M1 Margin Loans vs. M1 Personal Loans
Below we will walk you through Margin Loans, Personal Loans, and the differences between the two products. For further information on individual products offered by M1, please check out M1 Help Center.
Margin Loans vs. Personal Loans
M1 Margin Loans
An M1 Margin Loan is a type of secured loan that allows you to borrow against the value of the securities you already own in your eligible M1 Brokerage Accounts in order to increase your investment buying power. M1 Margin Loans are interest bearing loans that use your underlying securities (e.g. Stocks, ETFs, etc.) as collateral to act as a flexible line of credit when you need it. Using a Margin Loan can add to your investment risks, including the risk of losing the money you invested. If you fail to meet a Maintenance Margin Call* on your account, M1 may be forced to sell some or all of your investments to cover the call.
M1 Personal Loans
An M1 Personal Loan is cash that is borrowed for personal use such as debt consolidation, home improvements, medical expenses, etc. M1 Personal Loans are fixed rate loans, which can protect borrowers from significant fluctuations in monthly payments should interest rates rise. M1 Personal Loans are unsecured and instead of relying on collateral to secure the loan, loans are approved based on the borrower’s creditworthiness.
*A ”Maintenance Margin Call” is issued when the equity in your applicable account associated with your Margin Loan falls below the maintenance margin requirements.
M1 is not a bank. M1 Personal Loans are furnished by B2 Bank NA, Member FDIC and Equal Opportunity Lender, and serviced by M1 Spend LLC, a wholly-owned operating subsidiary of M1 Holdings, Inc.
All investing involves risk, including the risk of losing the money you invest. Borrowing on margin can add to these risks, and you should review the margin account risk disclosures before borrowing. M1 Margin Loans are available on margin accounts with at least $2,000 invested per account. Not all securities are available for M1 Margin Loans and the amount that may be borrowed against a security is subject to change without notice. Available margin amount(s) of M1 Margin Loans may require greater than $2,000 per Brokerage Account. Not available for Retirement or Custodial accounts. Margin rates may vary. Brokerage products and services are offered by M1 Finance LLC, Member FINRA / SIPC, and a wholly owned subsidiary of M1 Holdings, Inc.