Get Bitcoin Loan Instantly Worldwide
Bitcoin is a phenomenon of the financial world that has left us speechless again and again in recent years. Especially due to its enormous price fluctuation in an incredibly short period of time. As an investment and trading asset, Bitcoin is unrivalled. No other asset performs such extreme bull runs as BTC did already repeatedly.
And for understandable reasons. The technology behind the most famous cryptocurrency borders on genius. The concept of the Open Blockchain as an immutable information store offers completely new possibilities to the world. These include, for example, secure peer-to-peer value transfers that do not require trust or a middleman, such as a bank.
Bitcoin finds its way into many areas of the financial world through the trust that the cryptocurrency enjoys after more than 10 years of existence. Not least e.g. into the field of the loans.
The good thing about Bitcoin loans is that in many respects they are handled differently from normal credits. There are different rules applying to loans that get backed by BTC. Those rules not only simplify the credit business, but are also beneficial to both parties, the lender and the borrower.
The most important Aspects of Bitcoin-secured Loans:
1. Loans backed by BTC are available worldwide
Most companies that offer Bitcoin Loans offer their services worldwide.
In principle, there are no regional restrictions. No matter if you come from Europe, USA, UK, India, Nigeria or South Africa, loans against cryptocurrency can be granted anywhere.
The only thing that could be is that you come from a country where Bitcoin financial services are forbidden or Bitcoin itself is forbidden. There may also be other unusual and rare legal situations that could prohibit the taking out of a Bitcoin loan. However, we are not aware of such a case. We are not experts in this field.
2. Immediate Availability
You get a Bitcoin loan immediately, or usually within a few hours.
Fortunately, the application process is way simpler, less bureaucratic and extremely time-saving. While for a traditional loan you have to make an appointment with the bank to discuss many details and sign many papers, applications for Bitcoin credits are ridiculously simple. You simply register on a provider’s website, verify your account, and then create a loan application within your account. This request is answered on the same business day and the credit can begin as soon as the Bitcoin pledge is deposited.
So you get a Bitcoin loan approved immediately and paid out worldwide.
3. Bitcoin Loan Interest Rate
The interest rates of loans against Bitcoin aren’t higher than the interest rates of normal bank loans. This is certainly something most people wouldn’t have expected. In fact, Bitcoin Loan interest rates are in the average range. Here is a list of the interest rates of the providers we know in the industry:
| Company | Interest Rates per Year | Loan-to-Value | Loan Amounts | |
| Unchained-Capital | 8.5 – 13.5% | 50% | $10,000 to unlimited | view offer |
| BlockFi | 4.5 – 11.25% | 50% | $10,000 to $100M | view offer |
| YouHodler | 3% – 13% | 85% | flexible | view offer |
| Nebeus | 6.12% – 10.55% | 72% | €250 to €250,000 (higher upon request) |
view offer |
| CoinLoan | 5% – 12% | 60% | $100 to unlimited | view offer |
| Nexo | 8% – n.a. | 50% | $500 – $2,000,000 | view offer |
| HodlFinance | 12% | 50% | $50 – $25,000 | view offer |
4. Bitcoin Personal Loans and Commercial Loans
It is also the case that BTC covered loans are granted both to private individuals and to companies. There may be different minimum amounts depending on the provider.
5. No Taxes
Bitcoin Loans offer an opportunity to benefit from the current value of your cryptoasset. Without having to sell your BTC.
If you deposit Bitcoin as a pledge for a loan, you will receive cash that you can dispose of. You don’t have to pay tax on this money because it’s a debt and not a profit. This advantage is enjoyed by many BTC owners who need cash immediately for investments or to make tax payments, but do not want to sell their cryptos for this reason.
6. No Credit Check
One aspect that is particularly beneficial to many is the fact that Bitcoin secured loans do not require a credit check. Here, too, it is once again noticeable that the crypto sector is generally more liberal, with fewer regulations and shackles.
Also great: The Bitcoin loan will not influence your credit score. Bitcoin loans are completely outside the credit score system.
7. KYC / ID ?
Bitcoin Loan companies are regulated and licensed financial service providers. This means that they are obliged by law to serve only ID-verified customers. So you cannot apply for loan before you have verified your account. You have to provide official identification documents, and possibly also a proof of residence.
This procedure may annoy many crypto enthusiasts because they prefer anonymity and do not want to have to justify themselves. This is understandable, but unfortunately in the area of secure crypto-covered loans this is currently not possible.
On the other side, a loan issued by a licensed and regulated company also offers the borrower a high degree of security. Because these companies do not have the opportunity to get out of the dust with customers’ deposits so easily.
There may be Bitcoin Loan providers that do not pursue a KYC policy and offer loans on an anonymous basis. However, with such providers there is no guarantee that you will actually get your BTC back in the end.
In the crypto area there are many online providers for certain services based on anonymous offshore companies. With such providers there is always the danger that they will get out of hand with the Bitcoin deposits of their users. And there is nothing you can do in this case to get your coins back. So it is not necessarily advisable to use services where you don’t have to verify yourself.
8. How exactly does a Bitcoin loan work?
In the application that you fill out in your account, you specify the term and the amount.
The BTCs you have to deposit for it are about twice the value of the money you get (Loan to Value Ratio). This is due to the volatility. After all, price could collapse sharply within the first month. So BTC’s USD value could fall by half, and the Bitcoin deposit would then still be worth as much as the money you’ve got cashed out.
It is understandable that the lender wants to protect himself from the fact that the value of the deposit, which serves as collateral for him, does not slip in a flash below the value of what he has lent. Sure.
Once the loan has been approved, the first thing to do is to send the Bitcoin deposit to the address where it will be kept for the duration of the loan.
As soon as the BTC transfer is confirmed, the credit is paid out immediately.
Now you have to pay the interest fee to the lender on a monthly basis.
If the BTC rate drops by a certain percentage during the loan term, you will either have to deposit more Bitcoin in order to recover the loan-to-value ratio of 50%, that was agreed. Or you can settle the difference that has arisen from the price loss with fiat money. You only have to bring the ratio of loan to value back to the 50%. Whether you do this with another BTC or with a partial repayment of the money is equivalent.
When the loan period comes to an end, you can decide whether to refinance the loan with a new one, or whether to raise the sum now and pay back the money normally in full in Fiat currency.
If the BTC price should have risen to the end of the loan term, you could pay the loan off with the deposited Bitcoin as well, and would even still get the surplus BTC back. How much you’d get back would depend on how far the price would have risen, of course.