# Loan

You can start borrowing by visiting the Para app. Read our quick start guide for instructions. Borrowing on a yield agreement is a simple three-step process. You select the asset to borrow, add collateral, and view and initiate the transaction. The fixed interest rate you get when you borrow is determined by the built-in automated market, and the more you borrow, the higher your interest rate is likely to be. All loans in Para are overcollateralized, where the collateral is worth more than the debt. If you do not maintain a sufficient amount of collateral in your vault at all times, your vault may be liquidated. Yields allow you to borrow at a fixed rate for a fixed term, but with the option to repay early. Prepayment may prevent you from getting your original fixed rate, so when deciding on a loan term, consider when you plan to take out the loan.
