Margin loan against your stock is more like a line of credit. Once you upgrade your brokerage account to include margin loans you're allowed to borrow up to, s

Margin loan against your stock is more like a line of credit. Once you upgrade your brokerage account to include margin loans you're allowed to borrow up to, say, 40% of the value of your stock (I simplify, the exact rate is dynamic). Say you have $1 million in stock. You're allowed to borrow up to $400k. You have a line of credit of $400k. Say you borrow $100k. And in this context "borrowing" is simply transferring money from your brokerage account to your bank account. There's no additional paperwork as in most loans. Let's say over 5 years you accumulate $10k interest (interest rates are really low, can be below 2% right now). You don't have to "repay" that $10k or the principal. You now owe $110k which is well below $400k limit. It's a line of credit, you can still borrow additional $290k. In the limit that line of credit would only have to be settled when you die.