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Does loan collateral also earn interest?
Does loan collateral also earn interest?

No. You can’t use the same asset as collateral and earn interest on it simultaneously.

Sofia avatar
Written by Sofia
Updated over a week ago

You can use an asset to either earn interest or secure your loan. You can’t do both simultaneously.

When you use an asset as collateral to get a loan, it becomes locked in your Wallet until you repay your loan in full. When you have repaid your loan in full, the collateral amount is unlocked, and you can deposit it to Fixed or Flexible Account to earn interest.

Nevertheless, if your asset is already locked as collateral, you can make a Full Early Repayment to unlock it. Check our loan repayment instructions here.

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