> For the complete documentation index, see [llms.txt](https://docs.grofidex.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.grofidex.io/features/loans.md).

# Loans

### Why do we need Loans System?

The GroFi Dex Loans product is a product within the GroFi Dex Ecosystems that provides users with the ability to perform U2U loan actions based on collateral.

An effective solution for individuals who need U2U but instead of selling assets to get U2U, they use GroFi Dex Loans to mortgage assets and receive U2U.