How to Get a Loan from Morgan Stanley

If you’re wondering how to get a loan from Morgan Stanley, this detailed guide will help you understand your options, eligibility, and the application process.

Does Morgan Stanley Offer Loans?

Yes, but not in the way traditional retail banks do.

Morgan Stanley primarily offers loans to clients with brokerage or wealth management accounts.

These are often securities-based loans, mortgage lending solutions, and custom credit lines rather than unsecured personal loans.

In short, Morgan Stanley provides:

• Securities-Based Lending (SBL)

• Residential Mortgage Loans

• Custom Credit Solutions

• Tailored Lending for High-Net-Worth Individuals

So, if you’re already a client—or plan to become one—Morgan Stanley can be a great source for credit, depending on your financial profile and assets.

1. Securities-Based Loans: The Most Common Option

One of the most accessible lending options at Morgan Stanley is the Securities-Based Loan.

This allows clients to borrow against their investment portfolio without having to liquidate their assets.

Key Benefits:

• No need to sell investments, which helps avoid capital gains taxes.

• Flexible usage: Use the loan for real estate, business investments, tuition, or other personal needs.

• Fast access to funds, often within a few days.

• Competitive interest rates, depending on the size of the loan and client relationship.

How It Works:

• You must have a Morgan Stanley brokerage account.

• The loan is secured by eligible securities in your portfolio (e.g., stocks, ETFs, bonds).

• You can typically borrow up to 50% to 70% of the portfolio’s value, depending on the asset mix.

• Interest is charged monthly, and repayment schedules can be customized.

⚠️ Important: If the value of your portfolio drops significantly, you may receive a margin call, requiring you to deposit more assets or repay part of the loan immediately.

2. Residential Mortgage Loans

Morgan Stanley also offers mortgage lending services for purchasing or refinancing homes. These loans are tailored to high-net-worth clients and can be integrated with your investment strategy.

Types of Mortgages Offered:

• Jumbo Loans: For homes exceeding conforming loan limits.

• Refinancing Options: Including rate and term refinancing.

• Co-Op and Condo Financing: Especially useful in markets like New York City.

• Second Home or Investment Property Loans

Benefits of Morgan Stanley Mortgage Loans:

• Flexible underwriting criteria: Especially helpful for entrepreneurs or those with non-traditional income.

• Dedicated mortgage specialists for personalized support.

• Rate discounts may be available based on your total assets with Morgan Stanley.

3. Custom Credit Solutions

For clients with complex financial needs, Morgan Stanley also offers tailored credit solutions, including:

• Asset-backed lending

• Real estate-backed loans

• Bridge loans

• Credit lines for liquidity planning

These solutions are often structured with the help of your Morgan Stanley Financial Advisor and can be designed to support estate planning, business expansions, or other high-level goals.

Eligibility Requirements

Before you can apply for a loan, you’ll need to meet certain criteria. While Morgan Stanley does not publish strict public guidelines, here’s what you generally need:

• Morgan Stanley account: Almost all loan products require you to be a wealth management client.

• Strong financial profile: High credit score, reliable income, and/or substantial assets.

• Collateral: Most loans are secured—either by securities, real estate, or other eligible assets.

• U.S. residency: Most loans are only available to U.S. citizens or residents.

How to Apply for a Loan from Morgan Stanley

Let’s walk through the step-by-step process of obtaining a loan:

Step 1: Become a Morgan Stanley Client

If you’re not yet a client, you’ll need to open a brokerage or CashPlus account and begin a relationship with a Morgan Stanley Financial Advisor.

This is a requirement for almost all lending products.

Step 2: Meet with Your Financial Advisor

Your advisor will evaluate your:

• Financial needs and goals

• Available assets and investments

• Risk tolerance and repayment ability

Based on this discussion, they will recommend the most suitable loan product—whether it’s a securities-based line of credit or a mortgage solution.

Step 3: Submit the Application

Your advisor will help you prepare and submit a formal application. You’ll typically need:

• Proof of identity (passport or driver’s license)

• Proof of income (tax returns, pay stubs, etc.)

• Asset documentation (portfolio statements, property deeds)

• Credit consent for a hard inquiry

Step 4: Underwriting and Approval

Morgan Stanley’s credit team will review your application.

For securities-based loans, the approval process is often quick—sometimes within 48 to 72 hours.

For mortgage or custom credit solutions, approval may take longer due to property appraisals and underwriting checks.

Step 5: Receive Your Funds

Once approved, your loan funds can be disbursed by wire transfer or direct deposit.

For securities-based loans, funds are usually transferred directly into your brokerage-linked account.

Tips to Improve Your Chances of Approval

To increase your likelihood of loan approval with Morgan Stanley, follow these tips:

• Maintain a strong investment portfolio: The more diversified and valuable your assets, the higher your loan capacity.

• Keep a good credit score: A score above 700 is ideal.

• Minimize existing debt: Lower your debt-to-income ratio before applying.

• Build a relationship with your advisor: They can advocate for your financial credibility during underwriting.

Pros and Cons of Getting a Loan from Morgan Stanley

Pros:

• Access to high loan amounts

• Competitive rates for qualified clients

• Integrated with investment accounts

• Personalized service from a dedicated advisor

Cons:

• Requires substantial assets or account balances

• Not available to the general public without a client relationship

• Most loans are secured, requiring collateral

• Limited options for small or unsecured personal loans

Conclusion

Getting a loan from Morgan Stanley is ideal for individuals with significant assets or those already working with the firm.

Whether you’re looking to access liquidity without selling investments, finance a luxury home, or support a business venture, Morgan Stanley offers custom and flexible credit solutions to meet your goals.

By becoming a client, collaborating with a financial advisor, and aligning your borrowing with your broader financial strategy, you can leverage Morgan Stanley’s elite lending services with confidence and control.

If you’re ready to explore your loan options, start by speaking with a Morgan Stanley advisor today.

Their expertise and tailored approach can help you access the funds you need—while preserving and growing your long-term wealth.