The reason is very simple. The interest rate varies based on your loan-to-value ratio, meaning that the more collateral you put down, the lower the interest rate you pay.

For example, if you took out a $25,000 loan and put down $100,000 worth of digital assets, your annual interest rate would be 1%. But if you took a $50,000 loan with $100,000 worth of collateral, then in that case your annual interest rate would be 7.95%.

When applying for a loan you can use the "**Calculator**" tool on the app to find out exactly what the interest rate would be for the amount of collateral that you're considering putting against your loan.

On top of the loan-to-value ratio, interest rates also change depending on how you choose to pay. **CEL tokens** will always get you the lowest paying rates, which means that if you pay the interest for your loan in CEL tokens, you can pay less.

For example, if you're at a platinum status and you have a 25% LTV loan, you should be paying the standard rate of 4.95%. However, if you choose to pay with CEL tokens instead, then you can pay a lower rate of 3.46%.

And the good news? This is something that is available to everybody, including the US users.

But no matter what, we are sure that we'll find the right rate for you. Just get in touch with us at loans@celsius.network if you need any additional help or have any further questions. We are here to help!