Payments and collateral

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:

Mobile

Scroll down and tap Loan statements and agreements.

Computer  

Click Loan statements and agreements on the right menu.

Interest is accrued daily based on the daily interest rate (calculated as 8% 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. 

Your bank account

You can use your linked bank account to receive the funds through ACH. Depending on your bank, funds can typically be available within 1-3 business days.

Learn how to link a bank account.  

Your PayPal

You can choose PayPal to receive your funds for loans up to $10,000, which are funded immediately. 

Note: You can only pay back your loan using your linked bank account or USD balance.You can choose PayPal to receive your funds for loans up to $10,000, which are funded immediately. 

Note: You can only pay back your loan using your linked bank account or USD balance.

You’ll need to pay the interest every month. You can choose when you want to repay your principal. 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 wallet are instant. 

If payment isn’t received by the 20th, Coinbase will sell just enough of your BTC collateral to cover the missed payment, plus 2% of the total transaction. 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.

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. 

Cash (US dollars)

If you have sufficient funds available to cover your monthly loan payment, you can use USD in your Coinbase account to make an immediate payment.

Learn about adding USD funds to your Coinbase account.

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 wallet.  

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 earlier than the loan schedule will result in lower interest payable overall. 

In the case that your loan health falls below 40%, Coinbase will sell just enough of your BTC collateral to bring your loan health to 50%, plus 2% of the total transaction. You can review your loan agreement for details.

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 wallet to a collateral wallet.  BTC collateral can’t be removed from your collateral wallet 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 wallet 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 wallet 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.

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%, plus 2% of the total transaction, without prior notice. We’ll notify you via email and in-app (when available) if this occurs.

If your account's credit health is above 60%, you can withdraw your excess collateral and move it to your BTC wallet. Or if you would like to borrow additional funds, your collateral can be used towards borrowing more.

Some or all of your collateral may be sold off in the three scenarios below:

  1. 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% plus 2% of the total transaction.
  2. 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 plus 2% of the total transaction
  3. If we haven’t received payment by the 15th, Coinbase will sell off enough of your collateral to cover the due amount plus 2% of the total transaction

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 wallet. Please review your Secured line of credit agreement for further details. 

Learn about credit health.

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