<aside> 💡 Rain.Fi Tip**: Taking loans to trade other NFTs is risky and can result in loss of your collateral.**

</aside>

Taking a loan on Rain.Fi is simple!

First, you need to select an NFT that you would like to collateralize. This means that this NFT will be used as a security for your loan repayment. If you do not repay the loan in time, you will lose the NFT.

https://lh5.googleusercontent.com/XUirHNFtXQFx2q6ICY2uin81HQVVeZQCPfamcoM81qixEX1QvBr1hXlPUobxG4ZX9uxwphOAx90280IFoRtGn-2VS6DNHXihw398en1JVw6kdhuRC2RPYR-tSe7xXma7n_ZZbS3qj7XNXNHEebingiI

Loan pool offers are aggregated and displayed for borrowers to select from.

Before committing to your loan, make sure to read the terms below:

• Loan duration: How long you have to repay
• Interest: Additional fees owed to the lender
• Upfront fees: Fees paid to Rain.Fi (included in interest fees)

https://lh6.googleusercontent.com/lu8mfaLCF72zaZ88-pE-oMdCUwVZqtLxB2xlnEl1SriplCFWZReLVRismrwF-R7byPU2sX_a_Av63QTPECrmOdY7hJdr2SnLhGfn5l5T_idrHT05Nux9pEdQP-_Ty82f2ObbN3qMx3XevcUTwxX8uWo

Once you have selected a loan option, make sure to check the terms underneath.

After passing the repayment period, your loans will be put on a grace period, where you have 24 hours to repay before defaulting.

• After passing the repayment period, your loans will be put on a grace period, where you have 24 hours to repay before defaulting (24 hours subject to change, TBD).

If you default on the NFT, it is lost and you are left with the amount that you initially borrowed.