Where can I find details about my loan terms?
You can download your loan agreement under Loan statements and agreement after you’ve signed into https://www.coinbase.com/borrow.
Once you’re signed in:
Scroll down and tap Loan statements and agreements.
Click Loan statements and agreements on the right menu.
How can I repay my existing loan?
When you log into your borrow dashboard, you will see a banner that provides you with the option to close your loan, this will take you to a flow to pay back the entire balance of your loan.
If you would like to pay back your loan using more than one payment method you can select “Make A Payment” on mobile or “Make a Custom Payment” on web to make a payment of a custom amount.
It’s important to take the following things into consideration when paying off your loan through ACH.
Repayments will be subject to your bank purchases/deposits account limits.
If you have an outstanding balance that is over your account limit, you will need to opt to pay a “Custom amount” then pay back your loan over the course of a few days.
Your account limit will be the sum total of all of your transactions on the coinbase platform, so any buys that you use your bank account to fund will count towards that limit as well.
Paying by ACH can take up to 5 business days. Make sure that you have planned for this time to fully pay off your remaining balance before November 20th to prevent your collateral from being liquidated.
You will only see the option pay back your entire loan and you do not have the full amount in your Cash Balance. To make sure you have enough you can add cash to your account.
To use your collateral balance to liquidate your loan, you need enough collateral balance to fund the entire loan. To select this option select “Close Loan” from the banner at the top of the borrow dashboard, then select “entire balance” and choose Collateral balance.
Once you have paid through your collateral balance, you may see a small remaining outstanding balance that is the result of slippage. To pay the final remaining balance back you can go through the payback flow a final time.
For large balances, you can opt to fund your account using a Bank Wire to add cash to your account. Once the transaction has been processed and you have cash in your Coinbase account select “Close my loan” at the top of your Coinbase Borrow dashboard to repay your loan using your cash balance. Paying by wire can take up to 5 business days. Make sure that you have planned for this time to fully pay off your remaining balance before November 20th to prevent your collateral from being liquidated.
How is interest calculated and accrued?
Interest is accrued daily based on the daily interest rate (calculated as APR divided by 366) and the outstanding principal amount on your loan. On the 1st of each month, the accrued interest from the prior month is charged to your account.
Any amount paid before the 1st of each month will be automatically applied to the principal loan amount, which will in turn lower your interest payments overall.
Please refer to your Borrow dashboard for your current APR.
When are my repayments due?
All repayments are due by November 20th, 2023. Until this date, you can continue to pay your loan back on a standard schedule.
For Line of Credit customers
You’ll need to pay the interest every month. Your principal is due on your credit line repayment date, but you can choose to repay earlier without any penalties. Interest will continue to accrue on unpaid principal.
If you’re using a bank account for payment, we highly recommend that you make your monthly payments between the 1st and by the 15th each month to avoid late payment and the sale of your BTC collateral, since banks can take 3-5 business to process your transaction. Payments made through your linked USD balance are instant.
If payment isn’t received by the 20th, Coinbase will sell just enough of your BTC collateral to cover the missed payment. You can review your loan agreement for more details.
Your monthly payments are always due on the 15th of each month. We will send you a monthly billing statement on the 1st of each month that shows the amount due later that month.
For Fixed Term Loan customers
If you’re using a bank account for payment, we highly recommend that you make your monthly payments between the 1st and by the 10th each month to avoid late payment and the sale of your BTC collateral, since banks can take 3-5 business to process your transaction. Payments made through your linked USD balance are instant.
If payment isn’t received by the 15th, Coinbase will sell just enough of your BTC collateral to cover the missed payment. You can review your loan agreement for more details.
Although your monthly payments are due on the 10th of each month, your first payment will be due no less than 30 days after your loan is approved. For example, if you’ve taken out a loan on March 17th, your first payment wouldn’t be due on the 10th of the next month (April) since that would be within 30 days from the date the loan was approved. Instead, your first payment would be due on the 10th of May.
What payment methods can I use to make my monthly payments?
Bank account (ACH)
You can use the bank account associated with your Coinbase account. Because ACH processing takes 3-5 business days, we recommend you pay between the 1st and 15th of each month to avoid your BTC collateral being used as the payment method.
If you’d like to add a new bank account to receive your loan or to make your payments, please be aware that verifying new bank information may take a few days.
How do I make my repayments?
Monthly interest payments can be made by signing into your Coinbase account through a computer or your Coinbase app using either the bank account associated with your Coinbase account, or cash from your USD balance.
What about early payments?
Payments received before the 1st of each month will be applied to the principal loan amount, and not the monthly interest due. There is no penalty fee for early payments.
Paying off your principal balance before the credit line repayment due date or the loan repayment due date will result in lower interest payable overall.
Any additional fees?
Coinbase is waiving all additional fees as Coinbase is in the process of closing Coinbase Borrow over the coming months.
What is collateral?
Collateral is the Bitcoin (BTC) in your Coinbase account that is securing your loan. When you borrow from Coinbase, the required BTC collateral amount is moved from your BTC balance to a collateral balance. BTC collateral can’t be removed from your collateral balance until the line of credit is paid off in full.
Only BTC can be counted as collateral towards your loan. No other cryptocurrency is eligible to be used as collateral.
You can add to your collateral balance at any time by visiting the Borrow homepage and selecting Add collateral. If you have BTC in an external wallet, you can transfer it to Coinbase and then add it to the collateral balance via the same steps.
Note: Coinbase holds this BTC until the line of credit is fully repaid, and may use some of the BTC to recoup amounts payable under your secured line of credit agreement in the event that your account's credit health falls below 40%, or you miss a payment.
When do I need to add collateral?
If your account's credit health falls below 40%, you’ll typically have 72 hours to add BTC collateral or make a payment. In the rare case that your account's credit health falls below 15% (where the value of BTC drops dramatically), Coinbase will sell off just enough of your BTC collateral to bring its health back to 50%, without prior notice. We’ll notify you via email and in-app (when available) if this occurs.
When can I withdraw my collateral?
If your account's credit health is above the initial level (60% for line of credit or 70% for fixed term loans), you can withdraw your excess collateral and move it to your BTC balance.
In what event will my BTC collateral be sold off?
Some or all of your collateral may be sold off in the three scenarios below:
If your account's credit health drops below 40%, you typically have 72 hours to add more BTC collateral or make a payment towards principal to bring its health back to 50%. If you take no action, Coinbase may sell off some of your collateral to bring loan health back to 50%.
In the rare case that your loan health falls rapidly to below 15%, Coinbase may sell off your collateral to bring you back to 50% without prior notice.
If we haven’t received payment by the 15th, Coinbase will sell off enough of your collateral to cover the due amount.
If you violate the terms of your Loan Agreement and/or the Coinbase User Agreement, we may close your account and sell your collateral to cover your outstanding balance.
In the rare event that there is insufficient BTC collateral in your account to repay your line of credit, Coinbase may also sell any other cryptocurrency held in your Coinbase primary balance. Please review your Secured line of credit agreement for further details.
Learn about credit health.