Here are some recent published examples:
- At Charles?Schwab?Bank, their “Pledged Asset Line” (a similar product) lists a variable rate of SOFR + 2.40% – 4.40%, converting to approximate APRs of 6.55% – 8.55%, depending on the loan size.
- At The?Bancorp?Bank, one rate-sheet shows variable SBLOC pricing based on the “WSJ Prime” rate plus a margin, with tiers such as WSJ + 1.25% for smaller lines.
- As a general guideline, a financial-education source states SBLOC rates typically follow an index (like SOFR) + spread, and “the more assets you hold … the lower your interest rate may be.”
Key take-aways
- Expect interest rates roughly in the 6% to 9% range for many SBLOCs today, though some high-net-worth clients with large balances may negotiate lower rates.
- Rates are variable for most SBLOCs (though fixed-rate options may exist) and heavily depend on collateral size/quality and the provider’s terms.
- Since SBLOCs are demand lines using your securities as collateral, risks include interest rate increases, and collateral value dropping can trigger calls.
? Caveats
- These rates are examples as published by particular firms — your rate may differ significantly.
- Advance (loan-to-value) percentages and eligible collateral also vary; a lower LTV often yields a better rate.
- You’ll want to confirm if the rate is quoted as APR, whether it includes any discounts or extra fees, and whether the rate is locked or variabl
