Repaying your loan

You can repay with fiat (the standard path) or ask Helva to repay using your collateral. Unused collateral always comes back to you in kind.

Repay with fiat (standard)

At maturity, send principal + interest to Helva’s clearing account. The funds are forwarded to your lender immediately, and your Letter of Credit is released — returning all your collateral to your full control.

The LoC also expires automatically 5 days after maturity (loan maturity plus 5 days). You can request earlier cancellation (a small service fee may apply).

Repay with collateral

You request it in the app. Helva executes the redemption. Only what you owe is converted. Unused collateral returns in kind: the original asset, not a stablecoin leftover. Proceeds go only to Helva’s Safe, enforced by the contract. The loan is marked repaid only after on-chain confirmation. A fee applies for that conversion.

flowchart TD
    R[Ask in the app to repay with collateral] --> H[Helva executes the redemption]
    H --> E[Convert what is owed]
    E --> K[Unused collateral returned in kind]

Important disclosures

• You request repayment in the app. Helva executes the redemption. You do not call the protocol yourself.
• A conversion fee applies.
• Depending on your jurisdiction, converting collateral may be a taxable disposal. (For Swiss private investors, capital gains are generally tax-free; other jurisdictions differ. This is not tax advice.)

Early repayment & minimum interest

You can repay early. On any early termination, the lender receives principal plus pro-rata accrued interest, subject to a minimum of 3 months’ interest, and never more than full-term interest.

• For 3-month loans, the minimum equals the full term by construction.
• Early repayment involves operational work to cancel the LoC early, for which a fee may apply.

Why the minimum exists

The 3-month minimum compensates the lender’s reinvestment risk. It replaces older “full-term interest on any exit” models that were borrower-hostile — you no longer pay 12 months’ interest for 2 months of credit.

Next: Rollovers →