To allow for a broader and vast utilisation that meets the dynamic demands of the crypto space, we offer our Borrow product not only in 40+ fiat currencies but in stablecoins as well – USDT, USDC and BUSD. It is important to note that, unlike fiat loans, loan withdrawals in stablecoins will be automatically placed into your Nexo wallet. The respective balance will be immediately updated, and you will then be able to either convert the assets on our exchange or withdraw them to an external wallet. Keep in mind that the number of free withdrawals depends on our loyalty tier, as explained in this article.
Tip: BUSD transfers over the Binance Smart Chain network are Fee-free and do not count towards the number of free withdrawals applicable to your loyalty tier. The same applies to USDT withdrawals over Polygon.
Taking out a loan from Nexo is pretty straightforward. All you need to do is log into your account, locate the Borrow section on the main page and follow the easy and intuitive steps:
1. Pick one of the three available stablecoin currencies.
2. Type in the amount you would like to borrow and choose whether you would like to opt for a Zero-Cost loan. Keep in mind that the Zero-Cost toggle will be turned off by default. Enabling it will indicate the system to lock up sufficient collateral so your Credit Line wallet LTV afterwards is below the 20% threshold.
3. Please also keep in mind that you need to agree to the Nexo Crypto Credit General Terms and Conditions in order to submit your loan withdrawal request.
4. Once you have agreed to the terms, the ‘Withdraw’ button will become active and you will be free to proceed by clicking on it.
5. After that, you will be prompted to confirm your loan withdrawal via the Two-Factor Authentication code that is usually delivered to your mobile device by SMS or through an authentication app.
6. Congratulations! You have successfully taken out a loan in a stablecoin, and your USDT, USDC or BUSD balance on your Nexo account has been updated automatically to reflect the new amount.
You should also know that:
- Interest is added to your outstanding balance daily at 00:00 CET
- The interest applied to your loans is compound interest i.e. it is calculated based on both the initial principal and the accumulated interest
- The minimum interest charge is 0.01 USD