CoinLoan.io Review 2019

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CoinLoan: Peer-2-Peer Lending Platform

CoinLoan is a peer-2-peer crypto lending platform, a meeting point for borrowers and lenders across the world. The platform enables you to borrow fiat with minimum interest and effort or become a lender, or earning interest by providing loans to other people.

Created on October 2017, this Estonia based company stands out by its decentralized approach. As the firm itself is only a platform for transactions, with all money lent or borrowed is directly by customers – both corporate or private. CoinLoan focuses on providing a stable, secure, and risk-free environment with guaranteed repayments and secure transactions. The company is fully licensed and operates within the European Union.

Lend and Borrow Money With CoinLoan

The company enables you to reliably, safely, and easily borrow and lend money worldwide. With only a few clicks of a mouse, you will be able to register an account and log in, getting full access to all available services, tutorials, and guides no how to use the platform.

Lend Money

As a registered CoinLoan user, all it takes is just a few clicks to access the lending platform. From there, you can start creating cryptocurrency backed loans. With this firm you decide how the loan should be structured:

Decide what assets to accept. When creating a loan, you will be able to determine what cryptocurrency a borrower will have to deposit in order to get the money. You will be able to pick from six different assets: Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Monero. Accept just one, or all of them – it’s your choice.

Set a lending reserve. Set a total lending amount on this and other offers. It will be your lending reserve limit.
Loan limit. You decide what can be the minimum and maximum loan limit other people can borrow.
Loan term. Control the minimum and maximum loan duration. You can set a period of as little as seven days or up to three months.
Interest rate. That’s right – you can even set up your Interest rate. In theory, the lower the interest rate, the more customers you can get. On the other hand, nothing stops you from setting up high-interest rates if the demand is there.
Repayment option. With CoinLoan, you can even set your repayment options. Decide between an interest-only loan or principal + interest.

Setting up loans is easy, and you will be able to start making money from day one. Loans will become available the moment you create them.

Store and Exchange Cryptocurrency

CoinLoan also works as a cryptocurrency wallet, enabling you to store and exchange crypto securely. As for now, the company supports Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Monero, Ontology, and CoinLoan Token. Please keep in mind that to be able to deposit and withdraw assets, you will be required to set up a Two-Factor Authentication (2FA). Apart from being a secure cryptocurrency wallet, CoinLoan supports also many stablecoins: TrueUSD, USD Coin, Paxos Standard Token, Tether, EURS, and Dai. Naturally, you will be able to deposit and withdraw fiat currency: US Dollars, Euro, Pound Sterling, and Russian Rubles.

The company also works as a cryptocurrency and fiat exchange. By using the service, you will be able to exchange assets with almost perfect rates instantly and freely — just pick the desired pair and tap the “Exchange” button.

Borrow Money and Create Requests With Ease

CoinLoan is a service focused on borrowing assets that incorporates some exciting features. First of all, the platform enables you to borrow not only fiat but also cryptocurrency: BTC, ETH, LTX, and XMR, with crypto as collateral. You will be not only able to pick an available loan from CoinLoan marketplace, but also create a loan request, with specific, own requirements:

Set how much you want to borrow. CoinLoan supports not only crypto but also stablecoins and fiat currency;
Decide on how much collateral you want to deposit into your CoinLoan Vault. You can pick from Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Monero, Ontology, and CoinLoan Token;
Set your interest rates and loan term. Not satisfied with the interest rates on the marketplace? Set up your own;
Decide on Loan-to-Value Ratio. CoinLoan allows you to set up your own LTV ratio, anywhere from 5%, up to 70%;
Flexible repayment options. Decide on how you want to pay back your loan. You will be able to choose from interest-only or principal + interest.

Getting a Loan with CoinLoan

To request or pick a loan, firstly, you need to create and verify an account. Registration is effortless and fast, with the first step only requiring you to provide an email. After confirming your email, the system will grant you restricted access to the platform – depositing assets and requesting loans requires to pass a KYC identity verification process, available under the “My Account” section. You will be required to provide the following information:

• Name and surname;
• Date of birth;
• Place of birth;
• Phone number;
• Residential address.

Keep in mind that during the process, you will be required to fill all the details of ID or passport, as well as submit both scans of the document and photo of you holding it. After submitting all necessary information, CoinLoan will verify it, which may take up to 24 hours. The procedure might seem to be quite demanding, but the company is fully licensed and therefore has to adhere to strict KYC/AML requirements. Services offered by CoinLoan are available worldwide, with only small restrictions due to local regulations.

CoinLoan and Credit Score

Because every loan is fully collateralized, cryptocurrency-backed loans facilitated by CoinLoan don’t require a credit score check, nor they should. What is more, even if you will not be able to pay on time, your credit score will not be affected.

Collaterals accepted by CoinLoan

The services offered by CoinLoan are fully peer-2-peer, which means that the accepted collateral will depend entirely on the person issuing the loan. In general, a loan provider will be able to request Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Monero, Ontology, and CoinLoan Token as collateral – all of them, or even just single type of asset. If you are not satisfied if a particular offer, you can always fill a specific loan request.

One of the most critical aspects of every loan is the amount of time it takes to receive the money. In the case of CoinLoan, if you opt for using already available loan offers, you will receive the loan within seconds. After accepting the terms, the loan will be immediately transferred to your CoinLoan wallet and able to be withdrawn. On the other hand, if you decide to issue a loan request, it might take some time before someone will be interested in accepting your terms – it all depends on how attractive is your offer.

How Much Can You Borrow

When it comes to minimums, CoinLoan can support loans as low as 100 USD or EUR. If you opt for crypto-loan, the minimum you will be able to receive depends on the preferred coin: 0.01 for BTC, 0.25 for ETH, 0.5 for LTC, and XMR. On the other hand, there are no limits when it comes to how much can you borrow – it all depends on how deep is your crypto pocket and if you can find a person willing to lend you.

Loan-to-Value Ratio

Loan-to-Value ratio (LTV) is one of the most important factors when it comes to cryptocurrency-backed loans. LTV determines how much collateral you have to deposit to receive a given amount of fiat or crypto. In those terms, the CoinLoan offer is quite competitive, mostly because there is no set limit.

CoinLoan serves only as a marketplace, and a lender or person who is requesting funds always determines the LVT. As for now, you will be able to pick a loan-to-value ratio from 5%, all the way up to 70%. That means, if you want to borrow, i.e., $10,000, collateral might be anywhere between 1.80 BTC and 25.27 BTC with coin priced at $7913. Because of the available flexibility, loans available on CoinLoan can be both highly conservative or risky, with high returns.

CoinLoan.io Loan Term

CoinLoan is also flexible when it comes to the Loan Terms. As a registered user, you will be able to pick a payment plan that best fits your needs. Loans can be both short term (7-30 days) and long term (2-36 months). Please keep in mind that if you opt for a short term loan, you have to pay in one instance. If you decide to go for a long term loan, payments have to be made monthly, on a fixed schedule.

Remember that although the loan will be available the moment you accept it, cashing out might require some time, depending on how you want to do it. If you decide to cashout via cryptocurrency or stablecoins, your funds will be available within minutes. On the other hand, if you decide to cashout via fiat, it might take several days before your funds will arrive at your bank account.

Interest Rates

CoinLoan also offers fully flexible interest rates, decided by lenders or people requesting a loan. The recommended value is set at 12%, but it can also be anywhere from 1 to 100% interest – both if the loan is long or short term. On top of that, there is also a 1%, one-time payment service free for CoinLoan for facilitating the transaction. Service fees can be paid in loan currency, or with 50% discount, by using CoinLoan Tokens.

How you will be paying interest is also flexible, and depends on the loan itself. If you opt for a short term loan (up to 7 days), both loan and the interest have to be paid simultaneously, in the loan currency. If you decide to go for a long term loan, you will be able to choose from:

Principal and interest formula. That means principal and interest are equally divided into monthly payments, paid every month, while the percentage of the principal loan increase.

Interest-only formula. You will be paying only interest rates without the principal. As you pay only interest, the loan is quite cheap, but keep in mind that on the last loan, you will have to pay the whole principal in one go, on top of the interest.

Security Measures

CoinLoan is a fully certified and secure platform that meets the world’s highest security standards used by banks and financial institutions. While using CoinLoan, your connection will always be encrypted, with the platform itself ongoing major vulnerability scans each day. On top of that, CoinLoan introduced a bug bounty program for white hat hackers, making sure every security flaw will be worth reporting and immediately patched. From the user side, while registering on the platform, you will be requested to set up a Two-factor authentication via Google Authenticator. This app can be downloaded both on iOS and Android, ensuring that only the person holding the token will be able to log in.

With CoinLoan high level of security covers assets as well. All cryptocurrency and stablecoins are held in multisig, cold storage, on separate devices that have never been connected to the network. What is more, CoinLoan distributes the parts of the keys geographically, using safe bank deposits. That approach ensures robustness even during natural disasters: floods, earthquakes, fires, and more.

Price Changes and Collateral

By facilitating both crypto and stablecoin loans, CoinLoan services might not be affected by drastic price changes. By creating a loan, you will be able to set a Loan-to-Value ratio as low as 5% or use stablecoins, basically preventing any margin calls. On the other hand, please keep in mind that CoinLoan allows the LTV ratio to be set as high as 70%, which might create some risks.

What Happens if Price of Crypto Goes Down

In the first scenario, let’s assume you decided to go for a bitcoin-based loan with a 50% LTV ratio, and the price of bitcoin suddenly plummeted. If the price of bitcoin will keep falling and reaches 90% the loan-to-value ratio, you will receive a margin call. If you don’t want your collateral liquidated, you will have to repay your loan as soon as possible or add extra collateral. If you fail to do so and the LTV hits 92%, your position will be automatically liquidated.

What Happens if Price of Crypto Goes Up

Any accepted on CoinLoan has fixed rules that you need to follow. As you need to pay what you owe with the borrowed asset or currency, rising cryptocurrency prices will only come handy if you decide not to pay the loan. For example, if you collateralized bitcoin on a one year loan, past performance shows you have high chances that the asset will increase in value. That means that if the collateral is used to pay for the loan, less of it will be used. After the loan is satisfied, a reminder of your funds will be released to your wallet.

CoinLoan Customer Support

CoinLoan is Estonia based, therefore you should expect to reach it during regular business hours, GMT+2 time. You can do so via email: support@coinloan.io or via the online chat available on the website. It’s worth to check the FAQ section as well: it’s quite extensive so you might find lots of right there.

The company is represented on multiple Social Media platforms where users can get in contact:

Twitter, Facebook, Medium, Telegram, and in the Reddit forum.

Advantages and Disadvantages of Using CoinLoan

By being a marketplace for lenders and borrowers, CoinLoan offers something different than other crypto-lending services. Because of it, the company has some unique advantages:

Be in control. CoinLoan enables you to create your loans and decide on almost everything. Set your loan currency, interest rates, terms, and repayment structure;
Low fees. CoinLoan fee is 1% flat, or 0.5% if using CoinLoan Token;
Comprehensive platform. You can not only borrow and lend but also store and exchange many cryptocurrencies and stablecoins.

Keep in mind that no service is perfect. CoinLoan has some disadvantages:

Interest: You earn interest only if someone decides to take your loan offer;
High risk. Some loans are up to 70% LTV ratio, which might be risky;
Low amount of loans. As of now, the service does not offer many loans. It’s only a marketplace, so the loan you are looking for might not even be there.

CoinLoan: Should You Pay Tax?

The company itself serves only as an intermediary, connecting borrowers and lenders. Because of that, you are responsible for paying any taxes on your gains, loans, or received interest. CoinLoan operates worldwide, in over hundreds of jurisdictions. There is no set of rules on how the taxes are calculated. If you are not sure how to pay or should you pay tax, please contact your local tax advisor.

CounLoan.io Reviews

Although a pioneer in its segment, CoinLoan is yet a popular company, which can be seen both by the number of loans offered and reviews. Between a few there are, customers mosty are satisfied with the quality of the service and the freedom CoinLoan offers them. On the other hand, the CoinLoan marketplace still suffers from low liquidity, and finding the right loan can sometimes be quite problematic.