Day by day cryptocurrencies and blockchain technology are opening up new doorways. Whether it is security, insurance or digital finance. We are entering into a new era, CoinLoan s now looking to bridge another gap between the digital world and the world of finance.
What is CoinLoan
CoinLoan is an innovative project which will merge the current financial lending system with cryptocurrencies. Through CoinLoan the users are able to change between being both the lender and the borrower.
The borrowers will be able to use the cryptocurrency as collateral and receive fiat currency in return. They can receive up to 70% of the market value of their digital assets. To apply for a loan, the borrower creates an application, which specifies the terms of the loan. This information will be used to help match them up with a lender with terms which are similar/the same as.
During the loan term, its costs as an interest rate can be offset by an increase in the cryptocurrency
value. As such, borrowers will be able not only to retain the blockchain assets, but also to earn.
Lenders can deposit fiat currency into their CoinLoan account, they then create a loan application. This will indicate the interest rate (CoinLoan will suggest a rate), the currency, the amount of the loan and any additional T&C’s (early repayment, term etc.) Both the lenders and borrowers digital currencies and fiat currencies are stored securely in the CoinLoan system.
CoinLoan shares almost no similarity to standard banking processes for lending. There is no applications to process and other standard formalities we have grown used to over time. There is also no need for a credit scoring system to take place as loans are secured against your crypto assets.
Why use CoinLoan
The cryptocurrency market is increasing at an alarming rate. Bitcoin has increased by over 300% in 2017 alone. This leads on to one of the main issues in this new and developing industry. CoinLoan identified that there was a lack of “lending vehicles”. Currently if you want to receive fiat currency for your cryptoasset’s, you need to sell them on an exchange. There is nothing wrong with using this method to convert your digital currencies back in to fiat money. However, your tokens’s could significantly increase in value in a short space of time after selling. Especially the way prices have been booming recently.
CoinLoan now offers an alternative, using their system you can use your digital currencies as security for a loan in fiat money. The crypto coins are then held in a secure wallet in the protected CoinLoan system until the loan and interest is repaid. Upon maturity of the loan, provided all capital and interest is returned, the lender will receive their cryptoassets back.
CoinLoan will also be issuing their own payment cards which the fiat currency can be sent directly to. These cards will be compatible with Apple and Android pay. Lenders will be able to pay at pin machines, withdraw cash from ATM’s and shop online using these cards.
Initially CoinLoan will only be accepting the following cryptocurrencies as security:
CoinLoan will be issuing the following fiat currencies
Both the digital tokens and the fiat currencies used and offered on the platform will crease over time.
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