Lending FAQs | Unocoin
What is Lending?
- Lending (also known as financing) allows you to borrow funds by pledging your crypto as collateral. You receive a loan (in USDT) and repay it with interest over time.
How does Lending work on Unocoin?
- On Unocoin, verified users can:
- Pledge Bitcoin (BTC) as collateral
- Borrow USDT instantly
- The loan remains active until fully repaid.
What loan options are available?
- EMI Loan – Fixed monthly repayments
- Flexi Loan – Pay anytime with flexible repayment
What is the Monthly Repayment Date?
- For EMI loans, you can choose a repayment date between the 1st to 20th of each month.
What is Collateral Amount?
- Collateral is the crypto (BTC) you pledge to secure your loan. Its value is always higher than the loan amount.
What is the Loan-to-Value (LTV) ratio?
- LTV = Loan Amount ÷ Collateral Value. It determines how much loan you can take against your crypto.
How do I fund my loan account?
- You can:
- Transfer BTC or USDT to your lending wallet
- Funds will automatically be used for EMI payments or loan repayment
Can I withdraw funds from my loan account?
- Yes, but only if:
- Your balance exceeds the required dues
- If the balance is enough to close the loan, the loan may auto-close (Flexi loans)
What happens if the crypto price increases or decreases?
- If price drops – You may receive warnings
- If it drops further – Risk of liquidation
- If price increases – Your collateral becomes safer
What is Liquidation?
- Liquidation happens when collateral value falls below the threshold or the loan is not repaid on time. Your BTC is sold to recover the loan amount.
How will I know if my loan is at risk?
- You will receive:
- Email notifications
- Alerts when collateral reaches risk levels
How can I avoid liquidation?
- You can:
- Add more collateral (BTC)
- Repay part of the loan
What happens if I cannot repay the loan?
- Penalties and interest are applied. If unpaid, collateral is partially or fully liquidated.
Can I pre-close my loan?
- Yes. You can close your loan by paying pending principal, interest, and any penalties. Remaining collateral will be returned to your wallet.
What happens if I pay more than required?
- An extra amount will be stored in the loan account and used for future dues.
How is interest calculated?
- EMI Loan – Interest included in EMI
- Flexi Loan – Interest calculated daily
Is there a penalty for early repayment?
- No. There is no penalty for early loan closure.
Is there a penalty for late payment?
- Yes. Late payment charges apply as per the fees page.
How many loans can I take?
- You can have up to 2 active loans for the same pair.
How long does it take to get the loan?
- Loan disbursement is instant after collateral is pledged.
Who is eligible for lending?
- All verified and active users are eligible.
What trading pairs are supported?
- Currently, you can borrow USDT against BTC collateral.
What is the difference between EMI and Flexi loan?
- EMI Loan – Fixed monthly payments
- Flexi Loan – Flexible repayment anytime
Can I partially repay my loan?
- Yes. Partial repayment reduces your outstanding loan and risk of liquidation.
Where can I track my loan details?
- You can view:
- Active loans
- EMI status
- Due amounts
- In the Lending Dashboard.
What does “Minimum Amount to be Paid” mean?
- It is the minimum payment required to keep your loan active and avoid penalties.
What is “Current Due” vs “Total Due”?
- Current Due – Immediate payable amount
- Total Due – Total outstanding loan
What is EMI Status?
- EMI status shows payment progress using indicators:
- Paid
- Pending
- Overdue
Can I use my collateral to repay the loan?
- Yes. A portion of your BTC can be liquidated to repay the loan if required.
Can I take multiple loans at the same time?
- Yes, within platform limits.