Buying shares using a personal loan

Is it possible to get a loan specifically for the purpose of buying stocks?

Hi there,

Swiss lenders generally provide personal loans based on your creditworthiness (income, employment status, and other factors). Because personal loans normally are not secured by collateral, you are usually free to use the borrowed money for whatever you choose. So you can use the money to buy stocks if you choose to.

You can compare personal loans using the interactive personal loan comparison on moneyland.ch.

However, there is no guarantee that the stocks which you buy will gain value to the point that they cover the cost of the loan. In the worst case, your stocks may lose value and you will not recover the money which you borrowed, much less the interest charged. Make sure you understand this and can afford to repay the loan regardless of how your stocks perform.

Lombard loans, which use the stocks you buy as collateral against your debt, are an interesting alternative for investors. These loans are offered by some Swiss brokers. You can find more information about these in the moneyland.ch guide to using lombard loans in trading.

Best regards from Moneyguru

More on this topic:
Swiss online securities brokers compared