Although the Nexo loan may seem similar to a term loan since it’s collateralized by an asset (cryptocurrency in our case), they are not the same. Usually, a term loan has fixed monthly or quarterly instalment payments. With the Nexo loan, you can manage your repayments the way you like, including repaying early without penalty fees or not repaying until the collateral crypto-asset meets your target price.
The Nexo loan has a fixed Annual Percentage Rate (APR), which starts at 6.9% when at least 10% of the value of your portfolio balance (crypto, stablecoins and fiat) is in NEXO Tokens. In other words, you are in the Platinium tier of our Loyalty Program.
The Annual Percentage Rate when not utilizing NEXO Tokens is 13.9%.
Please note that if you repay a loan within 30 days of the last withdrawal, you will be charged interest at the standard APR of 13.9% for the full 30 days regardless of your current loyalty level. This is in order to prevent improper use of the Nexo Platform and to safeguard Nexo as a company, but more importantly, our clients and investors.