Welcome to Zharta, where your NFTs can be more than collectibles – they can become opportunities. In this tutorial, we'll show you how simple it is to borrow against your NFTs on our platform and what makes us THE borrower-friendly protocol of NFT Lending.

But First - What are NFT-backed Loans?

NFT Finance, or NFTFI, is where NFTs and DeFi come together. NFT Lending, much like TradFi’s Art Financing, is the solution to the problem of NFT illiquidity – allowing holders to “put their NFTs to work” without selling them.

After all, just because your art is priceless doesn’t mean you can’t use it as a financial asset. 

Read on to learn how to use NFT Loans to unlock your NFTs’ liquidity – and full potential.

Step-by-Step Tutorial

First, click Borrow -> Get a Loan.

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Select the NFTs you want to use for your loan.

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If you have a lot of supported NFTs, you can use our filters to sort through them more easily

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You can choose between 3 loan terms - each with its own LTVs and APRs.

You can check the conditions for each collection/loan term here, but a good rule of thumb is that the shorter the term, the higher the LTVs and APRs.

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As you might have noticed in the earlier steps, the loan principal automatically changes to the max you can borrow depending on the selected NFTs and loan period.

Once you’ve settled on the collateral and loan term you want, you can adjust this value manually.

Double-check the loan summary. 

Once you’re set, click Get a Loan.

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First, you’ll get an overview of the process.

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If you selected one or more NFTs from a collection you’ve never used at Zharta before, you’ll need to approve it through your wallet. You’ll only need to do this once per collection - it will appear as “Approved” in future loans.

This step is necessary so that the protocol has permission to move your NFTs into Smart Contract Escrow. Your NFTs will only be moved when you confirm the loan, however, and not during this step.

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Next, you’ll decide whether you want to use Delegation.

Delegation allows you to continue making use of your NFT’s utility, such as accessing gated Discord servers and using them for gaming (depending on the collection, however, what you can do via Delegation may be limited).

Since this feature increases gas costs, we recommend only using it when you know you’ll need it.

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Finally, you’ll get another chance to review your loan before approving it. 

Once you click Approve, you’ll get prompted to approve it with your wallet as well.

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After that, it’s just a matter of waiting for the blockchain to do its thing…

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…and that’s it!

We recommend that you set up email notifications or calendar alerts for your loan(s) - that way, you won’t risk forgetting about upcoming deadlines.