Interest accrues daily at 00:00:00 UTC based on your outstanding loan principal and is not compounded on earlier interest charges. If you repay your loan before the cutoff time on a certain day, a full day’s interest will still be charged for that day. Interest rates are determined by the initial loan-to-value (LTV) ratio of your loan and the amount of your CRO stake in the Crypto.com Exchange as of the date of the loan drawdown.

If the annual percentage rate (APR) is 6%, the daily interest rate is 0.01643836% (Daily Interest Rate = APR ÷ 365, regardless of the number of days in any given year).

**Daily Interest**

**= (Outstanding Loan Principal) × (Daily Interest Rate)**

**= (Outstanding Loan Principal) × (APR ÷ 365)**

*For example:*

If a user takes out a loan of 10,000 USDT with 6% APR at 12:05:00 UTC, the daily interest rate is 0.01643836% and the outstanding interest will be 1.64383600 USDT at the beginning.

**Accrued Interest**

= 10,000.00000000 USDT × 0.01643836% = 1.64383600 USDT

At 00:00:00 UTC the next day, another day of interest will accrue based on the outstanding loan principal. Let’s assume this user has yet to make any repayments to this loan.

**Outstanding Loan Principal**

= 10,000.00000000 USDT

**Outstanding Interest**

= 1.64383600 USDT + (Daily Interest)

= 1.64383600 USDT + (10,000.00000000 USDT × 0.01643836%)

= 3.28767200 USDT

You can find the latest interest rates that we charge for Crypto.com Lending **here**.

You can enjoy discounted interest rates if the amount of your CRO Stake in the Crypto.com Exchange is at least 100,000 CRO. Learn more about CRO staking and its benefits **here**.