On CoinLoan interest rate is affected by the annual percentage rate for a loan (APR) and how long you borrow for (loan term). The annual percentage rate on a loan is the amount the lender would charge if you borrowed the money for a year, as a percentage of the original loan.

Detailed explanation of interests calculation on CoinLoan platform for 2 loan products:

**Short-term loan**

Term: 14-30 days

Daily interest rate calculation for short-term loans is a result of a division of loan term by number of days of a commercial year. There are 360 days in a Commercial year.

Formula is as follows:

Interest Amount = Daily Interest Rate × Loan Term × Loan Amount

For example:

Loan Amount: 10,000.00 USD

Term: 30 days

APR: 7%

Interest Amount: 58.34 USD

CoinLoan Service Fee: 5.84 USD (*)

Borrower Returns: 10,058.34 USD

Lender’s Income: 52.5 USD

Collateral information:

Collateral Value: 16,666.67 USD

Collateral Amount: 2.59789924 BTC

BTC/USD Rate: 6,415.44 USD

LTV: 60%

* CoinLoan Fee is deducted from Interest value on a Due Date

**Long-term loan** (Instalment loan)

Term: 2-12 months

Annual interest rate calculation for long-term loans is based on an annuity repayment method. CoinLoan apply 10% as a service fee from the interest amount for all loan instalment payments.

An annuity schedule is the most popular and most widely available repayment option for all traditional financial institutions.

Annuity payment schedule differs from the one that assumes payment of all the amount owed on loan pay-off date or the one that assumes interests to be paid periodically while the total amount of debt is to be paid on loan pay-off date. The amount of annuity payment includes the total amount of debt plus interests.

For example:

Loan Amount: 120,000.00 USD

Term: 6 months

APR: 7%

Interest Amount: 2,461.86 USD

CoinLoan Service Fee: 246.21 USD (*)

Monthly Repayment Amount: 20,410.31 USD

Borrower Returns: 122,461.86 USD

Lender’s Income: 2,215.65 USD

Collateral information:

Collateral Value: 200,000.01 USD

Collateral Amount: 31.17279862 BTC

BTC/USD Rate: 6,415.85 USD

LTV: 60%

* CoinLoan Fee is deducted from Interest value on each instalment payment Due Date

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