To create a Loan Request, you need to perform the following steps:
- Open the Lending Market page and hit the Borrow button in the top right corner.
- Fill out the application form and push the Create Loan Request button.
Here is a review of the fields you need to fill in while creating your Loan Request.
This is the amount and currency of the collateral, that will be used to secure timely and full loan repayment.
Choose the currency of your collateral from the dropdown list of available options.
If you cancel your Loan Request before a lender accepts it, the collateral will be released to your account.
This amount and currency will be credited to your CoinLoan Wallet after the loan has been initiated. Please enter the amount you would like to borrow and select the currency from the options provided in the drop-down list.
Currently, you can take a loan in USD, EUR, GBP, RUB fiat currencies, BTC, ETH, LTC, XMR cryptocurrencies and TUSD, USDC, PAX, USDT, EURS, DAI stablecoins.
Once the funds are in your account, you can use them in several ways – withdraw, exchange, or use it for lending.
This is an annual interest rate for a loan issued within this Loan Request. Please have in mind that the higher your interest rate, the faster a lender will accept your request.
By setting up the loan term, you indicate the desired borrowing period.
A short-term loan (7 - 30 days) should be repaid with one single payment, while a long-term loan (2 - 36 months) will be repaid every month (according to the repayment schedule).
LTV (Loan-to-Value Ratio)
This is the ratio between the amount of your loan principal and loan collateral. To learn more on how LTV works, please check the corresponding article.
Your LTV can be changed using the following slider:
To secure the loan and prevent a margin call in case of a drastic market value fall of collateral cryptocurrency overcollateralization is important. That said, the loan will be secured by an amount of cryptocurrency larger than the loan value. The percentage of LTV indicates to what extent the loan is collateralized.
CoinLoan allows you to choose between two repayment options:
Principal + Interest Payment Formula
This payment formula means that the total amount of Loan Principal (original amount borrowed) and interest (fee charged for borrowing) is divided into equal monthly payments.
Thus, the composition of interest and repayment changes slightly with each repayment, as the share of interest decreases month by month and the share of loan principal moves up.
Interest-Only Payment Formula
Choosing an Interest-Only, you will make regular payments, which will include only interest (fee charged for borrowing), not the principal (original amount borrowed).
Hence, the repayments are quite low at the beginning so that an Interest-Only loan allows reducing monthly payments during the term of the loan. On the final monthly payment, the entire principal eventually comes due together with the remaining part of interest.
Click each of the options one by one and see how the loan terms change in the Loan Summary.
Once you have finished filling out the application, please read our Loan Agreement and tick the box.
To send your Loan Request to the Lending Market, please click Create Loan Request.
What Is Next?
After the Loan Request is created, it will become publically available in Lending Market > Loan Requests until another platform user accepts it. As soon as your loan is lent, you get a notification. The loan details you can find in My Loans.
In case if your loan has been ignored for too long, uncompetitive conditions may be the reason. To understand the market situation and choose the advantageous interest rate and loan term, please visit the Recent Loans tab.