It’s time to up the ante on our Nexonomics 3.0 releases. If you’re ready for the new feature just scroll down. Oh, and quick heads up: this one’s not a promo, it’s a permanent fixture on the platform.
Today our Instant Crypto Credit Lines™ are getting a new feature: 0% Borrowing Rates. Powered by none other than the NEXO Token and its respective Loyalty tiers, the new zero-cost credit gives Gold and Platinum clients rates as low as 0% when maintaining an LTV of 20% or below.
0% Interest: Platinum users get zero-cost credit when their LTV is below 20%.
1.9% Interest: Gold users get a premium low-cost rate when their LTV is below 20%.
Flexible: You’re free to go back and forth between the new 0%-1.9% rates or borrow a larger amount using an LTV higher than 20% at our standard rates.
Tip: For assets like the NEXO Token, where the permitted LTV is already below the 20% threshold, clients will automatically get our 0% or 1.9% borrowing rates for the Platinum and Gold Loyalty tiers.
You also get all the benefits of our Instant Crypto Credit Lines™: instant approval, the option to borrow as little as $50 to as much as 2 million, top-tier insurance, and no origination fees, credit checks or monthly installments.
Borrowing Rates by Tier
For the Base and Loyalty tiers borrowing rates remain the same. The Gold and Platinum tiers, however, are where the magic happens. Check it out:
LTV ≤ 20%: 0.00% APR
LTV >20%: 6.90% APR
LTV ≤ 20%: 1.90% APR
LTV >20%: 8.90% APR
What If My LTV Is Higher Than 20%?
You can still borrow at higher LTV ratios than 20% and get some of our best rates which start from just 6.9%.
What’s more, our Instant Crypto Credit Lines™ are extremely flexible and you can go back and forth between our zero-cost credit and our standard rates.
For example… If you’re in the Gold or Platinum tiers and you’re using Bitcoin as collateral and initially take out a smaller loan that keeps your LTV under 20%, you’ll accrue interest at 0% or 1.9%. Then you decide to take out more credit against the same amount of BTC raising your LTV above 20% (remember you can take out a loan of up 50% of the value of your BTC on Nexo), you’ll be charged our normal interest of 6.9% or above depending on your Loyalty tier.
The reverse also works. If you take out a larger amount of credit initially and then either add more collateral or repay part of your credit line to get your LTV under 20%, you’ll be moved from our regular Platinum and Gold rates to the new zero-cost options.
How to Open a 0%-1.9% Interest Credit Line
Become a Gold or Platinum tier client.
To do this you must have enough NEXO Tokens in your account for the ratio of NEXO to all the other assets in your Portfolio to be above 10% for the Platinum tier and 5% for the Gold tier. For more information, check out our dedicated article.
Tap the “Borrow” button on your home screen and enter the credit amount you would like to withdraw as well as the withdrawal currency.
Enable the 0% or 1.9% interest rate through the toggle button right under your desired withdrawal amount.
When this toggle button is enabled and you finalize your credit request, the system will automatically move enough collateral into your Credit Line Wallet for your LTV to be under 20%. Also, keep in mind the toggle won’t show up if you’ve entered a withdrawal amount that will bring your LTV above 20% even when using all the assets in your account as collateral.
What If I Already Have An Open Credit Line?
If you already have an open credit line before December 2 and were accruing interest at our standard rates – 6.9% for Platinum and 8.9% for Gold users – your borrowing rates will automatically be lowered if your LTV is under 20%.
Hint: If you’ve already borrowed at a higher LTV, you can always add a little extra collateral to your Credit Line Wallet to get our low-cost and zero-cost rates.