E*TRADE Line of Credit

Real estate. Home remodeling. Business opportunities. An E*TRADE Line of Credit is a flexible, securities-based financing alternative that lets you raise cash without selling investments.1

What is an E*TRADE Line of Credit?

It's a flexible source of ready cash that uses the eligible investments in your E*TRADE accounts as collateral.

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Easy access to cash

Borrow against eligible investments in your portfolio (up to 50% of their value2) with a minimum collateral requirement of $50,0003

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Low interest rates

Enjoy annual percentage rates that are lower than many other sources of credit, with no hidden fees4

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Fast decisions

Apply online in minutes. Once approved, cash can be deposited into your designated bank account within two business days.

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Flexible repayment

Choose from monthly payment options, or defer payments with interest automatically rolling into your principal balance

How can an E*TRADE Line of Credit help you?

Access cash for virtually any personal or business financing need without disrupting your long-term investment plans.*

Education costs

Pay student loans or college tuition

Real estate purchases

Raise your cash offer or buy properties

Home improvements

Finance renovations and remodeling

Tax bills

Make quarterly or annual tax payments

Business opportunities

Launch or expand a business

Luxury goods

Buy a new automobile, boat, or jewelry

* Proceeds may not be used to purchase securities, pay down margin loans, or be deposited into any brokerage account.

Enjoy affordable interest rates

Now until December 31, 2019, you'll receive a 0.50% reduction on your interest rate when you open a new E*TRADE Line of Credit.1

Pledged Collateral Market Value Interest Rate
Index plus Spread5
Promotional Interest Rate Spread6 APR7
$10,000,000+ 1 Month LIBOR + 2.000% 1.500% 3.586%
$5,000,000 $9,999,999 2.250% 1.750% 3.840%
$2,500,000 $4,999,999 2.500% 2.000% 4.093%
$1,000,000 $2,499,999 2.750% 2.250% 4.347%
$500,000 $999,999 3.250% 2.750% 4.853%
$250,000 $499,999 3.625% 3.125% 5.234%
$100,000 $249,999 4.250% 3.750% 5.867%
$50,000 $99,999 4.750% 4.250% 6.374%
< $50,000 5.250% 4.750% 6.881%

Get started today

Applying for an E*TRADE Line of Credit account is easy and only takes minutes. Once approved, cash can be deposited into your designated bank account within two business days.

Apply online

Line of Credit FAQs

See all FAQs

What are the risks of an E*TRADE Line of Credit?

Securities-based lending involves special risks and is not suitable for everyone. Be sure to carefully review product details, risks and benefits to ensure this product is right for you.

  • A decline in the value of your pledged collateral may require you to provide additional funds or securities to avoid a maintenance call.
  • You can lose more funds than are held in the collateral account. An E*TRADE Line of Credit account is a full-recourse loan and you will be held liable for any deficiency.
  • E*TRADE Savings Bank can force the liquidation of any securities pledged as collateral, and can do so without contacting you first. You are not entitled to choose which securities in the collateral account are liquidated.
  • E*TRADE Savings Bank can modify its collateral maintenance requirements at any time, without notice to you.
  • You are not entitled to an extension of time to resolve a maintenance call.
  • If your assets are liquidated by the bank, there may be adverse tax or other consequences.
  • An E*TRADE Line of Credit is an uncommitted demand facility, which means the bank may demand full or partial repayment at any time or elect not to advance funds.

How is an E*TRADE Line of Credit different from margin borrowing?

An E*TRADE Line of Credit is different in two ways: (1) the way in which the funds are used, and (2) the interest rates on the line of credit.

  • How the funds are used:
    • For an E*TRADE Line of Credit, funds can be used for any lawful purpose, except for the purchasing, carrying, or trading of securities or repayment of a margin loan.
    • Margin can be used for any lawful purpose, including the purchasing, carrying, or trading of securities.
  • Interest rates:
    • E*TRADE Lines of Credit are tied to 1-month LIBOR (London Interbank Offered Rate), as published in The Wall Street Journal the ("Index"), plus a spread ("Margin"). Line of credit interest rates are typically lower than margin interest rates, and may move with changes to the 1-month LIBOR rate or fluctuations in the pledged collateral market value.
    • Margin interest rates are typically tied to the E*TRADE Base Rate, which is set at the discretion of E*TRADE Securities with reference to commercially recognized interest rates. Margin interest rates may move with changes in the E*TRADE Base Rate, or with adjustments in the debit balance.

What account types are eligible to be pledged as collateral for an E*TRADE Line of Credit?

Non-retirement accounts including individual, joint, and revocable trusts with no more than two trustees, inclusive of managed portfolios, may be pledged as collateral.

Are there restrictions on my account(s) once pledged as collateral for an E*TRADE Line of Credit?

Yes, there are restrictions on accounts pledged as collateral:

  • No margin borrowing. Funds cannot be used for purchase, carrying, trading of securities, or repayment of a margin loan.
  • No margin and options trading. Upon being approved for an E*TRADE Line of Credit, the collateral account(s) will have margin and options trading capabilities removed (if applicable). Pledged accounts will also be prohibited from enrolling in margin and/or options trading.
  • Cash management and payment features disabled. Upon taking a draw from your line of credit, all cash management and payment features will be restricted (e.g., bill pay, check writing, use of debit card, electronic funds transfers, wires).

If you would like to withdraw cash and/or securities from a pledged account, please call us at 800-ETRADE-1 (800-387-2331) for assistance.

What happens if market fluctuations lead to a decline in collateral account value?

In this situation, you may be required to deposit additional cash or securities as collateral to maintain your original collateral amount. Failure to do so may result in E*TRADE selling some or all of your pledged securities, which may result in adverse tax consequences.