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Nusa Lending Market offers various features to meet the needs of borrowers and investors. One of the features offered is a fixed rate or fixed interest rate. This feature plays an important role in providing clarity and stability in lending transactions between borrowers and investors.
Fixed Rate in Nusa lending refers to an interest rate that remains constant or unchanged throughout the loan period. This means that when a borrower applies for a loan and an investor approves it, the interest rate charged on that loan will remain the same from the beginning to the end of the loan period. This is different from the concept in the lending market with a floating rate, where loan interest rates can change depending on the supply and demand in each crypto market.
To apply for a loan in the Fixed Rate market, you need to have crypto tokens to be added as collateral. Currently, the collateral accepted by the Fixed Rate market is only NUSA tokens. For each loan that will be created, the platform will calculate the loan amount you can apply for based on the value of the collateral you provide. Like conventional loans in general, each loan you apply for will be subject to an interest rate that will be charged at the time of the loan application.
Unlike the Floating Rate market which has fluctuating interest rates, the interest rate in the Fixed Rate market is stable. The platform sets the loan interest rate at 10.5%, and the loan repayment time is flexible without a fixed deadline. In the Floating Rate market, borrowers cannot withdraw their collateral at any time before repaying the loan on the platform.
Advantages of loans in the Fixed Rate market:
- 1.Predictability of Loan Borrowers will have a clear idea of the amount of interest that must be paid when applying for a loan. This allows for better budget planning as there are no fluctuations in interest rates that can affect the amount of loan repayment.
- 2.Financial Stability With a fixed interest rate, borrowers don't need to worry about sudden increases in their payment burden. This helps maintain borrowers' financial stability during the loan period.