Both fixed-term loans and the line of credit require interest payments, but the timing and structure differ.
For the line of credit, interest is billed on the 1st of each month and due on the 15th. For 12-month loans with monthly interest payment plans, interest is due monthly on your loan's payment date. In both cases, you can auto-pay interest from your cash balance, bitcoin balance, or linked bank account.
If you select bitcoin, it will be sold to cover the payment, and trading fees apply. Payments using bitcoin are taxable events.
You can change the source at any time. It's not possible to split the payment between sources.
You can also pay interest early from your Line of Credit Center at any point during the month, for either the previous billing cycle or the current cycle's accrued interest.
For payment-at-maturity loans, you pay all accrued interest on the same date you repay the borrowed amount.
At the close of each billing cycle, a line of credit statement is generated and available in the Strike app. You'll also receive an email notifying you that your statement is ready and when interest is due. The statement includes your balance, interest charges, minimum payment, APR, and payment due date.
Fixed-term loans don't have monthly statements.
For fixed-term loans, principal is due at 6 PM ET on the 12-month maturity date. Maturity payments can come from your cash balance or bitcoin collateral. You can repay any percentage of your loan early at any time.
The line of credit has no principal due date. You can repay any amount at any time. Repaid principal stops accruing interest immediately and becomes available credit to draw again.
Payments can fail due to insufficient cash or bitcoin balance, a disconnected or invalid linked bank account, or if the deposit limit has been reached. If you experience repeated issues, contact support.
If your payment fails, you have a 10-day grace period. If unpaid after the grace period, enough bitcoin collateral will be liquidated to cover the overdue amount.
Learn about the APR and interest calculation for both products.