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Need money for a business expense, school fees, or a bill that cannot wait? You have options, but most loans come with paperwork, credit checks, or collateral you may not have.
If you already hold crypto on Busha, there is a faster route. You can use eligible crypto as collateral to borrow Naira instantly, without selling your holdings or watching the market while you wait for approval.
In this guide, we explain how crypto-backed loans work on Busha, how to get one from the app, what you will pay, and what to check before you borrow.
How do you normally get a loan?
Most loans require you to apply with a lender who reviews your details to decide if you qualify. What they ask for depends on the loan type, but lenders typically look at:
- Your identity and verification details
- Your income or account activity
- Your ability to repay
- An asset you can offer as collateral
Loans that do not require an asset are unsecured. Loans that do are secured, and the asset backs the amount you borrow. A crypto-backed loan falls into this second category: your crypto is what secures the loan.
Can you get a loan using your Crypto?
Yes. If you hold eligible crypto on Busha and qualify, you can borrow Naira against its value.
Say you hold Bitcoin you want to keep long-term, but you need Naira now for a short-term expense. Rather than selling, you can pledge some of that Bitcoin as collateral instead.
Your collateral stays locked while the loan is active. Once you repay in full, it is released back to you.
What is a Crypto-backed loan?
A crypto-backed loan lets you borrow Naira using your crypto as collateral, with the amount you can access tied to its value.
On Busha, it works like this:
- You pledge eligible crypto from your Busha account as collateral.
- We show you how much Naira you qualify to borrow.
- You review the interest rate, loan-to-value ratio, and liquidation price before confirming.
- You receive the Naira in your Busha wallet and repay over time.
Your collateral stays tied to the loan until repayment is complete. Keep an eye on its value too, since a sharp price drop can push your loan closer to liquidation.
How to get a loan without selling your Crypto on Busha
You can start the loan process directly from a crypto asset you already hold on Busha. How much you can borrow depends on your holdings and your available borrowing limit.
Step 1: Log in and tap Crypto
Log in to your Busha app and tap Crypto in the bottom navigation to see the crypto assets in your account.
Step 2: Open a crypto asset you hold
Tap the asset you want to borrow against. The asset page shows your balance and its Naira value. If you are eligible to borrow against it, you will also see how much you can borrow based on your holdings.
Step 3: Tap Explore to start your loan
Tap Explore on the borrowing card to open the New loan screen. Enter the amount of Naira you want to borrow, and you will see the maximum available to you.
Step 4: Choose your collateral
Under Collateralize, choose the crypto you want to use. Tap Change to switch to another eligible asset. Your available balance and its Naira value are shown before you choose.
Step 5: Review the loan details
Once you enter your loan amount, we calculate the collateral required and show you the full breakdown. Check:
- The amount you will receive and the crypto required as collateral
- Your monthly interest rate and interest amount
- Your loan-to-value ratio and exchange rate
- The price at which your collateral will be liquidated
For example, a ₦15,000 loan at 4% monthly interest costs ₦600 for a full monthly cycle. The loan screen shows exactly how much crypto is required as collateral and the liquidation price for that loan.
Step 6: Read the collateral terms
Tap Borrow now and read the collateral terms before confirming.
Your interest accrues daily. You can repay your principal in full or in part at any time, with no early repayment penalty, and your interest adjusts based on the remaining balance.
We charge interest from your NGN wallet at the end of each cycle. If your NGN balance is insufficient, we may deduct the outstanding interest from your collateral.
You will also see the liquidation terms. If your collateral reaches the liquidation point, we can sell the required amount to cover what you owe.
Read the Loan Service Agreement in the app before accepting the terms.
Step 7: Confirm your loan
Tap Confirm once you have reviewed your loan details and accepted the terms. Your loan becomes active once eligibility, collateral, risk, and compliance checks are complete.
Step 8: Receive the Naira in your Busha wallet
Once your loan is completed, the Naira lands in your Busha wallet, ready to use or withdraw.
The crypto you used as collateral stays locked until you fully repay the loan and it is released.
How much can you borrow against your Crypto?
How much you can borrow depends on the value of your eligible crypto and the loan-to-value ratio for your loan.
Loan-to-value, or LTV, compares the amount you borrow against the value of your collateral. For example, if you use ₦1,000,000 worth of crypto as collateral and borrow ₦400,000, your LTV is 40%.
You do not need to calculate this yourself. Your asset page shows how much you can borrow, and the LTV is displayed before you confirm. This amount can shift as the value of your crypto changes.
What happens to your Crypto after you take the loan?
The crypto you pledge is locked as collateral for as long as your loan is active. You cannot withdraw or transfer it during this period. Once you repay in full and we release the collateral, it becomes available to you again.
Its value can still move while it is locked, and a drop can push your loan closer to its liquidation point.
What happens if the price of your Crypto falls?
A fall in your collateral's value can raise your LTV (Loan-to-Value). For example, if you borrow against Bitcoin and its price drops, your loan balance stays the same while the Bitcoin securing it is now worth less. That pushes your LTV higher.
We show you the liquidation price before you confirm the loan and notify you if your collateral approaches that threshold.
If your loan reaches its liquidation point, we can sell all or part of the required collateral to recover what you owe. Check your loan position regularly while it is active.
How much interest do you pay on a Busha Crypto-backed loan?
Busha crypto-backed loans carry a 4% monthly interest rate, accrued daily. For example, if you borrow ₦15,000 and hold the full loan for one month, that month's interest comes to ₦600.
Interest is charged at the end of each monthly cycle and deducted from your NGN wallet. If your NGN balance is not enough, the outstanding amount may be deducted from your collateral instead. You can repay early with no penalty, whether in full or in part, and your interest adjusts based on the remaining balance.
Always check the interest rate and amount on your loan screen before confirming, since terms can be updated.
Crypto-backed loan vs selling your crypto
Selling gives you Naira by closing part of your crypto position. Borrowing gives you Naira while your crypto stays pledged as collateral.
A loan comes with interest and liquidation risk attached, so weigh the cost of borrowing and your ability to keep up with repayments before choosing this route.
When might you consider borrowing against your crypto?
A crypto-backed loan can help when you already hold eligible crypto and need temporary access to Naira, for example:
- A short-term business expense
- An unexpected bill
- A planned payment you need to make now
- Temporary cash flow while keeping your crypto position
Before you borrow, make sure you understand the interest and the liquidation risk tied to your collateral.
What to check before taking a crypto-backed loan
We show you the key figures before you confirm your loan, so take time to review each one.
- Interest: the monthly rate and interest amount for your loan
- Loan-to-value: how much you are borrowing against the value of your collateral
- Liquidation price: the price that puts your collateral at risk of being sold
- Repayment: how interest is paid, and how partial or full repayment works
These details tell you what your loan will cost and how much risk your collateral carries.
How to get started with a crypto-backed loan on Busha
If you already hold eligible crypto on Busha, check how much you can borrow directly from your asset page:
- Log in to Busha and tap Crypto.
- Open an eligible crypto asset you hold.
- Tap Explore on the borrowing option.
- Enter your amount, review the terms, and confirm.
Once your loan is completed, the Naira lands in your Busha wallet.
Frequently Asked Questions
Q) How can I get a loan in Nigeria?
A) You can get a loan through banks, licensed lenders, and secured lending products. If you already hold eligible crypto on Busha, you may also qualify for a crypto-backed loan that lets you borrow Naira against it.
Q) Can I get a loan with Bitcoin?
A) Yes. If Bitcoin is eligible collateral on your Busha account and you qualify, you can borrow Naira without selling it.
Q) Can I borrow money without selling my Bitcoin?
A) Yes. You can pledge eligible Bitcoin as collateral and borrow against its value. It stays locked until you repay in full and we release it.
Q) Can I use USDT to get a loan?
A) Yes. Eligible USDT can serve as collateral for a Busha crypto-backed loan. We show you how much USDT is required once you enter the Naira amount you want to borrow.
Q) What is a crypto-backed loan?
A) It lets you borrow money using cryptocurrency as collateral. Your crypto stays locked against the loan while you receive Naira and repay what you owe.
Q) How much can I borrow against my crypto?
A) That depends on the value of your eligible crypto and your available borrowing limit. Open the asset in your Busha app to see what you can currently borrow.
Q) What happens to my crypto when I take a loan?
A) It is locked as collateral, and you cannot withdraw or transfer the pledged amount while it secures your loan. We release it once you repay in full.
Q) What happens if my crypto increases in value?
A) Your crypto remains collateral while the loan is active. If its value rises, so does the collateral backing your loan. It stays locked until you repay in full and we release it.
Q) What happens if my crypto falls in value?
A) Your LTV rises as your collateral's value falls. If your loan reaches its liquidation point, we can sell all or part of the required collateral to recover what you owe.
Q) Do I need a credit score to get a crypto-backed loan?
A) Eligibility is based on factors like your account activity, verification status, account behaviour, and compliance checks. If you qualify, you will see the borrowing option and available amount in the app.
Q) How do I repay my Busha loan?
A) You can repay your principal in part or in full at any time, with no early repayment penalty. Interest accrues daily while the loan is active, and adjusts based on your remaining balance if you repay early.
