Pledged Asset Line of Credit: Complete Guide for 2026

Pledged Asset Line vs SBLOC: Same Product, Different Labels

A pledged asset line of credit (PAL) and a securities-backed line of credit (SBLOC) are the same financial product. You pledge investment securities as collateral and receive a revolving line of credit. The naming varies by brokerage: Fidelity and Schwab call it a "Pledged Asset Line," Morgan Stanley calls it a "Liquidity Access Line," Goldman Sachs brands it "GS Select."

Focus on rate, advance rates, minimums, and maintenance call policies — not the name.

How a Pledged Asset Line Works

You pledge eligible securities. Stocks, bonds, ETFs in your taxable brokerage account are placed under a lien. You retain ownership and continue receiving dividends.

The lender sets a credit limit. Typically 50% to 90% of portfolio value depending on asset composition.

You draw funds as needed. Wire transfer, ACH, or check. You only pay interest on what you borrow.

You pay interest only. No fixed repayment schedule. Repay and redraw freely without reapplying.

Who Offers Pledged Asset Lines in 2026

• Fidelity — Pledged Asset Line: $100,000 minimum. ~SOFR + 2.0% to 3.0%.
• Charles Schwab — Pledged Asset Line: $100,000 minimum. ~SOFR + 2.2% to 3.2%.
• Morgan Stanley — Liquidity Access Line: $250,000 minimum. ~SOFR + 1.5% to 2.5%.
• Goldman Sachs — GS Select: $250,000 minimum. ~SOFR + 1.5% to 2.5%. Fixed-rate tranches available.
• Interactive Brokers: No hard minimum. ~SOFR + 1.0% to 2.0%. Lowest posted rates.
• UBS — Credit Line: $250,000 minimum. ~SOFR + 1.5% to 2.5%.

See our SBLOC rates by broker guide for full details.

Pledged Asset Lines vs Margin Loans

Pledged asset line: Non-purpose loan. Use for real estate, business, tax payments — NOT securities purchases. Not subject to Reg T. Rates 5.5–7.5%.

Margin loan: Purpose loan for buying securities. Subject to Reg T (50% initial, 25% maintenance). Rates 8–13%.

The cost difference on a $500,000 draw can exceed $15,000 per year.

Key takeaway: If someone suggests a "pledged asset line," "liquidity access line," or "securities-backed line of credit," they are describing the same product. Ask about the rate, advance rates, and maintenance call policy — those are the details that matter.

How to Apply

1. Verify eligibility. $100K+ in eligible taxable securities. Review full requirements.
2. Choose your lender. Get quotes from 2–3 firms.
3. Complete application. 10–20 minutes online. SSN, employment info, account to pledge.
4. Sign credit agreement. Read maintenance call section carefully.
5. Receive credit line. 3–7 business days. IBKR often approves in 24–48 hours.

Key Terms to Watch

• Demand feature: Lender can technically call the entire balance at any time.
• Cross-collateralization: Some agreements apply pledged assets against other debts at the same institution.
• Annual fees: Most charge none. Some premium services charge $75–$250/year.
• Rate reset frequency: Monthly or quarterly. Confirm which.

Tax implications matter — see our SBLOC tax guide.