LENDING SOLUTIONS

Line of credit

With a securities-based line of credit, Fidelity makes it simple to use your accounts as collateral to access cash for real estate, tuition or other major purchases.

Unlock the potential of your investment portfolio to meet your borrowing needs.

To get started, speak with a representative.


Give us a call at 1-800-Fidelity and ask for "Line of Credit."

Why borrowing against your Fidelity investment portfolio could make sense

Easy access

When you use your Fidelity accounts as collateral, you'll usually be able to access cash within a few business days.

Competitive rates

No setup, early repayment, or account fees, and our preferred lenders work to offer competitive rates.

Stay invested

Keep your investment portfolio on track, and also avoid having to sell securities, potentially triggering capital gains.

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How we make it easy

  1. Connect with a Fidelity representative

    Have a conversation to review your options. If you decide to move forward, you’ll be directed to an application that takes just minutes to fill out.

  2. Pledge your assets as collateral

    You can use any combination of eligible accounts to pledge toward your line of credit, depending on the amount you’re looking to borrow.

  3. Apply for your loan

    Your application will be reviewed quickly by one of our preferred lenders. Thanks to our streamlined approval process, if you're approved you'll usually have access to funds in a few business days.

  • Eligibility: Typically, clients pledge a minimum of $500,000 in assets as collateral.
  • Flexibility: Use the money for a wide range of purposes—buying or renovating real estate, a wedding, a large item like a boat, tuition, a tax bill, or other large purchase. Please note: Line of credit funds cannot be used to purchase securities.
  • Collateral: Use a wide array of nonretirement assets as collateral, including individual stocks and bonds, mutual funds, ETFs, or cash in your core position.
  • Interest payments: You only make a monthly interest payment if you draw on the line of credit.
  • Fees: There are no application fees, origination fees, annual fees, or repayment fees.
  • Line of Credit Amount: Amount will be determined by the lender, based on the assets you pledge as collateral.

The borrowing rate for the Line of Credit consists of two components:


  1. An interest rate spread ranging from 1.90% to 3.10% in a tiered structure based on the size of your line of credit (Line of Credit Amount).
  2. A variable index charge using the Secured Overnight Financing Rate (SOFR) which moves daily. The SOFR is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities.


Line of Credit Amount Annual Borrowing Rate
$100,000 – $499,999 SOFR + 3.10%
$500,000 – $999,999 SOFR + 2.85%
$1,000,000 – $2,999,999 SOFR + 2.35%
$3,000,000 + SOFR + 1.90%
Interest rates are determined by the credit line size and calculated by adding the variable index (Secured Overnight Financing Rate, "SOFR") plus a spread. Standard rates shown above; each lender independently decides its interest rate tiers and spread.
  • Borrowing costs: If interest rates increase, your payments may also increase.
  • Fluctuating asset values: If the market value of the assets you've pledged decreases, you may be required to pledge additional collateral, repay the loan sooner than you'd like, or surrender the collateral to the lender.
  • Account restrictions: Access to assets pledged as collateral may be limited while the line of credit is active, and money movement requests may require lender approval.

To get started, speak with a Fidelity representative

Give us a call at 1-800-Fidelity and ask for "Line of Credit."

Frequently asked questions

To help you quickly find the answers you need, we've curated responses for the questions we hear most often.

  • Are there any limits to the amount I can borrow with an asset-backed line of credit?

    The size of your line of credit will be limited by the value of the assets you've pledged as collateral and any other restrictions imposed by the lenders. Note that the minimum line of credit amount you can apply for is $100,000.

  • What can I use an asset-based line of credit for?

    Line of credit proceeds can be used for a broad range of purposes, including home renovation or purchase, a vacation, a wedding, a large purchase like a boat, college tuition, or even to cover a large tax bill. Please note that funds cannot be used for the purchase of investments, such as stocks, bonds, or mutual funds.

  • How are my interest payments calculated?

    Interest payments are calculated based on the amount of your line of credit that you have drawn down, multiplied by the interest rate. The line of credit interest rate is a variable interest rate composed of a set spread and a variable component tied to a common industry benchmark rate, such as the Secured Overnight Financing Rate (SOFR). As the benchmark changes, the all-in rate on your line of credit will fluctuate and therefore the calculation of interest payments on your loan will also fluctuate. Interest rates are offered in a tiered structure and will vary based on the amount of the loan commitment. The interest rate you will pay on your line of credit may be higher than the rate you would pay if you dealt directly with the third-party lender; not all banks offer these types of loans directly to the public.

  • Who's lending me the money?

    While Fidelity will help facilitate your line of credit by helping you pledge collateral, your actual loan will be made by one of the lenders with whom we work with, U.S. Bank and Leader Bank. All communications and terms regarding your line of credit, as well as any repayments, will be managed by that lender.

  • Are there any fees associated with establishing a line of credit?

    There are no application fees, origination fees, or annual fees.

  • What kinds of assets can I use as collateral?

    You can use individual stocks and bonds, mutual funds, ETFs, or cash in your core position held in eligible accounts. Note that assets you've purchased on margin or those in retirement accounts like an IRA are not eligible to be used as collateral.

  • What kinds of financial documents will I need to apply?

    In most cases, you will not need to provide additional documentation as part of your application process. When pledging certain types of assets, the lender may require additional documentation in order to make a lending decision.

  • How is a line of credit different from a traditional loan?

    With a loan, you borrow a specific amount and agree to pay it back by a certain time. With a line of credit, you establish an amount that you're able to draw on, which will be based on the amount of collateral you're willing to pledge, and then you draw on that line of credit as you need it.

  • How is this different from a home equity line of credit?

    The biggest difference is what you use as collateral. With a home equity line of credit, you're using the equity in your home, whereas with a securities-backed line of credit you're using eligible assets in your eligible Fidelity accounts. In addition, a home equity line often comes with specific terms governing borrowing and repayment, whereas the required terms for a securities-backed line of credit are generally less stringent, generally allowing you to access and repay funds on your timeline, as long as you maintain adequate collateral in your account to support your line of credit.