Collateral is an asset you provide as a security for a loan you get. Basically, it’s an insurance that you will eventually repay the loan amount.
CoinLoan offers only secured loans. That’s why borrowing funds without collateral is impossible.
Why is collateral necessary?
Collateral is the only requirement to get a loan. Our insurance allows us not to do paperwork or credit history checks as banks do. Instead, our Loans are approved automatically because they are secured by collateral.
If we’re talking about crypto, collateral is also crucial to reducing the asset’s market price crash risk. Due to that fact, the collateral amount has always to be higher than the loan amount. The maximum loan amount you can get is 70% of your collateral.
If you, for some reason, don’t make your regular loan payment, a part of the collateral could be used to make a payment. At first, the system will try to make an automatic payment using the loan currency amount in your Wallet. But if you don’t have enough funds for a monthly payment, the platform will sell a part of your collateral for repaying.
Where do I choose collateral for my loan?
It would be best if you had the asset in your Wallet. We offer SEPA and SWIFT for depositing fiat on the platform (see our guide on depositing fiat) and local blockchains for depositing crypto (see our guide on depositing crypto).
To choose collateral, you should do the following:
⠀⠀1. Go to Loans and click the Get Loan button.
Get Loan button — Web platform
⠀⠀2. Specify the LTV, choose the desired collateral asset in the drop-down menu, and enter the amount.
Loan parameters — Web platform
⠀⠀3. After setting up all loan parameters, check the loan details, read and agree to the Loan Agreement, and click the Get Loan button. Now you can make payments for your loan or check its details in the Loans tab.
You can calculate the amount of collateral you need for a certain sum of funds or how much of an asset you can borrow if you have a specific amount of collateral on our website using our Loans widget. Trying different amounts of money, LTV, and periods might be a good idea before you actually get a loan.
Loans widget — Web platform
⠀⠀1. Go to Loans and press the Get Loan button.
Loan module — Mobile app
⠀⠀⠀2. You will see the form to choose the collateral type in the drop-down menu and enter the amount you want to provide.
Loan parameters — Mobile app
⠀⠀⠀3. After setting up all loan parameters, check Summary, read and agree to the Loan Agreement, and click the Get Loan button. Now you can make payments for your loan or check its details in the Loans module.
Get Loan button — Mobile app
Which assets can be used as collateral?
Crypto: CLT, BTC, ETH, XRP, XMR, BNB, ADA, SOL, EOS, DOT, XLM, LTC, BCH, WBTC, LINK, MKR, and PAXG;
Stablecoins: USDC, USDT, BUSD, TUSD, and USDP.
Fiat: EUR and GBP.