A stockholding loan against securities is a type of loan where borrowers pledge their securities, such as stocks, bonds, or mutual funds, as collateral to secure funds from a lender. The borrower retains ownership of the securities but temporarily transfers them to the lender until the loan is repaid. These loans typically offer lower interest rates compared to unsecured loans due to the reduced risk for the lender. Borrowers can use the loaned funds for various purposes, including investment, debt consolidation, or personal expenses. However, failure to repay the loan may result in the lender liquidating the pledged securities to recover the debt.