What is a Bitcoin loan?
Bitcoin Loan works like your standard term loan: It’s borrowed money that you pay back plus interest and fees over a predetermined period of time. You can pay it back in fixed installments or all at once, depending on your lender or your preferences. You can also get bitcoin lines of credit and short-term bitcoin loans.
That’s where most of the similarities end. Because bitcoin isn’t affiliated with any central government or banking institution, your typical bitcoin loan will be from other bitcoin users. You’ll also need to factor any commission on the current exchange rate into your fees.
How Can You Get A Bitcoin Loan?
If you are a genuine person, Getting a Bitcoin loan is not at all a tough task. Generally, all the Bitcoin Lending sites follow the following procedure:
- Register on the Platform.
- Get Your account Verified.
- Choose the type of Loan and the lending rates
- Get your loan approved within a few hours, receive your funds anywhere in the world.
What Do You Need For Bitcoin Loan ?
Unlike traditional bank loans, you do not need much verification to get your loan approved.
Here are the criteria’s which are generally taken into consideration by a lending platform:
- Government-issued ID. A scan of your passport is preferred because many of these sites are international.
- Verification of your address. Utility bills in your name are ideal.
- Verification of your email. Typically the platform sends a link or a code to your email address.
- Credit card verification. Bonus points if you can prove that you’ve consistently paid your credit card bills on time.
- Connection to your social media. The more the better — which helps prove that you’re a real, active person.
- Connection to online payment accounts. Platforms use your transaction history on online accounts like PayPal or eBay to verify that you pay for things on time without red flags in your past business dealings.
- Verification of income. Recent pay stubs, invoices or tax forms prove your ability to repay a bitcoin loan.
Here Are The List Of Top 30 Bitcoin Loan Company
BTCpop’s peer to peer lending is based on reputation, not a credit score. Quickly get bitcoin loan from other members or make some money by loaning the money you have. You set the terms. You set the amount.
BTCpop is a financial platform that is designed especially for cryptocurrencies. This platform provides its users with a number of tools and gives opportunities to do multiple crypto related business on the same platform.
BTCpop has started operating since 2014 and was founded in Great Britain. The founder of BTCpop is Lee Bartholomew, however, the company was sold in June 2016 because of management issues. The new owner ended up investing his own crypto savings in order to repay the lost cryptocurrencies of the members. At the same time, the website had a number of bugs, which have been fixed since 2016 and along with it a number of features were added.
Currently, BTCpop is rewriting its code and the company hopes to finish it soon in order to launch a new BTCpop platform with the improved versions of the current features in addition to an API. The company has moved from Great Britain to Majuro, Marshall Islands.
Bitbond offers you small business loans which are funded by investors from around the world. Bitbond achieve this by using the Bitcoin blockchain as a payment network to bypass transfer and exchange fees. That way we create a marketplace for investors and borrowers to meet efficiently online.
This allows small business owners to access working capital at no extra cost and independently of banks. You can access Bitbond even if you don’t have a bank account. With over 2 billion people in the world underserved by the banking system, we believe Bitbond represents a unique opportunity to bring small business loans to people in underserved regions.
Working independently of the banking system allows Bitbond to charge lower fees and interest rates than competitors. You can choose terms between 6 weeks and 3 years and repay in equal monthly installments. This way you can adjust the repayment to your cash flow and grow your business the way it suits you best. You Get Esaily Bitcoin Loan Just Follow Website Tos .
BlockFi founder, Zac Prince, hit bingo when he realized that a lot of people owning cryptocurrencies want to hold onto their digital coins but also need cash from time to time to finance various purchases.
Before BlockFi, cryptocurrency holders would have been forced to either sell their coins in order to raise cash or apply for a traditional loan that may require other assets to serve as collateral.
In essence BlockFi’s offering boils down to two services. Users can either deposit cryptocurrencies (currently limited to Bitcoin and Ether) in an interesting account or use them (including Litecoin) as collateral for a USD denominated loan. Especially the interest account has attracted a lot of attention, as BlockFi is promising an interest rate of six percent (compounding monthly) annually, to be paid in Bitcoin or Ether.
According to BlockFi, this “is an easy way for crypto investors to earn bitcoin while they HODL”. Unfortunately, the six percent isn’t fixed, and per the terms of service, BlockFi may choose to change the rate to whatever they feel like every month. When asked on Twitter, BlockFi founder Zac Prince confirmed that the company currently has no fixed methodology for setting interest rates. You Get Easily Bitcoin Loan Just Follow Tos
Nexo delivers the World’s First Instant Crypto-backed Loans, thus resolving a crucial inefficiency for the crypto world. Up to this very moment, no alternatives existed for digital asset owners to enjoy their crypto wealth except selling them. The innovative model of Nexo brings to the crypto community the best of both worlds – retaining 100% ownership of their digital assets while having immediate access to cash.
The Instant Cryptobacked Loans are an automatic, flexible and cost-efficient way of obtaining liquidity that is secured by the value of the client’s digital assets. The whole process is completed in just a few simple clicks. No hidden fees, no capital gains taxes, no credit checks. Transparency is guaranteed through the use of blockchain technology, smart contracts and algorithmic processes executed by the Nexo Oracle.
If you have a Paypal account and a credit card, then we recommend you to opt for XCoins for bitcoin loans. The service specializes in helping its customers acquire Bitcoins through Paypal using their credit cards. While most other such services and platforms have shunned Paypal, XCoins actively embraces the platform and is thus great news for all those who prefer to channel all of their financial dealings through Paypal.
The process for obtaining the Bitcoins remains pretty simple and basic. All you need to do is sign up or register on the service, give away your identifications details and verify your identity, and deposit the US dollars equivalent of the Bitcoins you need to borrow. You might even be asked some to submit a nominal processing fee to so be prepared for that as well.
LendaBit.com is a fintech startup created by professionals with a unique mix of blockchain-based project experience, financial expertise, and global market intelligence. We are confident that distributed ledgers, blockchain-powered services, and smart contracts will give rise to an entirely new digital world. This world will be a more convenient, friendly, secure, and prosperous space.
For lenders, the platform will help maximize their return from a reliable, blockchain secured lending tool. Crypto holders will get access to virtually unlimited sources of cash, while keeping their assets for future growth. With our platform, we will enhance the lives of businesses and individuals, and empower them in their move to a brighter digital future!
YouHodler is a Blockchain-based Financial Ecosystem focused on cryptocurrency-backed lending with fiat loans. YouHodler lending platform provides USD and/or EUR loans, secured by collateral in BTC, ETH, XRP, and other popular cryptocurrencies.
YouHodler has an innovative concept that allows users to hold onto their cryptocurrencies while spending on necessary purchases at the same time. As spending crypto assets today prevents cryptocurrency holders from gaining from any future growth in asset value, investors who buy low need to hold onto their assets in order to benefit from selling high. It’s a market where everyone is conditioned to HODL.
HODL Finance is the European digital lending company. HODL Finance issues loans backed by cryptocurrency and other digital assets. Founded by the shareholders of the peer-to-peer lending platform, SAVY, HODL Finance now serves clients around the world.
The service creators believe that blockchain and cryptocurrency are the main components of the digital economy. They are sure that cryptocurrency assets represent real value. When using the service, the fiat currency or cryptocurrency is used as a deposit. The system calculates the loan amount that can be provided, and the amount of collateral that must be paid. Then you choose the refund period, use the money received, and then repay the loan and get back your coins.
9. Salt Lending
SALT is the smarter way to hold and leverage your crypto for cash. Driven by transparent technology, superior security, unmatched expertise, powerful partnerships and access to industry experts, our products and services provide potential solutions for your financial needs.
The main advantage of SALT lies in its proprietary feature, the so-called credits supported by the blockchain. In essence, these are simple loans, which you transfer to your Bitcoin address as collateral in return for traditional currencies. Unlike a traditional mortgage or auto loans, one can use blockchain loans for any individual or institutional purposes.
Kiva is an open ecosystem where lenders from different countries come together to create chances for borrowers, as well as make their contribution to Kiva’s poverty reduction mission. The project operates in more than 80 countries on 5 continents. It has many partners, and although most of them are microfinance institutions, they can also be schools, NGOs, or public enterprises. They all have one common aim: the desire to make better the lives of people through safe and equitable access to credit.
The company provides loans in cryptocurrency only to those users who really need them and at the same time do not have access to financial services. The Bitcoin Loan percentage of loan repayment is quite high – 96.9%, which for cryptocurrency it is more than a good indicator. Typically, such loans are issued to finance agriculture, education, or creative projects.
ETHLend is a decentralized peer to peer lending platform that allows people all over the world to get a loan or become a lender. As a decentralized platform, using the Blockchain technology we enable you to get or fund a loan within minutes in a secure way.
ETHLend service is currently available worldwide. Only certain functionalities of the platform are not allowed to US citizens and residents.
ETHLend platform is decentralized, your assets are allocated in an Ethereum smart contract. The loan follows the contract logic making the process secure and the only parties able to interact with the loan are the borrower and the lender. The collateral will only be released to the borrower when the loan is paid back fully or to the lender in case of collateral call or when the loan wasn’t fully paid back at the end of the loan time.
Now you can lend, borrow or exchange bitcoin on a Peer to Peer (P2P) platform where everything happens in one place. It’s like having a special crypto-bank, but instead of having to deal with an intermediary that gets the best out of every deal, you become your own banker, securing loans or lending out money on your own terms.
Nebeus (http://nebeus.com) ensures that borrowers and lenders are able to use the service with confidence. ID and contact details verification are conducted at sign up — lenders don’t have to worry about some anonymous person making off with the money lent to them.
In addition, rankings are allocated, and offers are made available according to the borrower’s past performance on the platform. Thus, a lender must repay loans promptly in order to gain ranking points.
CoinLoan is a truly groundbreaking project. The CoilLoan platform uses a unique algorithm to offer maximum choice and flexibility for their clients – who are able to act as both a lender and borrower.
Lenders deposit their fiat money using international/local bank transfers or bank cards and request loans on their own terms (repayment, interest rates etc). Lenders either manage the loans themselves, or they can let our algorithm manage the loan completely on autopilot – thereby avoiding the manual creation and continuous monitoring of loan requests. If the borrower fails to return the funds, the system will automatically liquidate (sell) the pledged crypto asset and return the funds to the lender (including the interest rate), thereby ensuring the absence of risk and full repayment of funds.
BeeLend is a digital platform to facilitate direct lending between individuals. It connects investors (lenders), creditworthy borrowers and – optionally – guarantors to strike the best available loan deals amongst themselves.
With the help of BeeLend verified investors directly fund the loans requested by verified borrowers. Borrowers repay the loan installments to the investor on a regular – monthly – basis. Borrowers can enhance their creditworthiness if they ask for a guarantee. The members of the platform may also leverage on social media (eg. facebook) to gain attention for their loan listing.
As opposed to classic peer-to-peer lending companies BeeLend does not solicit the contractual agreement and loan transaction of its users without their active involvement in the process. BeeLend does everything for the member to find a suitable investor, guarantor or borrower, negotitate the best loan terms, prepare legal documents, track and monitor payments, but the contractual agreement of the parties and the money transfer takes place outside of the platform.
Poloniex is a well-known exchange and is one of the best Bitcoin lending sites available. The platform offers great liquidity options and a wide range of altcoins, which can then even be converted into Bitcoins.
The exchange was established back in 2014 and is based out of San Francisco, California. Currently, the team has decided to cater mostly to US residents, with plans to expand their business and extend support to other countries later on.
What are the eligibility criteria?
Getting a bitcoin loan might be less involved than going to a bank. But you still face basic eligibility requirements. To join a bitcoin platform and find investors willing to lend to you at a competitive rate, you generally must:
- Live in a country where bitcoin is regulated, such as the United States
- Hold a steady job
- Have a high trust score
Some Tips on Bitcoin Lending
Before you jump into lending your hard earned money, We would like to give you some quick tips.
- Check the person profile thoroughly before investing
- Never invest on someone who is a defaulter
- Do not invest more than what you can afford to lose
- Ask questions to the borrower, Don’t hesitate.
- Higher interest rates might end up into higher risk, so take the call accordingly
Bitcoin loans are still new and not fully regulated, so do proceed with caution when signing up on these services. In the future, these types of loans could become a feasible option of financing for those that do not meet the credit requirement of banks.