> For the complete documentation index, see [llms.txt](https://beraborrow.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://beraborrow.gitbook.io/docs/borrowing/how-can-beraborrow-offer-interest-free-loans.md).

# How can Beraborrow offer Interest-Free loans?

Beraborrow's interest-free borrowing model is supported by a well-thought-out economic design:

* **Capital Efficiency**: Our protocol's efficient design means you can borrow more, with less collateral, maximising your financial power.
* **Yield-bearing collateral**: Berachains liquid staking tokens like **iBGT** offer a constant value accruing of the collateral, benefiting from the Proof Of Liquidity model emissions, that will (probably) offset the borrowing cost, or even offer negative interest rates, a.k.a. lenders will pay borrowers.