Can I get a loan using my stocks as collateral?

A stock-secured (securities-backed) loan pledges eligible equities, ADRs, or in many cases liquid ETFs as collateral for cash or a credit structure. You typically remain economically exposed to the pledged sleeve unless documents say otherwise—dividend treatment, substitution, and voting can vary. This is financing, not a sale: you owe principal and interest and must meet covenants until payoff. For the full lifecycle, start with our stock loans hub and the evergreen guide version of this topic.

Programs differ by jurisdiction, exchange, custodian, and lender appetite. What works for a U.S. large-cap portfolio may differ from international listings—another reason indicative terms require a real file review.

You submit holdings, entity structure, and liquidity need. Compliance and collateral teams run in parallel: KYC/AML, sanctions screening, exchange and liquidity screens, concentration and volatility haircuts, and any restriction flags (lockup, 10b5-1, shareholder agreements). You receive an indicative or firm term sheet, then legal and custodian steps perfect the security interest, and funds wire when conditions precedent clear. The public how it works page mirrors this path at a service level.

Bottlenecks are usually third parties—custodians, counsel, or incomplete disclosure—not mysterious lender delay. Lead with clean statements and deadlines via get started.

Liquidity without a forced sale can help when you want cash but believe selling today is the wrong move. Documented structure beats informal leverage—covenants and remedies are spelled out. Global reach matters for internationally diversified books; we routinely review collateral across major venues, not a single domestic menu. Comparison shopping is easier once you understand mechanics—use stock loans and rates & terms before you commit.

Market drawdowns can trigger maintenance or collateral calls. Interest is a certain cash cost. Default remedies may include liquidation of pledged shares. Cross-border pledges add custody complexity. Credit and compliance issues can still block deals even with great collateral. Nothing here is legal or tax advice—read packages with counsel. The official risks section collects product-level themes.

Business owners bridging working capital or acquisitions while keeping listed equity—see business owners. Executives with concentration and compliance constraints—our executives & RSUs hub outlines common patterns. Investors funding lifestyle or opportunistic draws without dismantling a thesis. In each case, success depends on realistic LTV, liquidity buffers, and honest disclosure of restrictions.

Expect questions on eligibility lists, custody, minimum scale, and documentation. The detailed checklist lives in what are the requirements for a stock loan and the article on requirements (article). If your account type or entity is non-standard, say so on day one.