Borrowing on CoinLoan Explained in Simple Terms

advice Oct 29, 2018

3 Main Things to Know Before Taking a Loan:

  1. You need to have some cryptoasset for securing a loan and choose the currency of your loan. If you're wondering which assets can work as collateral or loan currency on CoinLoan, Figure 1 aims to help to figure things out.
  2. Please be informed that you’ll be able to borrow fiat money equivalent to 70% of your collateral market value. It means that depositing crypto worth $1000, you’ll get $700 loan at least (70% of $1000).
  3. To withdraw your money, you can choose between SEPA, AdvCash, or Alfa-Bank (for RUB).
Figure 1: How assets work on CoinLoan

5 Steps to Getting a Loan:

  1. Register an account.
  2. Verify your identity.
  3. Deposit crypto as collateral.
  4. Take an Instant Loan OR find an appropriate application from a lender.
  5. Withdraw fiat funds from the platform.

6 Questions You May Have as a Borrower:

  1. When can I repay a loan?
    For short-term loans for a period up to 30 days you’re to repay once at any time. For long-term loans, you’re to repay partly every month.
  2. Can I make full early repayment of the loan?
    Yes, you can prepay the loan at any time without any penalties or commission.
  3. What will happen if I am not able to repay the loan or forget to do it?
    A few days before the scheduled repayment date, the system will send a Repayment Reminder via email. If you can’t make the repayment, the system will automatically liquidate a part of the collateral (cryptoasset).
  4. What will happen if the cryptoasset market value falls during the loan use?
    If the collateral market value falls significantly, the borrower can do one of the following:
    - Increase the collateral amount.
    - Repay a loan in advance.
    - Do nothing, and the system will automatically liquidate the collateral if the value will continue going down.
  5. How safe is my cryptoassets which are stored on CoinLoan platform?
    We store customers’ assets at qualified custodian BitGo with $100 million insurance from Lloyd’s.
  6. What are the limitations on the terms and amount of the loan?
    The minimum loan amount — an equivalent of 100 USD, the maximum loan amount is unlimited.
    You can take a loan in a term starting from 7 days to 36 months.

Thanks for reading! Please don’t hesitate to contact us if any questions arise😊

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