To start borrowing on CoinLoan, all you need is a collateral asset to secure your loan. You can never borrow more than the value of your collateral, at least 70% of its value.
Further, you’ll need to complete KYC verification. It’s a fully automatic process that takes only a couple of minutes.
How to Get a Loan?
- Deposit your collateral assets to the platform.
- Go to Instant Loans. Choose a loan term, the amount of crypto collateral, LTV, and the amount you want to borrow. The interest is fixed and varies for different assets and depends on the chosen LTV. Setting loan parameters, you can see available collaterals, assets, and rates. When you’re ready, click on the Get Loan Now button.
- Now you can find your loan in My Loans and withdraw borrowed money from My Wallet.
- Repay your loan according to the repayment schedule or ahead of it if you want. We charge no penalties for early repayment.
- Once the loan is fully repaid, your collateral funds become available for withdrawal in My Wallet.
Why Do I Need Instant Loans?
Crypto loans allow you to unlock the value of your digital assets without selling them. If you sell your bitcoin at the current price, you’ll be out of the game. And if bitcoin turns out to rise to $15,000 in a year, you'll regret your decision. If you expect your asset to grow, crypto lending is an excellent way to avoid an untimely sell. You'll spend some money paying interest rates, but asset's continued growth can easily absorb these costs.
Other advantages of CoinLoan Instant Loans:
- It takes a minute to apply for a loan. Approval is automatic.
- We don’t ask your credit history and require no paperwork. Collateral is the only essential.
- No deposit fees, no prepayment fees, no withdrawal fees.
What Kind of Loans Are Available?
- Crypto-to-Fiat Loans. Using your crypto as collateral, you can get a loan in Euro or stablecoins. US dollars will become available for borrowers soon.
- Crypto-to-Crypto Loans. With crypto as collateral, you may get a loan in the same or different coins. For instance, it is possible to borrow BTC against XRP.
- Fiat-to-Crypto Loans. Your Euro or stablecoins may be used to borrow cryptocurrency.
How Do I Repay My Loan?
A short-term loan (7 - 30 days) must be repaid with a single payment.
A long-term loan (2 - 36 months) must be repaid every month, according to a repayment schedule. Your repayment schedule is available in My Loans > Loan Details > Repayment Schedule.
- Open My Loans (Borrowing tab).
- Click on the Repay button.
- Choose between regular repayment and full early repayment.
- Choose the repayment method. It can be loan currency, loan collateral, or any other asset you have in your CoinLoan wallet.
- Confirm your payment.
We will send you notifications about the upcoming repayments following the repayment schedule. So check your email in order not to miss a deadline.
After you’ve repaid the loan, your collateral returns to you in its entirety, no matter how its value changed during your loan.
Can I Repay My Loan Early?
You can make an early repayment without any penalties, and the interest will be charged only for the period the loan was outstanding. If you’re not sure about the timeframe, you can choose a longer loan term and repay early at any moment without paying an extra penny.
The repayment is possible with any other assets you have in My Wallet, not only your loan currency. It is also possible to liquidate your collateral by request to repay a loan in full or make a regular payment.
For instance, if you can see that your collateral coin is crashing, you request liquidation and repay your loan before it loses its liquidity. Alternatively, if the value of your collateral has grown, it can make sense to repay the loan with a part of the collateral and withdraw the rest of the coins.
To make an early repayment, go to My Loans > Loan Details > Repayment Schedule. Click on Repay Early if you want to make full repayment.
What Happens If the Market Value of My Crypto Collateral Changes?
To check the status info, go to My Loans > Loan Details. Original Collateral reflects the status of your collateral at the moment of borrowing. Current Collateral shows changes that occurred to collateral during the loan term, including the current market value of your collateral.
Cryptocurrencies are very volatile, so you’ll probably see changes in Collateral Value and LTV graphs.
In the positive scenario, the market value goes up, and the LTV ratio goes down. In this situation, you can:
- Do nothing and use your overcollateralization as a safety bag;
- Withdraw excess collateral from an active loan and increase LTV to the maximum level of 70%.
In the negative scenario, your collateral value drops significantly, thereby increasing your LTV. As soon as your LTV reaches a danger zone of ~80%, we mark your loan red with a “liquidation risk” label. You’ll get an email notification about your loan’s new status and scenarios you may follow:
- Add a certain quantity of collateral to balance your LTV back to 70%. To do that, please use the Add More Collateral button located in My Loans > Loan Details.
- Make a full early repayment or make a few payments in advance of your repayment schedule. Thereby, you’ll decrease your LTV.
- If you ignore a notification and LTV goes beyond your liquidation threshold before you react, the system will liquidate your collateral. To figure out your threshold, open the LTV Liquidation Threshold section in Loan Details.
What Are the Borrowing Fees?
The borrower is charged with the borrowing fee simultaneously when accepting the offer and issuing a loan. Borrowing fees are calculated as 1% of the overall loan principal amount and are deducted from the loan amount.
Deposits and withdrawals are free. If you take a loan in EUR, you’ll be able to withdraw it through SEPA for free. To repay your loan, you can deposit cryptocurrency or EUR through SEPA, both without commission. There’s an option to deposit fiat to the platform using a bank card, but in this case, you’ll be charged for 2 EUR + 4.2% from the deposit amount.
More information is available on the dedicated Fees page.