How does Investment Lending work?

A margin loan is an investment loan (or line of credit) that is secured by shares, managed funds or cash. You can use the borrowed funds to access a greater range of investment opportunities enabling you to increase the size and diversity of your investment portfolio. By having additional funds, investors can build a more balanced and diversified share portfolio, which lowers the risk that poor performance in a particular sector will lower total returns.

These strategies can be used to expand your portfolio, create additional investment income and seek growth from domestic and international opportunities.

What we offer

We offer purpose-designed loans enabling you to capture market opportunities in shares, listed and unlisted funds. Our range of investment loans are tailored to varying investor needs and risk profiles.

Margin Loans

Investors can borrow funds to invest across a range of approved domestic and international investments.

Super Lever

A margin loan customised for self-managed super funds (SMSFs), enabling SMSF Trustees to borrow to invest in shares, exchange traded funds (ETFs) and managed funds.

Equity Builder

A principal and interest style loan used to acquire managed investments. Typically these are ETFs or unlisted managed funds, with the benefit of no margin calls.

Protected Equity Loans (PELs)

Protected equity loans (PEL) enable you to borrow up to 100% of your investment into ASX listed shares with protection at maturity and no margin calls. PELs provide you leveraged exposure to an increase in the price of your chosen shares, ordinary cash dividends and franking credits, while limiting your exposure to a falling share price at expiry. 


Investment Lending, which involves borrowing funds to invest in various assets, offers several potential benefits.

Potential for greater returns

By borrowing additional funds, investors can increase the size of their investment portfolio, potentially magnifying returns if the performance of their investments outweighs the cost of borrowing. 

Liquidity and diversification

Access to more funds enables greater portfolio diversification. Having additional funds on hand also gives investors the flexibility to invest when they think the time is right without needing to liquidate existing investments.

Tax advantage

Typically, interest paid on borrowed funds for investment purposes may help reduce your taxable income. By avoiding selling one asset to buy another, you may also defer capital gains tax.


Investment Lending, while offering potential benefits, also carries several key risks that investors should be aware of.

Amplified losses

Just as the value of your investment can increase, so can your losses if the value of your portfolio falls.

Margin risk

Some loan types require loan-to-value ratios to be maintained. This means in the event of a market correction or corporate failure, you may need to inject more capital or sell down part of your portfolio to restore your loan ratio.


Interest rates risk

There may be an increase in borrowing costs due to interest rate increases.


Investment Lending profile

We match your investment capability with loan instruments designed to meet your long-term goals.

Eligibility requirements

  • You must be a resident in Australia
  • Minimum investment loan amount varies by loan type.

Investment type

  • Investment loan facility

Return profile

  • Income
  • Capital growth

Investment horizon

  • Varies depending on the loan type you choose

To further explore Investment Lending, you can contact your investment specialist or call our Investor Desk.

You can also apply online for an investment loan, opens in new window.

Investment Lending explained: A deep dive into property vs shares

When it comes to Investment Lending, many Australians are familiar with using borrowings to purchase an investment property. Fewer are familiar with the ability to borrow to invest in shares. This article dives into the benefits and risks of borrowing to invest in both asset classes.

Explore private investment insights

Discover more about borrowing to invest from our experts.

Contact us

Talk to a specialist

To explore investment opportunities, contact your investment specialist or call our Investor Desk.

Call us on 1300 683 106


Email a specialist

Send us an email enquiry and one of our team members will get back to you.

Email us

For insights and research

Discover the latest thinking on investment insights, strategies and market commentary.

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Terms and Conditions

The information on this website is general in nature and based on information available at the time of publishing, information which we believe is correct and any forecasts, conclusions or opinions are reasonably held or made as at the time of publishing. The information does not constitute financial product or investment advice. Past performance is not necessarily indicative of future results. No warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither National Australia Bank Limited ABN 12 004 044 937, Australian Credit Licence and AFSL No. 230686 or any of its related entities accept liability to any person for loss or damage arising from the use of this information.

You should consider the relevant Product Disclosure Statement and Financial Services Guide (available on request) before deciding whether to acquire, or to continue to hold, any of our products. Target Market Determinations for these products are available at and, opens in new window. Fees and charges are payable. Terms and conditions apply and are available on request from NAB. Our credit products are subject to eligibility and lending criteria.

All products and services mentioned on this website are issued by National Australia Bank Limited ABN 12 004 044 937, Australian Credit Licence and AFSL No. 230686 (NAB), except wealth advice services, which are provided by JBWere Limited ABN 68 137 978 360 AFSL No. 341162 (JBWere), and nabtrade, which is the information, trading and settlement service provided by WealthHub Securities Limited ABN 83 089 718 249 AFSL No. 230704 (WealthHub Securities). JBWere and WealthHub Securities are wholly owned subsidiaries of NAB.

WealthHub Securities’ and JBWere’s obligations do not represent deposits or other liabilities of NAB. NAB does not guarantee its subsidiaries’ obligations or performance, or the products or services its subsidiaries offer. You may be exposed to investment risk, including loss of income and principal invested.

Information correct as at January 2024.

©2024 NAB Private Wealth is a division of National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686. ©2024 JBWere Limited ABN 68 137 978 360 AFSL No. 341162. ©2024 WealthHub Securities Limited ABN 83 089 718 249 AFSL 230704.