What is a securities-based line of credit?

A securities-based line of credit helps you to meet your liquidity needs by unlocking the value of your investments without selling them. This type of borrowing may be more flexible and easier to establish than other choices. It depends on whether you have sufficient eligible securities to use as collateral.

What are securities-backed lines of credit (sblocs)?

Lenders often promote securities-backed lines of credit (SBLOCs) as an easy and inexpensive way to access extra cash by borrowing against the assets in your investment account without having to liquidate these securities.

What is a revolving line of credit (sbloc)?

Set up as a revolving line of credit, an SBLOC allows you to borrow money using securities held in your investment accounts as collateral. An SBLOC requires you to make monthly, interest-only payments, and the loan remains outstanding until you repay it. You can repay some (or all) of the outstanding principal at any time, then borrow again later.