Collateral is an asset you provide to a lender as security for a loan you get. Basically, it’s a lender’s 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 Instant 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 CoinLoan 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:

Web platform

  1. Go to Instant Loans, choose the asset you’d like to borrow, and click the Borrow button.

Instant Loans tab — Web platform

⠀⠀2. Specify the collateral type, choose the desired asset in the drop-down menu, and enter the amount.

Loan parameters — Web platform

⠀⠀3. After setting up all loan parameters, check the Loan Summary, read and agree to the Loan Agreement, and click the Get Loan Now 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 Instant Loans widget. Trying different amounts of money, LTV, and periods might be a good idea before you actually get a loan.

Instant Loans widget — Web platform

Mobile app

  1. Go to Loans and click 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.

Getting Instant Loan — Mobile app

⠀⠀⠀3. After setting up all loan parameters, check the Loan 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.

Which assets can be used as collateral

Crypto: BTC, LTC, ETH, XMR, BCH, XRP, XLM, LINK, DOT, MKR, WBTC, and ADA;

Stablecoins: PAXG, TUSD, USDC, PAX, USDT, BUSD.

Fiat: EUR and GBP.

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