How Do Partial Loan Repayments Work?
A partial loan repayment allows you to repay part of your outstanding balance without closing your loan. This can reduce your daily interest charges and lower your Loan-to-Value (LTV), giving you greater flexibility when managing your loan.
What Methods Can I Use to Make a Partial Repayment?
You can make a partial repayment using:
BTC loan collateral: Sell part of the BTC securing your loan and apply the proceeds directly to your outstanding balance.
Stablecoins: Use the USDC, USDT, or USAT available in your Transaction Account.
USD via ACH or wire transfer: Send a USD payment using the banking instructions available in your account.
Availability may vary depending on your jurisdiction.
What Are the Benefits of Making a Partial Repayment?
Lower LTV: A partial repayment reduces your outstanding balance and can help lower the risk of liquidation.
Reduced interest charges: Your repayment first covers any accrued interest and fees. The remaining amount is applied to your loan principal, reducing the daily interest charged.
Flexible timing: You can make partial repayments before your loan’s maturity date without an early repayment penalty.
How Do I Make a Partial Repayment Using BTC Collateral?
You can make an instant partial repayment by selling part of the BTC collateral securing your loan.
Log in to your Ledn account.
Go to the Loans page and select the loan you want to manage.
Click Repay.
Select Repay with your collateral.
Enter the amount you want to repay in USD.
Review the information displayed before submitting the repayment.
The repayment screen will show your current and projected:
Outstanding balance
Collateral balance
Daily interest
LTV and loan status
Review all the information carefully.
Click Submit and authorize the repayment using your MFA method.
Once authorized, the required amount of BTC collateral will be sold and the proceeds will be applied to your loan instantly.
Important: Repayments using BTC collateral are final and cannot be reversed. Always review the repayment amount, BTC amount to be sold, and projected loan information before submitting.
How Do I Make a Partial Repayment Using Stablecoins?
Log in to your Ledn account.
Go to the Loans page and select the loan you want to manage.
Click Repay.
Select USDC, USDT, or USAT as your payment method.
Enter the amount you want to repay.
Review and confirm the repayment by using your MFA method.
The funds will be deducted from your Transaction Account and applied to your loan.
Ensure that your Transaction Account has a sufficient balance before initiating the repayment.
How Do I Make a Partial Repayment via ACH or Wire Transfer?
When submitting your payment, include your Loan ID and repayment instructions in the Reference/Memo field. This information is required so that Ledn can identify and apply your repayment correctly.
You can find your Loan ID on your loan details page and in the loan table.
Log in to your Ledn account.
Go to the Loans page and select the applicable loan.
Click Repay.
Select Wire Transfer as the payment method.
Use the banking details provided to initiate the payment from your bank.
Wire transfers must be sent in USD. Payments sent in another currency cannot be processed and may result in delays.
USD repayments can be made from U.S. bank accounts via ACH or wire transfer. Clients outside the United States must complete their repayment through an international wire transfer in USD.
Important: Do not confirm a full loan repayment in the platform when making a partial ACH or wire repayment. Doing so may cause the system to treat the payment as a loan closure. If you did, please contact Client Success and we will reset the repayment method.
After sending your payment, we recommend submitting your payment receipt or confirmation to our Client Success team. This helps us identify and apply your partial repayment more quickly.
Ledn will never automatically debit your bank account. All ACH and wire repayments must be initiated by you from a bank account held under the same legal name as your Ledn account. Loan Disbursements and Repayments: Same-Name Bank Account Required
What Are the Minimum Partial Repayment Amounts?
Stablecoins: The minimum repayment is 100 stablecoins.
USD via wire transfer: The minimum repayment is $1,000 USD.
BTC collateral: 100 $ or its equivalent in USD.
Repayments that reduce the outstanding loan balance below $500 are not supported.
Are There Any Fees?
Stablecoin: No fee.
USD wire: The receiving bank charges a $6.11 fee for partial repayments, which is deducted from the amount received.
BTC collateral: The transaction details will be displayed for your review before you submit the repayment.
How Long Does a Partial Repayment Take?
BTC collateral: Processed instantly once authorized.
Stablecoins: Processed instantly once confirmed.
ACH or wire transfer: Processing may take several business days, depending on your bank.
Are There Limits on How Often I Can Make Partial Repayments?
There is no limit on how often you can make partial repayments.
Important: Partial repayments are final and cannot be reversed. Always double-check the amount and repayment details before submitting.