Lending/Loans

General

Name
CoinLoan

Based in
Estonia

Founded
2017

Currencies

Coins
25

Fees

Lending Fees
0%

Borrowing Fees
1%

Liquidation Fees
7%

Versions

Desktop

Web

Android

iPhone

CoinLoan

Digital Assets are the way forward, and most people have made them an intrinsic part of their lives. Cryptocurrency has transformed the world of finance, giving shape to the evolution of blockchain-based affiliates like CoinLoan. This article discusses the benefits, drawbacks and everything CoinLoan has to offer as a lending platform.

Pros

  • Provides an easy-to-use platform

  • Provides fiat and crypto loans to borrowers

  • Has flexible terms

  • Has no withdrawal or deposit fees

  • Offers both fiat and crypto lending

  • Loans are provided with crypto collateral

  • No fee for lending

Cons

  • Interest earned is lower if CLT is not used

  • The actual returns can be lower

About CoinLoan

CoinLoan was established in the year 2017 and is a regulated financial institution under the Estonian Financial Authority. It, however, operated worldwide. CoinLoan is responsible for the regular and diligent upkeep of complex KYC (Know Your Customer) and AML (Anti Money Laundering) requirements to ascertain all procedures are compliant with European and International regulations.

QUICK FACT

CoinLoan – a licensed & regulated crypto lending platform to manage your crypto assets

Where is CoinLoan Based?

CoinLoan, as mentioned, is based out of Tallinn, Harjumaa, Estonia. A pertinent question that most people often ask is why Estonia. That is because Estonian laws concerning blockchain, particularly cryptocurrencies, are some of the most business-friendly and promote the usage of newer technologies for the betterment of consumers. A crypto-friendly environment goes a long way in advancing technology and assisting transformations.

How is CoinLoan Regulated?

CoinLoan is regulated and licensed by several legal authorities, which include FATCA FFI registration, FinCEN MSB registration, MTR financial institution License, and MTR Virtual Currency wallet currency license. These regulations guide CoinLoan in their endeavour to provide a safe and secure environment for businesses and protect consumer interest.

Founders/ Team

The organisation is headed by:

Alex Markelov, CMO, and looks after Executive Operations
Dmitrijs Rozvadovskis, CPO, and looks after Executive Operations
Uliana Kuvtyreva, Marketing Manager, and looks after Digital Marketing

CoinLoan Sign Up And Verification

The Sign-up and verification processes for CoinLoan are simple. All one would need is to insert their preferred email ID and password, check or keep the checkboxes blank as per their preferences, and click the Sign-Up button. It will send an Activation Code to the mentioned email address, which would need to be copied and inserted within the activation code dialogue box on the platform. Do remember, checking the EULA box is mandatory. Otherwise, the registration process will not move ahead.

CoinLoan Interest Rates

Compound interest is earned by members who deposit funds in their CoinLoan interest account. Interest accounts are one of the essential features of the CoinLoan platform. It offers an interest rate of 12.3% APY for any deposit done in GBP and any other stablecoin.

How to Lend Out Digital Assets and Earn Interest?

Earning an Interest on CoinLoan through the deposit of one’s digital assets is an easy process. The three-step procedure is:

1. Verification of the user since KYC is an integral part of the regulatory submissions.
2. Transfer the assets to the CoinLoan account in any form that the consumer may choose. For fiat currencies, the platform supports SEPA, SWIFT, Visa, and MasterCard.
3. After the earning account has been opened, the interest earned on the digital assets starts accruing. One can withdraw the assets at any moment, and CoinLoan does not freeze any accounts.

The CoinLoan supported interest rates may fluctuate between 3-13 %.

Getting a Collateralised Loan

The following are the steps that will help the user get a collateralised loan:

1. Deposit digital assets as collateral.
2. Go to Instant Loan to select the following:
• Loan Term
• Crypto Collateral
• LTV
• Borrowing Amount
3. By setting the loan parameters, one can have an array of options available through collaterals, assets, and rates.
4. Once ready, click on the ‘Get Loan Now’ button.
5. The loan selected will appear on the ‘My Loans’ section, and the user can withdraw the money from ‘My Wallet’.
6. The borrower can repay the loan/interest as per the selected schedule or ahead of it. CoinLoan charges no early repayment fees.
7. Once the loan is fully repaid, the collateral is available for withdrawal from ‘My Wallet’.

Supported Coins As Collateral

The following are the coins supported as collateral:

Stable Coins

USD Coin
Tether
Binance USD
TrueUSD
Paxos Standard

Fiat

Euro
Pound Sterling
Rouble

Crypto

Bitcoin
Wrapped BTC
Ethereum
XRP
Litecoin
Monero
Chainlink

CoinLoan Fees

Below is the fee structure for various transactions on CoinLoan.

Borrowing Fees – The platform allows two options for paying the borrowing fees: Loan Currency and CoinLoan Tokens (CLT). Loan Currency attracts a 1% fee of the overall loan principal amount, and CLT provides a 50% discount. It is deducted from the loan currency fees, the calculation of which is based on the CLT market value.
Deposit Fees – CoinLoan charges no fees on deposits of Cryptocurrencies and fiats.
Withdrawal Fees – There is no withdrawal fee, though the withdrawal limit is $500,000 per 24 hours rolling period.
Liquidation Fees – The liquidation fee is equal to 7% of the liquidated loan collateral.

CoinLoan Security

With almost $356 million worth of crypto stolen in the first quarter of 2019, security must find a place in the foundation of the entire process. CoinLoan stores assets of consumers on BitGo, one of the most trusted custodians of digital assets in the world of cryptocurrency, with an insurance cover of $100 million from Lloyd’s.

All CoinLoan operations are mandated as per the Cryptocurrency Security Standard or CCSS. The assets are stored on offline, cold, and multi-signature wallets. Transactions take place offline and through separate devices which are or have never been connected to the network. This process by itself involves several individuals, each providing an independent check and balance. Furthermore, they offer measures such as 2FA to keep your crypto assets from falling into the hands of threat actors.

Conclusion

CoinLoan is indeed a reliable crypto loan platform and has, in a short period, been able to garner positive reviews and a sizable community of users. The platform offers many options, both in the loan segment and the coins on offer. With excellent live support, an intuitive user interface, and a sophisticated mobile app, CoinLoan is developing rapidly. The interest earned on digital assets through CoinLoan is something that other platforms do not provide. It is indeed one of the best cryptocurrency lending platforms available currently.