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How Does the Interest Rate on an NFT Loan Compare to a Fungible Token Loan?

NFT loan interest rates are higher due to the increased risk from the illiquidity and subjective valuation of the unique collateral.
Greeks.Live16.11.25

How Does the Interest Rate on an NFT Loan Compare to a Fungible Token Loan?

The interest rate on an NFT loan is generally higher than on a fungible token loan. This is due to the increased risk associated with the illiquidity and subjective valuation of the NFT collateral.

Lenders demand a higher premium to compensate for the greater difficulty and uncertainty involved in liquidating the unique asset upon default.

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