Maybe I'm misunderstanding this, but the loan referenced is against real estate rather than against investment securities, correct?
If not, please elaborate upon whether such a loan is one which allows for (non real estate) collateral to produce gains that cover and outpace the interest rate. While also allowing to not make payments on the principle.
If there is another type of loan available using TSLA shares as collateral, and that allows it to continue growing, I'd like to know more about it.
@EL0NTRK said he wanted a loan to purchase real estate, but would not qualify for a mortgage based on income. Banks can also qualify loans using assets instead of income, which are called asset depletion loans. Asset depletion mortgages are just the usual mortgage, except the qualification for the loan is based all or partially on assets instead of just income.
Unlike SBLOCs, which may force liquidation of stocks or reduce margin available for trading, mortgages (asset based or income based), don't affect what someone does with their assets, including stocks and options, because the bank's collateral is the real estate after the loan is granted.
TLDR; Asset depletion loan for a mortgage = competitive interest rates, same terms as a mortgage, does not affect liquid assets so investors can continue to manage assets like stocks, options, etc however they like.