for variable rate loans 1, 3, or 5 year term for fixed rate loans
CONVENIENT ACCESS	Platinum MasterCard^®⁴ Checks Wire transfer	Loan funded directly by check or wire transfer to your bank account
FAST AND EASY SET UP	Initial access to the credit line is generally available within three business days of approval	Funds are generally made available within three business days of loan approval.

Getting Started

You may complete the online application for either the loan or the credit line. Please see our approval and funding process for more information about applying for a Preferred Shareholder Credit Line or Loan.

Frequently Asked Questions

Q.	Do I need a financial advisor to apply for a Preferred Shareholder Loan or Credit Line?
A.	Yes. The first step is to consult with your financial advisor for advice on whether or not this credit line or loan may be a useful financial planning tool for you in view of your overall financial position and your financial and investment goals and strategies.
Q.	If my investment strategy changes, can I exchange my pledged fund shares between Franklin Templeton mutual funds?
A.	Yes. The Franklin Templeton fund shares you first pledge as collateral for your credit line or loan can be exchanged among other Franklin Templeton funds. The shares of any new funds into which you exchange will continue to be pledged as collateral for your credit line or loan.
Q.	What if the market value of my pledged mutual funds decreases?
A.	If the market value of your pledged shares declines so that the outstanding balance on your credit line or loan is 85% or more of the then current value of the pledged shares, both you and your financial advisor will be notified. You will be asked to decrease your loan-to-value percentage below 85%, by either paying down your loan balance or pledging additional Franklin Templeton fund shares as collateral.

Footnotes

1.	Shareholders can borrow up to 65% of the value of their mutual funds they elect to pledge as collateral for the credit line or loan. The value of the pledged shares is calculated at the time the credit line or loan is approved and shares pledged; if the value of the pledged shares subsequently decreases, we may request that you either reduce the outstanding balance of your credit line or loan, or pledge additional Franklin Templeton fund shares as collateral so that the outstanding balance of your credit line or loan does not exceed 85% of the then current value of your pledged shares. Credit is subject to approval. Franklin Templeton fund shares held in a retirement plan [such as an IRA, a 401(k) or a 403(b) plan] or education account (e.g., Coverdell or 529 plan) cannot be pledged as collateral. The Preferred Shareholder Credit Line cannot be used to purchase or carry margin stock (as defined in Federal Reserve Board Regulation U). A $25 annual fee applies to the credit line, payable at the end of each 12-month period.
2.	The interest rate on the credit line or variable rate loan will equal the Prime Rate (which was as of ) published in the "Money Rates" section of The Wall Street Journal, exclusive of the annual fee. The variable APR is subject to change.
3.	For example, a 5 year loan of $50,000 would have 60 monthly, interest-only payments, ranging from $172.60 to $191.09, and one final payment of $50,191.09. Client loans may be different from this example.
4.	The option to request a Franklin Templeton Bank & Trust Preferred Shareholder Credit Line MasterCard^® is provided on the application. Available to non-business accounts only.

Additional Resources

Approval and funding process