CoinStrat clients will sometimes pay off their crypto loans early. This is called prepayment. Some clients decide to do this when another investment opportunity comes up or when the loan is no longer needed. There is no penalty for early repayment as all loan interest is accrued daily. If you pay off your loan early, any remaining interest is subsequently forgiven. This means that you won't be charged for the interest you would have paid if the loan had been continued through the rest of its 12-month term. Once your loan is paid off, collateral is released directly back into your CoinStrat Wallet.

Some clients who inquire about prepayment are interested in starting a new loan. The best option for these clients can be to refinance their current loan with additional principal, adjustment to collateral amount, or a new loan term. This extends the value of their original collateral and helps the client with additional funding needs. More information regarding our refinance process can be found here.

What is important to know about prepayments?

When considering whether to take out a loan, you should first establish what you will be using the loan for and how long you need to put the financing to work. CoinStrat's loan structure gives you the flexibility to either prepay (if your funding needs require a shorter time-frame) or refinance at the end of the term (if you require a longer time frame for your financing). Some clients, for example, will use the funds to put a down payment or fully purchase a house while they are waiting on their mortgage to come through. They will then repay the loan with the proceeds from the mortgage. However, every individual situation is different and clients should consult with a finance professional before making these decisions.