Nord NFT Loan V2 FAQ
Here are some of the most frequently asked questions.
We currently support USDC, USDT, DAI, and NORD tokens for lending and borrowing loans. The support for several other tokens will shortly be added.
There will be zero platform fees charged for loans lent with NORD tokens.
Both ERC-721 and ERC-1155 compatible NFTs are supported. Users may fill out the whitelisting form to get their NFT whitelisted.
Yes, the borrower may choose to repay the loan at any time, before the tenure ends as well.
The lender will have the option to seize the underlying NFT collateral while the borrower can choose to repay before the lender decides to seize the NFT.
Platform charges for USDC, USDT, and DAI tokens are fixed at 5% on the interest due. For loans lent with NORD tokens, the platform fees are zero.
In a Fixed interest rate bid, borrowers need to pay the entire interest amount to the lenders even if they pay back the loan amount well within the loan period. In the Pro-rata option, the lender provides money to the borrower on a pro-rata basis which means the borrower only needs to pay back the loan amount with the proportional interest rate required.
For Example, Alex is ready to take a loan from the Bob on Nord NFT Loans platform against his NFT. Let’s say the agreed amount for the NFT Loan between Alex and Bob is $1000 at a 10% interest rate for 10 weeks. Let’s say Alex can pay the amount back with interest within 5 Weeks.
Following are the interest amount that needs to be paid by Alex to Bob in each of the scenarios:
Fixed interest rate option:
1000*(10/100) = $100 interest amount payable to Bob
Pro-rata interest rate option:
1000*((10)(5/10)(1/100)) = $50 interest amount payable to Bob