A Complete Guide for 2025


If you’re considering how to get a loan using stocks, follow these steps to secure a securities-backed loan and make the most of your investment capital. Unlike traditional personal loans, stock-backed lending allows you to access liquidity without selling your investments.

Here’s how it works.

1. Evaluate your portfolio

To qualify for a securities-backed loan, ensure you have sufficient equity in your stocks as loan collateral. Most lenders allow you to borrow at loan-to-value (LTV) ratios ranging from 50% to 80%, depending on the risk and liquidity of your stocks. However, not all securities qualify. Lenders typically look for:

  • Blue-chip or highly liquid stocks – Shares of well-established companies with stable market value.
  • Diversified portfolios – Some lenders prefer diversified holdings rather than concentrated positions in a single stock.
  • Minimum portfolio value – Most lenders require at least €10 000 to €50 000 in securities to qualify.
  • Loan-to-Value (LTV) ratio – Lenders generally allow borrowing 50% to 80% of the stock portfolio’s value.


2. Choose a lender

Not all stock portfolio lending options are the same. Consider: 

  • Interest rates – Look for low-interest loans against stocks to minimize borrowing costs.
  • Loan terms – Consider repayment flexibility and restrictions. Margin loans vs. securities-backed loans – Margin loans are tied to brokerage accounts, while securities-backed loans may offer lower rates and fewer restrictions.
  • LTV ratio – A higher LTV allows for more borrowing, but may come with higher risks of liquidation.
  • Margin calls – Understand the lender’s policy on market fluctuations and whether you’ll need to deposit additional funds if your stocks drop in value.


3. Check for hidden fees

Even if a lender offers low-interest loans against stocks, be aware of additional costs.

  • Origination fees – Some lenders charge 1-3% upfront.
  • Maintenance fees – Ongoing account fees can reduce your returns.
  • Forced liquidation costs – If your portfolio value drops, the lender may sell your stocks at a loss.


4.
Apply for the loan

Submit your portfolio details and complete the application process. Many lenders have streamlined approval procedures since the loan is secured by your stock-backed lending agreement

5. Receive funds

Once approved, the funds are deposited into your account, often within a few days. Since borrowing money against investments involves secured collateral, processing times are typically faster than traditional loans.

6. Reinvest strategically

Use your newly acquired liquidity to diversify your portfolio and optimize returns. Consider investing in:


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By following these steps, you can efficiently leverage stocks for liquidity while maintaining long-term investment growth. Take time to understand the risks of stock-backed loans before committing to any borrowing strategy.