If you need to borrow money to pay off credit card debt or pursue a new project, a personal loan is probably the first thing that pops into your head. And while personal loans are usually much better options than high-interest credit card debt, you do have a personal loan alternative if you have an investment portfolio, which all MoneyLion members do!
An investment loan or a portfolio line of credit (variations may also be called an investor loan or a margin loan) allow you to borrow against the investments you own, often at rates superior to personal loan rates. If you’re considering an investment loan, check out our investor loan, where we let you borrow up to three times the balance of your investment account while staying fully invested.
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What Is an Investment Loan?
If you own stocks, bonds, and ETFs, some brokers or investment platforms will allow you to borrow against those investments. Brokers may call this a non-purpose loan, a portfolio line of credit, or an investment loan, and it is similar to how you can borrow against your investments to receive a margin loan.
For example, let’s imagine you have a $10,000 investment portfolio, some brokers might allow you to borrow $2,000 “on margin” to fund a small project or an emergency bill or a vacation! It’s important to know that an investment loan or non-purpose loan cannot be used to purchase additional securities or investments, while margin loans can be.
Unfortunately, many brokers and investment platforms have high minimums before they’ll offer you a line of credit and a lengthy application process. You might need at least $25,000 in your investment account to even be offered an investor loan. And you may only be able to borrow a small amount or a small percentage of your investment value. However, MoneyLion members can unlock investor loans at low rates with only $500 in their investment account and borrow up to three times the balance.
What is MoneyLion’s Investor Loan?
MoneyLion has a unique offer available to their members with investment accounts that lets them get the cash they need today while staying invested in their futures! The MoneyLion Investor Loan allows members to borrow against their fully managed investment account — borrowing up to three times the value of the portfolio.
Qualifying members could be eligible for APRs as low as 5.99%. All you need for an Investor Loan is a fully managed MoneyLion investment account, which costs nothing to open and has no minimums or management fees, with at least $500.
What Can You Use a MoneyLion Investor Loan For?
The MoneyLion Investor Loan lets members use the money on almost anything they choose. Some of the more common uses of MoneyLion Investor Loans are:
- Credit card debt consolidation
- Big or small projects
- Major purchases
- Life events such as a vacation or a wedding
- Elective medical
Remember, MoneyLion Investor Loans are non-purpose loans, so they may not be used to purchase securities or use for investing.
Help Yourself Today Without Hurting Your Future
Investment loans differ from personal loans because they have the collateral of your investment portfolio behind them. MoneyLion members can get a MoneyLion Investor Loan for as low as 5.99% APR and receive the funds within two business days.
Investing your extra money is always a good idea because you’re setting aside cash for your future self. But if you need cash now, you don’t need to tap those investments and derail your future. With an investment loan, you can fund your current ventures while continuing to invest in your future.