Securities-Backed Loans:  

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1. Securities-Backed Lines of Credit (SBLOC)

• A revolving line of credit where you draw, repay, and redraw funds up to a limit determined by the Initial Lending Value of your pledged stocks, bonds, or mutual funds. 

• Use Case: Classified as "non-purpose" credit, meaning you can use the cash for almost any personal need—such as buying real estate, paying taxes, or funding a business—except buying more securities.

• Terms: Usually requires monthly interest-only payments with no fixed repayment date for the principal.

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2.  Purpose-Driven Margin Loans

• Definition: A specialized line of credit extended specifically through a brokerage arm to purchase additional securities.

• Use Case: Leveraged trading and expanding an existing investment portfolio.

• Terms: Heavily regulated by central bank rules (like Regulation T in the U.S.), which strictly dictate how much you can initially borrow and maintain for buying equities.

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3. Term Securities-Backed Loans

• Definition: A fixed-amount, lump-sum loan backed by pledged securities rather than a revolving line.

• Use Case: Financing a single, defined large-scale expense, such as a major acquisition, a yacht, or a concentrated real estate purchase.

• Terms: Comes with a fixed repayment schedule comprising both principal and interest amortized over a set period