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 installment 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 8%, when you are either repaying your loan using NEXO Tokens or for the part of the loan that is backed by NEXO Tokens (the two cannot be combined). Annual Percentage Rate when not utilizing NEXO Tokens is 16%.
Please note that if you repay a loan within 30 days of the last withdrawal, you will be charged interest for the full 30 days. Repayments will be used to cover the earliest loan withdrawals and to pay off interest before the principal.