# Lending

Users who want to lend their currency at a fixed interest rate can buy fCash. A lender exchanges their currency at the time of trade for a greater, fixed amount of that currency at a specific point in the future. The exchange rate that the user gets implies a fixed interest rate on their loan between the moment they trade and the time that their fCash matures.

In the following example, a lender loans 100 DAI to the liquidity pool at an fixed interest rate of 5% for 3 months. When the loan matures on December 1, 2020, the 100 DAI loan plus the 5 DAI fixed interest rate is returned to the lender.

![](https://1632304260-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MI0SmezuP0sAu-OXOVm%2F-MIpcQofe_ca2fuoHsuE%2F-MIphWcPwPr1uNXR7Qcv%2Flend-01.png?alt=media\&token=b2c32f9a-2e42-4c0f-af1f-a4d4fcd01ae7)

When the loan matures, the lender can redeem their fCash for currency.

![](https://1632304260-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MI0SmezuP0sAu-OXOVm%2F-MIpcQofe_ca2fuoHsuE%2F-MIph_fb_4GocLRzOUrs%2Flend-02.png?alt=media\&token=5916517d-a940-4526-950d-f689349ec403)