How To Get A Naira Loan With Dollar (USD) Stablecoins As Collateral
Need to get Naira loans with your Dollar Stablecoins as collateral?
We’ve built the simplest tool in all of Web3 to help you do that!
- No painful KYC processes.
- No loan application review period.
- Receive Naira in your bank account in < 30mins.
5 simple steps (plus cashout steps) to get it done! 👇
The hesitation to sell USDT or USDC for Naira is real especially when the dollar-naira exchange rate volatility is high!
Naira’s depreciation is not showing any signs of slowing down. It’s obvious that as a store of value, Naira is doing poorly with digital dollars being a better alternative for holding value.
Nowadays, you sell off enough USDT to meet an urgent need and after you do, you wish you didn’t when you see the new rates . You feel like you’ve lost something. You tell yourself, if only you could have held your stables for longer, you could have saved more value.
This wasn’t possible because there were no alternative financing options to help you keep holding your stablecoins while giving you access to fiat liquidity.
Well, there is now. Let’s guide you through using Finna Lend! 🟢
Step 1 → Deposit Collateral
Finna Protocol is currently a custodial solution.
To use Stablecoins as collateral to get Naira loans you must first deposit it into your Finna wallet.
Finna charges zero fees for this. See the full guide on our web platform here.
Step 2 → Get Started
Switch to the loan tab with the loan button stationed at the left of the screen on web. The tabs are stationed the bottom of the mobile application.
This screen reveals your current collateral balance, active loans, and loan repayment history.
Hit on the “Get Started →” button to set your loan parameters.
Step 3 → Setting Loan Parameters
Specify the amount you want to borrow (in Naira) above the minimum amount. Select how long you’d be holding it for. Loan durations include:
- 7 days
- 30 days
- 60 days
- 90 days
Note that Finna protocol now also supports partial repayments. This allows you to repay your loan in parts before the duration expires to free up your collateral i.e. locked stablecoins.
The collateral required is automatically calculated with a 90% LTV and the best rates for the particular stablecoin type selected.
💡 You require at least 110% of the Naira loan amount in Stablecoin as collateral to successfully process the loan.
Review the loan summary and hit the “Apply for this loan” button.
Step 4 → Set Transaction Pin
First-time users are required to set and confirm a 4-digit transaction pin at this point.
This is a security measure for users to protect their transactions going forward.
Hit the “Done” Button to continue your loan application.
Step 5 → Select Loan Collateral
From the loan calculator page, hit on the “Apply for this loan” button.
Finna automatically checks for the collateral requirement in your wallet balance. If it’s insufficient, you’re prompted to deposit Stablecoins to meet the requirement before you proceed.
With enough collateral, review the loan contract — estimated daily interest, total interest at the end of term, and end date included for transparency.
Enter your set transaction pin, agree to the terms & conditions, and hit “Continue” to process your loan.
Congratulations! 🎉
You’ve successfully taken your first Naira loan using USD Stablecoin as collateral with Finna Protocol!
That’s not the end though, there are a few steps to go before you have it in your local bank account.
Step 6 → Cashout Loan
The loan is currently disbursed to your Naira account within the Finna Wallet. Let’s get it to your bank account in a few steps.
Head to your wallet, you can use the wallet tab button docked at the left end of the app. Select NGN and hit the Cash out button on the NGN page. Input the withdrawal amount and add a bank account.
💡You need to complete step 7 to complete bank account addition as a first-time user.
Step 7 → BVN Verification
This is a necessary one-time step. It’s simple & fast and we only use your BVN for identity verification.
Finna Protocol is heavy on regulatory compliance so we perform a basic KYC on all our customers.
This is also a security measure to ensure that the funds move to the bank account of the same user in case the user loses the account to bad actors.
More elaborate user-tier systems is on the way! 🟢
Step 8 → Complete Withdrawal
After completing the basic KYC, you can complete the account addition process to get funds to your bank.
Select from a list of supported banks and input your bank account number to complete.
💡 Confirm your account name before proceeding.
Confirm the withdrawal amount and then hit “Continue → “
Step 9 → Approve Withdrawal
Approve the transaction with your set pin.
Finna Protocol charges N100 ONLY for withdrawals regardless of the amount.
You should receive the funds in your bank in less than 5 minutes! 🚀
Congratulations! 🎉
Now, you don’t have to sell your stablecoins if you don’t want to. You can just use it as collateral for an affordable pay-as-you-go interest Naira loan.
Let us know what you think about this smooth solution!
Leave a 👏 and share if you think more people should know about this solution.
Follow @FinnaProtocol for more of our product guides and other awesome stablecoin content!
🟢 We rebranded on November 1st, 2024! Check most recent stories for links to our socials, communities & website. 🟢
