Financial flexibility is a key component of managing crypto-backed loans effectively. At Vield, we understand that your financial circumstances can change, offering you the ability to repay your loan early. This guide will walk you through the process of early repayment, ensuring you're equipped to make informed decisions that align with your financial strategy.
Understanding Early Repayment
Choosing to repay your crypto-backed loan ahead of schedule can provide several benefits, including reducing the total interest paid and freeing up your collateral. However, it's essential to understand the implications of early repayment, including any fees that may apply.
Early Repayment Process
- Notification
If you decide to repay your loan early, the first step is to notify Vield of your intention. This can be done through our client portal or by contacting our support team directly.
- Early Repayment Fees
An early repayment comes with a break fee, calculated as the interest that would have accrued from the date of early repayment until the end of that month. If the loan is repaid within the same month it was taken out, the fee will be equivalent to one month's interest. This fee compensates for the interest income foregone due to the early repayment.
- Repayment and Release of Collateral
Upon receiving your early repayment and the applicable break fee, Vield will promptly process the payment and release your collateral. This process is straightforward and designed to be as efficient as possible, ensuring you can access and manage your assets without delay.
Partial Repayments
You're not limited to an all-or-nothing approach. If you find yourself with extra funds, you can make partial repayments on your loan to reduce the principal balance earlier than scheduled, potentially lowering the total interest.
Repayment in Cryptocurrency
In line with our commitment to embrace the digital currency ecosystem, Vield allows borrowers to repay their loans using cryptocurrency as well as traditional currencies like AUD. This option provides convenience and leverages favorable market conditions.
Benefits of Early Repayment
Interest Savings
By repaying your loan early, you may save on the total interest that would have been paid over the loan's original term.
Collateral Freedom
Early repayment means your collateral is no longer tied up, giving you the freedom to manage your crypto assets as you see fit.
Considerations
While early repayment offers benefits, it's crucial to weigh these against the break fee and your financial goals. Vield’s team is always available to discuss your options and help you make the best decision for your situation.
Vield’s flexible approach to crypto-backed loans includes the option for early repayment, providing you with control over your financial journey. Whether you’re looking to save on interest or unlock your collateral, understanding the process of early repayment is essential.
Ready to explore your repayment options or consider paying your loan early? Contact Vield today for personalised guidance and support.
