You’ve thought about it, right? You’re ready to take a crypto-backed loan.
In case you do not know what a crypto-backed loan is, it is simply a lending service where people can get fiat loans by using their cryptocurrency as collateral.
Naijacrypto has a step-by-step guide to help you navigate the loan module on the app or website.
1. Open the ‘Loan’ page on your app or web.
Log into your account on Naijacrypto, Click the ‘finance’ option on the menu and select ‘loans’.
2. Select the Loan of your choice.
On the loan's home page, there are different loans available depending on the collateral asset which in this case is the BTC you have. The details of the loan will be provided:
-Loan coin (what currency the loan is given)
-Collateral asset (what you are giving to get the loan)
-How to pay: this can be either manual debit (where you pay manually and at your time) or automatic debit (where the interest due at a certain time is deducted from your wallet)
-Liquidation price: (This is the point where Naijacrypto sells off your collateral on their terms to avoid making a loss)
-Payment duration (This is how often the interest on the loan is to be repaid.)
-Loan Tenure (how long the loan agreement lasts)
-Loan repayment method: there are two types of repayment methods. The regular method where you pay the interest according to the duration and pay the principal at the end of the loan tenure and the amortized method where you pay interest and part of the principal amount borrowed per duration depending on the loan tenure.
-Annual Interest rate (interest rate on the loan).
This loan option states that BTC is the collateral asset so you select ‘get now’ to get started with the loan request.
NOTE: It is necessary to read the addendum of Naijacrypto terms and conditions concerning loans. When you’ve done that, click on the box beside "I have read the addendum of Naijacrypto terms concerning loans" and select ‘confirm’.
3. Input the amount you wish to borrow.
On the next page, input how much you want to borrow and you will be shown the collateral amount of your borrowed asset. If you agree with the amount of collateral you’re putting, select ‘get this loan now’.
4. Confirm your loan order.
You will be asked to confirm your loan order when shown the interest rate and how much you are to pay at the end of the loan tenure. If you agree, click ‘confirm’.
5. You have successfully gotten your loan.
After confirmation, wait for admin approval.
You will be taken to ‘your requested loans’ page. Here you see all loans you’ve requested with all the details. The status of the loan tells you if your loan request is pending, rejected, or approved. Once the admin approves it, the status will say ‘approved’ then the Loan amount will be credited to your account and the collateral asset will be debited from your account. Other details such as the total interest to be paid, the loan repayment methods, loan term, etc. are also displayed.
*To pay at the due date
-When it is time to make your payment for the day/week/month, select ‘Loan repayment’ and ‘click ‘view/pay’.
-On the next page select ‘pay now’. By clicking that, you are paying the interest due for the time which is being deducted from your Naijacrypto NGN account.
-Confirm your payment by clicking ‘confirm’ in the pop-up notification on your screen.
-If you ever a missed payment, you will be charged a default fee. You can view your default details when you click on ‘Missed Payments (Defaults)’.
-To know more about the Loans on select ‘Naijacrypto loans’.
It’s really that easy.
You can’t be stranded anywhere. We’ve always got you.
written by Abia Joy