Cryptocurrency Backed Lending Platforms

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Thanks to the invention of cryptocurrencies a new kind of financial product has been made possible, the crypto-backed loans. Following is a brief comparison of 10 platforms that providing access to it. As we can see by looking at the table the options vary greatly respect to the interest rates, platforms fees, and currencies accepted. Besides, you should bear in mind the that companies tend have different methods for evaluating borrowers and that according to each particular risk assessment they can offer different financial options. It is interesting to notice also that although many of them claim to be peer to peer loans there are many cases in which the platform is the one that ends up doing the actual money lending. In order to have a broader view of these financial products it use useful to know that in the United States mortgage APR (annual interests rates) are round 4-5% and the average credit card APR is 15.07%.

An interesting feature that most of these lending companies have in common is an automatic mechanism to deal with coins volatility. You need to send a certain amount of crypto to a company’s wallet for backing up your loan, nevertheless the market price of crypto can become significantly lower in just a short period of time. This is why smart contracts play an important part in these new platforms. They allow the triggering of an alarm if the price is below a certain level and if nothing is done  after a certain period of time the loan is cancel, the crypto collateral is liquidated and later on sent to the corresponding lender’s wallet.

Following is brief description of the table’s contents. Loan term, minimum and maximum show the ranges of time you can ask a loan for along with its maximum and minimum amounts. Lending, collateral and interests currency enumerate the currencies in which the loan is made, collateral must be deposited and interests must be paid. Interests contains a percentage range at which money is lent, bear in mind that these percentages can vary with time. Time for getting the money states how long it takes since you requested the money until you can actually dispose of it. Repayment type shows when and at which frequencies you need to return the money lent and pay the interests. Fees displays the fees that are left to the platform, and who they are taken from. Loan is done trough enumerates which methods the platform utilizes for transferring the money. Places where it lends has the places of the world where the lending could be done. Finally, foundation date and initial investment contain the year at which the company was created and the capital that it was founded with.

CompanySaltLendingNexoETHLendCelsiusBlockFiCoinLoanNebeusBitBondGetLineBTCpop
Loan Term1 - 36 months1 - 24 months1 - 12 months1 day - 1 year1 year (renewable)1 day - 60 months (5 years)1 - 12 months6 weeks, 6 months, 12 months,
36 months or 60 months
1 day - unlimited7 days - 5 years
Loan Minimum50001000none1002000500.5 BTC$1,000 or 0.01 BTCnone0.01 BTC
Loan Maximum250000002000000nonenone10000000none10 BTC250000.5 BTC for unapproved profiles500 BTC
Lending CurrencyUSDEuro, USD & Tether BTC, ETH, LEND, DAIUSDUSDUSD, EUR, GBP, CNY, JPY,
RUB, CHF, PLN, CZK
USD, EUR, GBPBTC, USD, KSH (Kenya)BTCBTC (but is fiat tied)
Collateral CurrencyEther & BTCEther, BTC, BNB & NexoBTC, ETH, LEND, DAI and 180 more tokensEther & BTCEther & BTCBTC, ETH, Litecoin,Ripple,
Monero, Zcash & Dash
BTCBTCBTC & GET tokensINST1, BTCpop, BTCM, ETH and Clam
(around 200 alt coins)
Interests CurrencyUSDUSD, Euro, BTC, ETH & NexoBTC, ETH, LEND, DAI, TUSDCELUSD, BTC & EtherSame as borrowed fiat currencySame as borrowed fiat currencyBTC & USDTBTCBTC
Interests
(APR = annual %
MPR = monthly %)
APR 12 - 22%with nexo as collateral APR 8%
otherwise APR 16%
0.25% - 5% MPRAPR 5% - 9%APR 12% - 14%APR 0% - 100%APR 27%
APR 20% with NBTK
0.01 - 3.00% daily, depending on the lender
APR 7% - 25%
Average APR 20% depending on
the borrower's rating
0 - 1% daily depending on the lenderAPR 10% - 45%, depending on
the borrower & lender agreement
Time for getting the money1-7 days1-7 days7 days 1-2 days1-2 days3 days1 day average1 - 5 days1- 30 daystime for loan to get funded by BTCpop members
Repayment Type Monthly interests
Monthly interests + loan %
Monthly Interests
Early Cancelation accepted
Monthly interests + loan %Monthly Interests + loan %Monthly InterestsMonthly Interests + loan %
Monthly Interests
Monthly Interests
Each x% loan paid lowers x% future interests
Monthly Interests + loan %
Monthly Interests
Full repayment at the endDifferent Fixed repayments scheemes
Fees$25 or 1 SALT for membership
1 - 100 SALT according to the loan value
NoneBorrower .25% if collateral LEND, else .5%
Lender 5% of interests if collateral LEND,
else 10%
None1% - 4% of the loan1 CLT ($10) for borrowed loan
10% of interest gained by lending
10% interest gained by lendingBorrower pays 1% - 3%,
depending on loan length,
lender pays 1% at the end
30% of lender's profit
0.01 BTC to acces the platform
Borrower pays 1 - 5% of the loan,
depending on amount
Lender pays 5%
Loan is done trough (digital
wallets are always used)
Bank transferBank Transfer
Nexo credit card
Only Digital walletsBank Transfer
Debit Card
Bank Transfer or Wire
ACH (automatic clearing house)
Debit Card
Swift or Sepa Bank Transfer
Wire Transfer
Debit Card
Bank transferOnly Digital walletsOnly Digital wallets
Places where it lendsNew Zealand, UK and 35 US states WorldwideWorldwide except USEurope & US35 US statesWorldwideWorldwideWorldwideWorldwide except Cuba, India, Iran,
Nigeria, North Korea and Poland
More than 60 Countries
Foundation date2016201820162017201720172015201320172014 (refunded in 2016)
Initial investment$48.5 Millon $52.5 Million$16.5 Millon$50 Millon$56.4 Million$3.2 Millon$1.91 Millon$ 7.6 Millon$1.2 MillonUndisclosed amount

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