Crypto Loan Platforms Reveal Hidden Terms for 0% APR Offers

Crypto lending platforms have evolved to cater to the needs of modern borrowers. While headline APRs may seem attractive, they often come with hidden conditions and costs. One such example is the 0% APR loan offer that has garnered attention in recent times.

The key to unlocking this offer lies in understanding Loan-to-Value (LTV) thresholds, which measure the ratio between borrowed capital and collateral value. Platforms like Clapp and Nexo provide credit-line models with tiered rates based on loyalty levels or borrowed funds. However, 0% APR rarely applies to borrowed balances.

Clapp's credit-line structure is notable for its flexibility and transparency. Borrowers can deposit crypto assets and receive a credit limit that can be drawn upon as needed. Unused credit carries 0% APR when LTV is below 20%. Interest is charged only on the amount actually withdrawn, making borrowing more efficient than fixed loans where interest accrues immediately.