Overview
Closing a loan allows users to fully settle their outstanding balance and close a loan facility. This action is available for both Line of Credit and Fixed Term Loan products and follows the same process across both.
Users can close their loan using either:
- Cash: Repay the balance using funds in their cash account.
- Security: Use the crypto security to repay the loan.
The security will be returned to the customer after the reckoning is completed.
Close loan with AUD
Closing a loan with AUD enables users to repay the full outstanding amount in cash.
The platform automatically displays:
- The total cash amount required to close the loan
- The amount of security (if any) that will be released after closure
Once the user confirms the transaction:
- The loan status is updated to
PENDING_CLOSE - The loan is marked
CLOSEDafter the reckoning process completes
Loan Status Update
The loan status update depends on how the business would like to send the fund:
- Send AUD with the close request for a near-instant status update
- Queue the close request and allow the system to update the loan status after the next reckoning
The principal here is the loan status will get updated once Block Earner debit the fund from master account for the repayment.
Close loan with Security
Users may choose to settle their loan using the value of their security (e.g., BTC, ETH). This method uses the full value of the security to cover the outstanding balance, including a 1% conversion fee.
The platform automatically calculates:
- The total amount to be repaid using security (including 1% fee)
- Any remaining security that will be returned after repayment
Once confirmed:
- Security will be sold immediately to lock the price
- The loan status is updated to
PENDING_CLOSE - After the next reckoning, the loan is marked as
CLOSED, and any unused security is released
Loan Status Update
Since the repayment is done using security, no fund transfer is required. The remaining loan security will be unlocked after reckoning.