Renewing and refinancing your loan
At Ledn, you can keep your loan going without disruption. When your loan reaches maturity, it can renew automatically into a new 12-month term. You can also refinance into a new loan before maturity to adjust your terms or lock in current rates. As long as your loan is eligible, both happen smoothly, and you keep your Bitcoin throughout.
Important update, effective January 1, 2027
Starting January 1, 2027, clearing your accrued interest and fees ("Accrued Fees") in full becomes a condition for your loan to renew or refinance into a new term.
Your principal rolls over. You are not required to repay any outstanding principal to renew or refinance. It continues into a new 12-month term.
No monthly payments. Interest still accrues daily and together with accrued administration fees, must be paid in full to renew or refinance.
You can read the full 2027 update guide here.
What makes a loan eligible for renewal or refinancing
To renew automatically at maturity, or to refinance into a new 12-month term before maturity, your loan must meet all three of the following:
Eligible jurisdiction. You reside where Ledn loan products are supported and your loan meets any applicable product conditions (for example, minimum loan amount). See the list here.
LTV below 65%. Your loan-to-value ratio is below 65%.
Accrued Fees cleared. All accrued interest and administrative fees are paid in full. This condition takes effect January 1, 2027.
For refinancing ahead of maturity, your loan must also have been active for at least 30 days.
What happens at maturity
Scenario 1 - All three conditions met. Your outstanding principal renews automatically into a new 12-month term at currently posted market rates. There is nothing for you to do.
Scenario 2 - Accrued Fees unpaid, or LTV at or above 65% (in an eligible jurisdiction). An automatic backstop applies. Ledn first uses any stablecoin balance in your Transaction account toward your Accrued Fees, then sells the minimum amount of BTC needed to cover the rest and, if necessary, to bring your LTV down to 64%, so your remaining principal can still renew into a new term. We give you advance notice before this happens.
Scenario 3 - Ineligible jurisdiction. Your loan will not renew automatically. See "If your loan is not eligible" below.
Your renewed or refinanced loan may carry a new administrative fee and interest rate, based on Ledn's pricing then in effect for your loan amount.
How to pay your Accrued Fees
You can clear your Accrued Fees on or before your maturity date in any of these ways. Available options may vary by region, please see this article for more information.
Automatic stablecoin deduction (recommended). Keep enough stablecoins in your Transaction account at maturity, and Ledn applies that balance to your Accrued Fees automatically, so your loan renews seamlessly.
Ledn Trade. Convert other digital assets to USDC, USAT or USDT before maturity.
Borrow against new BTC. Post new BTC collateral to take a new loan, directing the proceeds to your stablecoin Transaction account to cover your fees.
Borrow against existing collateral. Release collateral from an existing loan at maturity (up to 50% LTV) to fund a new loan that clears your fees.
USD bank wire. Allow up to 5 business days for processing before your maturity date.
How to lower your LTV
If your LTV is at or above 65%, you can bring it below 65% before maturity by:
Adding more BTC collateral.
Making a partial loan repayment.
Refinancing before maturity
You can refinance a loan once it has been open for at least 30 days. Refinancing lets you adjust your terms and secure updated rates based on currently posted pricing. The same conditions as above apply in order to be eligible for refinancing prior to your loan’s maturity date.
Refinancing or renewing does not release additional fiat or unlock collateral automatically.
If your loan is not eligible
Automatic renewal will not occur if you are located in a jurisdiction where Ledn loans are restricted or product conditions are not met. Regional status can change over time, so please check the eligibility page regularly.
If your loan is not eligible for automatic renewal and you do not repay it manually, it will be liquidated on its maturity date at 11:59 PM (system time). There is no grace period beyond your maturity date, so please take action before then.