CoinLoan is a decentralized lending platform that allows users to borrow and lend money secured by crypto assets.
The goal of CoinLoan is to solve problems in dire need of solutions in the lending industry for both borrowers and lenders; at the same time, it aims to improve the process as a whole to make it cheaper, faster, and more efficient.
Fiat currency holders will have the ability to generate attractive interest on their funds while digital asset holders can convert their cryptocurrencies into fiat easily without the need to liquidate their assets.
How it works is simple; a borrower in CoinLoan will offer cryptocurrencies (such as Ethereum or Bitcoin) as collateral for their loan requests. After that, they will quickly receive a fiat currency loan that has a maximum value of up to 70% of the collateral’s total value.
Of course, there are other features to the platform that will be discussed later in this article.
CoinLoan is an existing company established in 2016; CoinLoan aims to release the full platform by 2018 with mobile apps for both iOS and Android devices to be released on the same timeline.
In CoinLoan, you temporarily exchange your digital assets in return for traditional fiat currencies which include the USD, EUR, GBP, and even CNY among a large list of accepted currencies.
With CoinLoan, cryptocurrency holders can get easy loans in fiat with their digital assets. To acquire a loan, the borrower must first create a loan application, which includes the terms and details of a loan (e.g loan period, total loan amount etc.)
Once the application is completed, CoinLoan will automatically look for a lending offer that matches the borrower’s requests.
In the case of successful loans, it can be repaid monthly or in one go (only available for loans of up to 60 days). Once the loan and the interest rates are paid fully, the collateral will be returned to the borrower instantly.
Borrowers can request for refinancing if they cannot repay a loan; otherwise, a part of the collateral will be sold to recoup the loan’s payment.
A unique aspect of CoinLoan is that interest rates can be offset by the growth of the cryptocurrency. For example, if a borrower pledges 1 BTC and BTC grows by 100% during the loan, the borrower not only gets the loan, he or she also gets to earn along the way.
On the other hand, any legal individual or firm with fiat money can become lenders on CoinLoan.
Starting off as a lender is incredibly simple, the lender only has to deposit his or her money into their personal CoinLoan account; this can be done in several ways which include SWIFT and SEPA payments.
The lender will then create a loan application that includes details like:
- The total loan amount
- The currency to be loaned
- The interest rate (CoinLoan will suggest recommended rates based on current market conditions)
- The loan term
- Any additional parameters like the possibility of early or partial repayment or the lowest amount for a loan
Once that’s done, it’s just a matter of getting the right offers which is done automatically by CoinLoan for lenders to choose.
CoinLoan users can also purchase a debit card that works exactly the same as normal debit cards (like cashing out at ATMs, for instance) and is delivered worldwide.
Borrowers can receive credit funds in fiat currencies instantly and use it anywhere debit or credit cards are accepted, even at retail terminals.
CoinLoan presents a host of benefits for both lenders and borrowers compared to today’s financing system.
The benefits for lenders include:
- Automatic fund management: CoinLoan gives lenders total freedom on the terms and details of a loan. Once that is set, the system will automate everything from the start until the loan is fully repaid which means that investors can sit back and watch their funds grow.
- Flexible loan terms and conditions: As mentioned multiple times before, lenders have great flexibility in determining the terms of their loans; they are not restricted by anything other than the market demand itself.
- No risk lending: CoinLoan has a guarantee that lenders will have their loans fully repaid (including interest rates) even in worst-case scenarios.
- Global coverage with zero limits: CoinLoan works all across the world (with multiple currencies supported) thanks to its decentralized nature and with a minimum loan amount of $50, there are literally no limits to loans on the platform.
- Complete regulation and safety: CoinLoan’s security-first policy ensures that all funds and loans are kept secure; the platform is also legal and licensed in Europe as a payment institute.
The benefits for borrowers are:
- Direct fiat loans and transactions: CoinLoan allows users to directly get fiat money without the need to sell their digital assets.
- Easy deposits and withdrawals: Loans can be withdrawn at banks or physical cards easily.
- Integrated virtual and physical cards: CoinLoan offers users the choice of virtual and physical cards. The cards can be added to both Apple and Samsung Pay or used like a normal debit card all across the world.
- No credit checks and flexible loan terms: There is no need for credit checks in CoinLoan as all loans are customized to each borrower; the platform automatically estimates risk as well as selecting loan terms and conditions on an individual basis.
- Fully automated processes: All loan processes are automated for ease of use as well as maximum efficiency in applying or receiving loans.
- Refinancing and individual loan management: Borrowers in CoinLoan can refinance their obligations to extend the loan period; they can also close a loan by selling parts of it to the market.
CoinLoan will be launching a token sale for the CLT token, the platform’s official utility token. CLT will be used to power transactions on the platform’s ecosystem.
Investors who purchase CLT during the pre-ICO or ICO will be able to secure loans without fees in CoinLoan. Token holders also have the advantage of reducing a loan’s interest rate with CLTs.
Token name: CLT
Token base: Ethereum (ERC-20)
Token supply: 22,000,000
Token sale duration: 26th November, 2017 – 29th December, 2017
Token sale target: $3,000,000 (minimum cap)
Token exchange rate: $ 2 = 1 CLT