How to Close a Loan Manually on Celsius
Celsius crypto-backed loans can be closed either manually in-app -or- through the Loans Team. Here are the steps involved with manually closing your Celsius loan.
Celsius is the industry leader when it comes to crypto-backed loans. With multiple options for APR rates and LTV ratios, Celsius Network provides users with the ability to unlock value from their crypto assets whilst still keeping them for long-term investment.
Having said that, users may opt to close their Celsius loan early without any fees. There are a couple of reasons why a Celsian would opt to payback their loan principal early:
- start earning rewards on the collateral that is released once the loan is closed (as loan collateral does not earn weekly rewards)
- sell or convert it to other cryptocurrencies or fiat
Please note that there are NO penalties or fees if you close your Celsius loan early. However, if the loan has not matured for at least 6 months, there will be a 6 month interest payment due, which is the minimum requirement for all loans.
Borrowers can close their crypto-backed loan by paying back the principal in:
- stablecoins via their mobile app (as explained in this article)
- USD (fiat) via contacting the Celsius Loans team directly
Manually Closing a Celsius Loan by Using Stablecoins
Here are the steps involved with paying back your loan principal using stablecoins in your Celsius wallet. You can only close your loan manually via the mobile app and only if you have enough stablecoins to pay back the loan in its entirety. It only takes several minutes and is very easy and efficient. Here we go…
Navigate to Your Celsius Loan
- Log into your Celsius account via the mobile app
- Click on the purple Celsius logo on the bottom right of the screen to navigate to the main menu.
- Click on the ‘Borrow‘ button
- Click on the ‘Active‘ loans tab
- Select the active loan you want to pay back and close
- On the ‘Loan Overview‘ screen, click on the ‘Close Loan‘ button at the bottom of the screen
Start Your Celsius Loan Closure Process
- On the ‘Loans Closure Overview‘ screen, double-check that this is in fact the loan you want to close
- The screen will show you the Loan ID #, the amount of loan proceeds received (same as the loan principal amount you need to pay back) as well as the 3 steps involved for manually closing your loan.
- The 3 steps include:
- Reason for closing the loan
- Pay Interest (with amount owing, if any)
- Pay Principal (amount required in stablecoins)
- Click on the ‘Get Started >‘ button
Reason for Closing Your Celsius Loan
- On the ‘Loan Closure Reason‘ screen, you can select up to 2 options.
- Options include:
- Sell my coins
- Swap assets
- Earn rewards on my coins
- Don’t need the loan
- Better offer on another platform
- Type your answer (open field)
- Once you’ve selected up to 2 options, click the ‘Continue >‘ button
Pay Outstanding Interest (or ‘Due Interest’)
- On the ‘Pay Due Interest‘ screen, you’ll be notified as to the amount of ‘Total Interest Due‘. In this example, it is $1.02 USD.
- As you can see, there are 2 options to pay your outstanding loan interest:
- From account balance (with ‘Choose Coins’ drop-down)
- Transfer coins
- If you are paying the outstanding Celsius loan interest from your account balance, click ‘Choose Coins‘ (drop-down)…
Please note that a minimum of 6 month interest must be paid for any loan. If you’ve already paid 6 month interest, then the outstanding interest due will be the amount owing for the current month.
Choose A Coin to Use to Pay the Interest
- A drop-down list of all available coins and assets appears including the dollar value of each asset.
- Your top holdings will appear but you can also use the ‘Search‘ feature at the top to find assets that are not listed.
- Please note that you can get up to 25% discount if you pay using Celsius (CEL) tokens if you have Platinum Tier status. Other loyalty levels get smaller discounts, but it is well worth it!
- Select the coin or asset you want to use to pay the interest.
Pay Outstanding Principal (or ‘Due Principal’)
- On the ‘Pay Due Principal‘ screen, you’ll be notified as to the amount of ‘Total Principal Due‘. In this example, it is $200.00 USD.
- Again, there are 2 options to pay your outstanding principal:
- Pay with stablecoins (with ‘Choose Coins’ drop-down)
- Transfer coins
- If you are paying the outstanding loan principal with stablecoins, click ‘Choose Coins‘ (drop-down)…
In order to make the loan repayment efficient, please remember to deposit enough stablecoins into your Celsius wallet before you start the loan closure process. It’s much easier.
Choose A Stablecoin to Use to Payback the Loan Principal
- A drop-down list of all available stablecoins appears including the dollar value available.
- Select the stablecoin you want to use to pay the loan principal.
Confirm Loan Closure
- On the ‘Confirm Loan Closure‘ screen, you will find a summary of all 3 steps including:
- Reason(s) for closing your Celsius loan early
- Method, asset selection and amount of interest to be paid
- Method, stablecoin selection and amount of principal to be paid back
- Once you’ve reviewed the details, you can click on the ‘Confirm & Pay >‘ button
Loan Closure Confirmation
- On the ‘Loan closed‘ screen, you will get a confirmation that your Celsius loan is closed.
- A confirmation email will be sent to your account email.
- The screen will notify you of the amount of ‘unlocked collateral‘ you will receive back in your wallet that will start to earn weekly rewards straight away
- You have the option to rate your experience.
- Click on the ‘Back To Account‘ button and you’re finished!