> For the complete documentation index, see [llms.txt](https://drops-2.gitbook.io/drops-documentations/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://drops-2.gitbook.io/drops-documentations/drops-marketplace-guide/how-to-access-loans-on-locks.md).

# How to: Access Loans on Locks

## Loans on Locked Liquidity

The Drops Marketplace allows users to access loans on their locked liquidity. By using locked liquidity as collateral, users receive instant access to their asset for a fixed daily interest rate.

## Requesting a Loan

**Navigate to:**

{% embed url="<https://app.drops.site/lend-liquidity>" %}
Lend Liquidity Page on The Drops Marketplace
{% endembed %}

### Select your collateral&#x20;

Start by connecting your wallet.&#x20;

Once connected, choose which locked pair you wish to use as collateral against your ETH loan.&#x20;

<figure><img src="https://443109381-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FZ9OD5Hc5r5djgDdwEbhV%2Fuploads%2FbqQq2Ta9CWYwb1UplAue%2FScreen%20Shot%202024-08-24%20at%2011.13.08%20PM.png?alt=media&amp;token=9b95c480-3926-4e20-88d9-36ca02c66213" alt=""><figcaption><p>All supported locks will appear here upon connection of wallet.</p></figcaption></figure>

### Complete loan details&#x20;

Review your selected collateral, and choose a timeframe for your loan *(1-14 days loan time in beta).*

<figure><img src="https://443109381-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FZ9OD5Hc5r5djgDdwEbhV%2Fuploads%2FIHQFSSBnQI9YbAwRM9SO%2FScreen%20Shot%202024-08-24%20at%2011.16.40%20PM.png?alt=media&amp;token=682d7a14-f242-473d-9e67-7f47b6450550" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
**Note:** All Final rates are only confirmed once your loan is approved. Rates found on application page are estimated.&#x20;
{% endhint %}

Select your desired loan time. Once you have confirmed your application expect a response in 1-24 Hours.

## Accepting & Managing Loans

Navigate to the Manage Loans panel here

{% embed url="<https://app.drops.site/lend-liquidity>" %}
Lend Liquidity Portal
{% endembed %}

This panel is where users receive live updates on their loan requests and manage on-going loans.&#x20;

<figure><img src="https://443109381-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FZ9OD5Hc5r5djgDdwEbhV%2Fuploads%2Fs1nSYkiTdDLalTt0ha4U%2FScreen%20Shot%202024-08-24%20at%2011.31.51%20PM.png?alt=media&amp;token=37574eea-8b40-4ec0-a663-49166ec37144" alt=""><figcaption></figcaption></figure>

If your loan is approved, an "Approved" status will be displayed in blue.&#x20;

Once the "View offer" button is clicked users are prompted with the loan's rates, and the option to accept or deny the loan.&#x20;

### Breakdown of loan details:

{% hint style="info" %}
**Approved Loan Amount:** The amount of ETH offered against your selected collateral.&#x20;

**Loan Time:** The approved loan length time.

**Interest Rate:** The daily cost of borrowing the loan.

**Max Total Interest:** Max interest paid by user if loan is taken out for the entire approved time period.
{% endhint %}

Once you have reviewed all the details, accept your loan offer by clicking the "Accept" button.

### Repaying your loan

On the same page within the "Manage Loans" panel, users will find their on-going loans.

<figure><img src="https://443109381-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FZ9OD5Hc5r5djgDdwEbhV%2Fuploads%2FIa2wyDqH2mSchx538SDO%2FScreen%20Shot%202024-08-24%20at%2011.50.15%20PM.png?alt=media&amp;token=ca365e2c-59fc-4342-a1d2-0e5a8f2030c1" alt=""><figcaption></figcaption></figure>

Here users are prompted with the days remaining on max loan time, interest accrued and the total amount of ETH to repay.

**Repay your loan at any time by clicking the "Repay Loan" button.**&#x20;

Once clicked, a dropdown menu will appear. This will confirm your amount to repay along with the max time left on your loan.&#x20;

## Loan Grace Period & Defaults

Grace period:

Should a user fail to repay the loan & its accrued interest within the given loan period, Drops allows for a week-long grace period. During this grace period the loans interest rate doubles.

Defaults:

After the week-long grace period, if the borrower fails to pay back the loan in its entirety (including the accelerated interest accrued during the grace period), Drops will claim ownership of the LP lock. The lock will promptly be sold on the Drops marketplace as a verified pair, and will only sell at its precise "Buy Now" price.