There are a lot of cryptocurrency projects at the moment. And they offer a variety of services for the cryptocurrency market. One of the most useful opportunities is giving crypto loans.
It works like this: cryptocurrency lending platform simply connect borrowers to a registered lenders network. A borrower receive his/her cryptocurrency back once the borrower pays the loan.
Most platforms have loans backed by assets, including real estate. There are platforms letting users take Bitcoin or other cryptocurrencies loans.
The pros for lenders are obvious: they earn interest by lending their assets to borrowers. There are pros for borrowers either: they will be able not to sell their crypto if they don’t want to do that.
There are a variety of cryptocurrency blockchain platforms. But only the top ones are currently have the full functionality (not ICOs) and work internationally. Here are 8 of them.
The company’s mission is serving small businesses worldwide (like eBay, Amazon or Etsy sellers). BitBond connects credible borrowers with individual and institutional investors by leveraging blockchain technology (peer-to-peer basis).
All transactions are handled via bitcoin blockchain, so the platform is not any bank dependent. BitBond allows its users to borrow up to $25,000 dollars and to start from 1% per month.
To score borrowers’ creditworthiness (not covered by credit bureaus) they implemented the machine learning algorithm analyzing the data from ‘transactions of small business owners from accounts like eBay, Amazon, Etsy, MercadoLibre, Shopify, PayPal, bank accounts and many others’.
It is possible to lend Bitcoin and earn 13-20% interest. Still users are able to invest in USD or EUR.
The company has now over 150,000 of users and $11.000.000 loan volume.
The BlockFi project is in beta launch currently. It is located in New York (USA) and ‘offers USD loans to cryptoasset owners who collateralize the loan with their cryptoassets’ in 35 US states. Retail investors and companies (borrowers) have an opportunity to get a monthly interest in dollars or cryptocurrencies. Literally, borrowers get dollars without selling their crypto!
In case the value of the cryptocurrency increases, then it is kept in a storage until the loan is repaid full. There are different pros both for institutional and individual borrowers using BlockFi: competitive interest rates, liquidity, credit score impact (BlockFi reports all loans to Transunion).
Credible Friends (USA)
This is the mobile application letting its users to lend and borrow bitcoins from trusted people – from friend (available for iOS and Android).
It’s possible to add friends ‘by connecting via social media, importing contacts from your phone, or sending email invites’.
It works very simply: ‘Borrowers are charged 25% APR interest using the average daily balance method. 60% of all interest and fees goes to the lender. Interest charges are applied to borrowers accounts monthly, and profits are received by lenders as payments are made by the borrower’.
And, of course, the obvious benefit of this platform is the opportunity to make new trustworthy friends.
Kambo platform offers non-purpose loans secured with Bitcoin and Ethereum as collateral.
This platform is a part of the Global Kapital Group family. It is a fintech company established in 2010 with offices in 18 countries and 1,000+ employees.
Kambo’s APR interest is 14%. The platform offers 12-months loans with the ability to renew or re-pay the loan anytime during its term. The LTV requirement is 50% upon initiation. The loan amount usually varies from $1000-10000.
The benefit of using Kambo is its trustworthy and immediate funding for idle crypto assets.
Nebeus is a so-called crypto bank allowing users both buy and sell cryptocurrencies. It also provides users with the opportunity to have fiat loans against BTC and ETH for 20% interest rate.
A lender makes an inquiry for a loan and borrowers receive an email alert. There are options of getting a loan from one investor or a few different ones.
Othera is an Australian fintech company based in Sydney and launched in 2015. They incorporate 2 tools for loan originators:
- Blockchain Loan Origination Platform allowing lenders to ‘digitize, segment and price whole or partial loans and convert them into digital loan token’.
- Digital Asset Trading Exchange: ‘a marketplace which enables trade of digital loan tokens between loan originators and investors. The exchange helps lenders to recapitalise their balance sheet and provides investors with means for analysing credit risk and an opportunity to invest in fixed income digital assets’.
Poloniex is one of the biggest crypto currency exchanges in the market. Also, it supports 12 cryptocurrencies for lending, including Bitcoin, Ether, Doge, Dash, Litecoin and more. The platform does not offer fiat lending.
Cryptocurrency owners can borrow their digital assets to margin traders on this platform. This way, users are eligible to have 3 different accounts: for exchange, for margin and for lending.
Unchained Capital (USA)
US individuals and companies can take loans with their Bitcoin and Ether assets. The minimum loan is $10K. Fixed rate loans are between $10,000 and $1,000,000. The platform works with international borrowers too. But the maximum amount to lend for them is $100K.
It’s necessary to register and after being approved by the team, you are able to take a loan.
The APR is 12-18%. The loan length is 3-60 months. LTV ratio is 50%.
Moreover, ‘If the value of your collateral drops by 25% we will request more collateral or a principal payment’ and ‘If the value of your collateral drops by 45% we have the right to repossess your collateral and sell it to recover principal and any outstanding interest’.