The working principle is pretty simple. A borrower applies for a loan, and we use deposits we got from users of the Interest Account to comply with the borrower’s request. Every credit, as always, is secured by crypto-asset.
Why Use Instant Loans?
- You can guess the #1 advantage from the title. New loans are brilliant because they are instant. It takes a minute to apply for a loan.
- No need to wait or look for counteroffers on the Lending Market. Approval is automatic.
- We don’t ask your credit history and require no paperwork. Crypto as collateral is the only essential.
- No deposit fees, no prepayment fees, no withdrawal fees for coins and euros.
- You’re wondering why do you even need instant loans against your crypto? We address this question in our previous blog post.
How Does It Work?
- Deposit your crypto assets to the platform.
- Go to Instant Loans. Choose a loan term, the amount you want to borrow, or the amount of crypto collateral you have. Click on Get Loan Now.
Figure 1: Instant Loan tab
3. And voila, now you can find your loan in a pending status in My Loans. Approval may take some time first; that’s because we need some time to test a new feature. Once we're done with testing, everything will start to happen automatically, in other words, instantly.
Figure 2: My Loans Loans tab
4. The change in the status means that now you can withdraw lent money from My Wallet.
5. Repay your loan according to the repayment schedule or ahead of it if you want. We charge no penalties for early repayment.
Figure 3: Loan Repayment Schedule
6. Once the loan is fully repaid, your collateral funds become available for withdrawal in My Wallet.
The interest is fixed within Instant Loan and varies for different assets. Setting loan parameters, you can see how rates change when you change loan currencies.
Remember, you can always opt for a custom interest rate on the Lending Market if you need more flexibility.