Residual Stock Loan
Key Features of a Residual Stock Loan
Residual stock loans offer a smart way to unlock liquidity without parting with your investments. These are secured, purpose-flexible loans that allow you to borrow against the value of stocks you already own—especially those remaining after a margin loan or used previously as collateral. The loan amount is calculated based on the current market value and performance of your shares, giving you access to funds without having to sell or transfer ownership. Since the loan is secured by your stocks, interest rates tend to be lower compared to unsecured loans, making it a cost-effective choice.
Additionally, approval processes are generally quicker, as lenders prioritize the value of the stocks over credit scores. Whether you need funds for personal use, business investments, or emergency needs, residual stock loans provide flexibility without disrupting your long-term investment strategy.
Unlock funds without selling your shares: Residual stock loans allow you to access the value of your existing shareholdings without needing to sell them.
Benefit from lower interest rates on a secured loan: Since these loans are backed by your stock holdings, they’re considered lower risk by lenders—often resulting in more competitive interest rates
Quick and hassle-free approval process: Loan approvals are typically based on the value and liquidity of your shares rather than your credit history alone.
