A loan industry is growing around Bitcoin. Bitcoin can be considered the best collateral ever, it is an extremely liquid, global market, and whoever holds the keys controls the Bitcoin. If you have Bitcoin it is relatively easy to put it down as collateral. No need to have good credit score or to be creditworthy. Using Bitcoin helps you build your reputation. Lenders create their reputation independently. The other side of the coin is that it is extremely hard borrow cryptocurrency without collateral.
There are no Bitcoin loans without collateral or free bitcoin loans. Don’t fall victim to crypto scammers. Most bitcoin backed loans do require verification. A few platforms such as Guarda offer crypto backed loans without KYC requirements. Fortunately, you don’t need a minimum credit score, a credit check, or a minimum income to apply for a crypto backed loan. Furthermore, you get the loan faster than other options such as banks.
How to Get Bitcoin Loan Without Collateral
Remember that you don’t need to have a credit history while making an application to get a Bitcoin loan. Therefore, you can get a Bitcoin loan with no credit check. Before taking a loan from a lender, it is important to do a thorough check and then compare terms such as the interest rates of the loan from different lenders.
Then make sure that you have all the necessary documents needed for verification. To access a bitcoin backed loan, you might need a video verification with an agent.
Once you have provided all the necessary documentation, the next step is to release the collateral, bitcoin in this case, to the platform. Once approved, you will get your loan in fiat currency.
if you are a “hodler” and you are in need of cash, you don’t need to sell your bitcoin. You can still “hodl” them and borrow fiat cash using your bitcoin as collateral.
Instant Bitcoin Loan With No Collateral
Are you a borrower and you need an instant loan or are you a lender and you wish to earn an interest? It is possible to get instant Bitcoin loan or lend without involving a third party through peer to peer lending platforms. The system works with digital currencies such as Ethereum and Bitcoin. Both the borrower and the lender do not need a bank account to take part in the loan market. The best place to get instant Btcoin loan or to lend is through online peer to peer lending platforms.
How to Get Instant Bitcoin Loan
To get an instant Bitcoin loan, the process is straightforward. When you borrow a loan, you repay it with some interest for the set period and some fees on top. Some lenders require repayment in installments while others require you to repay it all at once.
You need to have an account with the lending platform. You will then be required to verify your details before you can borrow. Then enter the amount that you wish to borrow, the period of the loan and the desired interest rate. In case there is a listed lender that is ready to lend at the terms you indicated, then the process is completed instantly. If that does not happen, the borrower will need to wait for offers so that he can review them and then accept the best offer to get Bitcoin.
In case you do not want to negotiate, you can get an instant peer to peer Bitcoin loan with BTCPOP. These loans are usually private and you can do anything you want with it, unlike standard loans where you have to declare why you need a loan. Moreover, they are not based on credit score but reputation.
Bitcoin Loan Without Verification or Collateral
There are no Bitcoin loans with no verification, free Bitcoin loans or Bitcoin loan without deposit. Also, there are no crypto loans without collateral. Don’t become a victim of scammers who promise to offer you a crypto loan without collateral. What happens is that Bitcoin is profitable; hence some lenders can give loans at low interest rates while using your Bitcoin as collateral. Other lenders give fast, instant Bitcoin loans while others give Bitcoin micro loans. The bottom line is that you get a loan in fiat currency and the lending platform keeps your Bitcoin as collateral. You can also get a loan in cryptocurrency using a high-valued cryptocurrency as collateral.
So, what happens then if you own Bitcoin and need a fiat currency loan? We will show you. It is easy. Make sure that you have all the necessary documentation to get a loan. Then look for a lender who will hold your Bitcoin as collateral and give you a fiat currency loan equivalent in return. Some platform may require you to go through the verification process, which may be a video call with the agent. By so doing, you get a loan to cater to your needs. In case of future appreciation of your Bitcoin, you don’t lose the value of your digital assets.
How to Get Bitcoin Loan
To get a crypto loan with the following platforms, you need to give cryptocurrency such as Bitcoin as collateral since there are no credit checks as it is the case with bank loans. Your creditworthiness is not based on your credit score. This means many people who can’t access loans from traditional financial institutions are able to borrow Bitcoin instantly.
Best Bitcoin Loan Sites
Getline used to be a Bitcoin lending company that offered bitcoin loans at low APR. It had an easy signup process and an informative website, but is not operational anymore. You only needed an email and a password to sign up. You could get a line of credit with fees structure of 30 percent for the lender. It charged 0 to 1 percent per day, depending on the lender. Getline had slow support while its system was buggy, maybe that’s why it ceased to exist. Lenders also paid high fees while there were some restrictions in some countries.
Nebeus Crypto Loans
Nebeus is a UK/Spain-based firm that deals with online lending. It also provides other crypto services such as trading, crypto renting, crypto insurance and remittances. Cryptocurrency holders can get instant cash loan of up to 80% of their Bitcoin value under Flexible Loan plan. Your crypto portfolio is the collateral for fiat-money loan. For a loan of $1000, you need 0.045818 Bitcoin as collateral. If your repayment period is 6 months, you will pay a total of $1,026 from monthly payment of $171. There are also no fees for early repayment if the loans are paid back after 30 days.
The minimum loan one can borrow is 0.005 Bitcoin while the maximum depends on the borrower’s reputation. Nebeus does not have an approval process, so it immediately issues a loan. You can transfer a loan to any credit or debit card in minutes in EUR, USD, or GBP. Here’s a list of Nebeus crypto loans supported countries.
Nebeus has two types of Loans: Quick Loans and Flexible Loans.
Nebeus Quick Loans
- Interest rate: 0%
- Cash: from 50 to 500€
- Term: 3 months
- Loan Origination Fee: 2.5%
- Free early repayment option
Nebeus Flexible Loans
- Interest rate: from 6% to 13.5%
- LTV: from 50% to 80% of your Crypto value
- Term: up to 3 years
- Loan Origination Fee: 0%
- Loan Limit: 250,000 Euros
- Early payment (before 30days) fee 2.5%
Nexo Crypto Loans
Nexo a crypto exchange and an instant crypto lending platform that was established in 2017. The platform works whereby the borrower deposits crypto assets into his wallet and in return gets an instant credit. For example, if you borrow $1000, you need 0.0479 Bitcoin as collateral. You can spend the money using Nexo debit card or you can withdraw it to your bank account. Nexo has over 40 fiat-money currency and it is operating in more than 200 countries.
Nexo was first to introduce instant crypto lending as one of the earliest crypto lending platforms. You can use BTC, BCH, BNB, ETH, LTC, XLM, XPR, NEXO tokens, and stablecoins as collateral. Once the loan-to-value ratio has been determined, you receive money in the form of stablecoin or fiat. You can get a 50% discount on the interest loan if you repay the loan in Nexo tokens. Interest for the loans starts at 5.9% APR. You can borrow from $50 to $2 million.
BlockFi Crypto Loans
We strongly advise you to take extra precautions when investing in BlockFi. In June 2022, the company secured a $250 million loan to boost its balance sheet following the recent crypto market downturn. Many crypto lending fintech are experiencing liquidity problems. In July 2022, Celcius Network, the crypto lending platform, filed for bankruptcy. It suspended withdrawals in June 2022. You are also advised not to invest into cryptocurrency more than you can afford or willing to lose. Generally, it is advisable not to invest more than 10% of your funds into crypto.
BlockFi was founded in June 2017 in New Jersey. If you have Ethereum, Bitcoin or GUSD, then you can apply for an instant loan with BlockFi bitcoin loan app. With the platform, you can earn an interest and borrow money using crypto assets as collateral. The platform offers interest accounts and quick loans in Litecoin, Bitcoin and Ethereum. The platform work this way; you send your crypto assets to a secure address and in return you receive dollars into your bank account. Every loan is given based on loan-to-value ratio to determine the value of collateral to be used. For instance, if you have 0.05 Bitcoin, BlockFi will give you a loan up to $1000.
Verification is required to get a loan from the platform. The platform has crypto interest account that earns an interest on daily basis. However, the crypto being used as collateral to back your loan does not also earn interest. The crypto loans duration is usually 12 months with an option to make early payments. The interest rates for the cryptocurrency loans start at 4.5% although it varies depending on loan-to-value ratio while deposits earn interest rates of 8.6% annually using the Interest Account.
BlockFi paid out over $35 million in interest to its clients in February 2021. The interest payments were comprised of 450 Bitcoin (BTC), 5,000 Ether (ETH) and $6 million in stablecoins.
SALT Lending Crypto Loans
SALT Lending was founded in 2016 in the US. It offers both individual crypto backed loans and business crypto backed loans. Once your cryptocurrency loan is approved, you get cash, TUSD, or USDC directly to your account directly to your bank account without additional costs. It is now available in over 46 US states, Canada, United Kingdom, Switzerland, UAE, Hong Kong, Vietnam, Brazil, Australia, and New Zealand.
If you do not have money and you need it, you do not have to sell your cryptocurrencies. SALT Lending allows you to use them as security to get a loan. Therefore, with SALT Lending it is possible to get a cash loan from $5,000 for 3 to 12 months and secure it using stablecoin. Maximum loan amount depends on the jurisdiction and other restrictions. You do not need to have a good credit score to qualify for an instant crypto loan since the platform considers one’s reputation. You have an option to repay the loan in monthly installments.
Furthermore, the SALT credit card is the first crypto card that lets you HODL crypto and spend cash. You also earn crypto rewards every time you swipe your SALT Card for your everyday purchases.
StackWise is a new product by SALT that allows you to get a portion of your monthly payment back to your wallet in the form of crypto rewards. Rewards are available in Bitcoin, Ether, or USD Coin. Once you start stacking crypto rewards, you can leave the crypto rewards in your collateral wallet to reduce your loan-to-value ratio (LTV) and minimize the risk of Stabilization or withdraw your crypto rewards and use the funds as you wish.
Octabis Crypto Loans
Octabis is a crypto lending platform that offers instant bitcoin loan no credit check. The platforms basically allows users to borrow cash with bitcoin collateral while keeping the bitcoin value. To get instant crypto backed loans, you don’t need to sign documents or go through credit history checks. The process is instant and online. The minimum amount to borrow from Octabis is 20 EUR, the maximum is 100,000 EUR. Currently, the monthly interest rate is as low as 1%, which means you pay 12% annually.
Besides, Octabis offers blockchain solution for businesses to start their own crypto lending business by integrating Octabis API or Octabis widget on their websites.
Anonymous Bitcoin loan: It is possible to get anonymous Bitcoin loan. Platforms that provide crypto loans completely private and anonymous with no account registration include Guarda.
Binance Crypto Loans
Binance is one of the largest cryptocurrency exchange platform in the world. The platform supports crypto lending for its customers’ crypto deposits. You can use crypto as collateral to get crypto loan or fiat money loan. Supported cryptos include BTC, USDT, BUSB, BCH, XRP, and DASH while EUR and GBP are supported fiat currencies.
The duration of the loan varies. Binance has loan terms of 7, 14, 30, and 90 days. If you want 1000 EUR loan, you need 0.05363077 Bitcoin as collateral. If your loan period is 90 days, you will pay back 1023.4 EUR. You can always repay in advance and the interest is calculated based on the days borrowed. It takes two weeks for the loan to mature. Also, the annual interest rate varies from 10, 15 and 7 percent for Tether, Binance Coin and Ethereum Classic respectively.
On June 13, 2022, Celsius announced that it was pausing all withdrawals, Swap, and transfers between accounts due to extreme market conditions. It has also filed for bankruptcy in July 2022. This means it Celsius crypto interest account is not available at the moment. Read the full statement here.
Celsius Network platform began its operations in July 2018. The platform gives loans where borrowers can use crypto as collateral. Their loans start at 1% APR. The minimum loan they offer is $500 with security of equivalent value. Celsius uses CelPay that allows free transfer of cryptocurrency from one wallet to another. If you borrow $1000 from the platform, you need to deposit 0.1154 Bitcoin as collateral. Your total interest for the period of 6 months will be $5.
In two years, the platform accumulated over $1 billion in crypto deposits. Besides, it has issued over $17 million as interest to depositors. Customers earn interest from their deposits when they transfer their crypto assets to their Celsius wallet.
Unchained Capital is a platform that offers private instant cryptocurrency-backed Loans (USA) and commercial crypto backed loans in the US and some countries around the world. Requirements on minimum size, interest rates, and other details differ between states.
While Unchained Capital lends in some foreign countries, our lending capabilities are currently limited outside the US. If you live outside of the United States, please e-mail us at [email protected] with details about your loan request. If we do lend in your country, our support is limited to loans for a commercial purpose and a minimum loan amount of $100k USD.
Bitcoin P2P Lending Platforms
P2P lending are platforms that bring together lenders and borrowers of Bitcoin. They are safe ways to invest your Bitcoin and also to get a p2p Bitcoin loan. Some of the crypto p2p lendig platforms include LendaBit, BTCPOP, and BitBond.
Lend at Hodll P2P Crypto Loans
Lend at Hodl Hodl at Hodl Hodl is a p2p bitcoin-backed lending product by Hodl Hodl, a Bitcoin exchange. Users can borrow USDC, PAX, USDT, DAI and other stablecoins using Bitcoin or Liquid Bitcoin as collateral.
Lend at Hodl Hodl’s origination fee is between 0.5 to 1.5% of the loan amount based on the contract period. Hodl Hodl fees are paid by the borrower. Lend at Hodl Hodl takes a 2% commission. Commission will automatically be charged after the Contract comes into force. Origination fees according to the loan duration are: 1 day: 0.5%, 1 week – 5 months: 1% and 6 months – 12 months: 1.5%
LendaBit Cryptocurrency P2P Lending
LendaBit is a cloud mining platform that is now offering cryptocurrency p2p loans. LendaBit connects lenders and borrowers who place Loan Requests and Loan Offers and indicate the loan terms they prefer such as interest rate, repayment period, loan amount, etc. All crypto p2p loans are secured by crypto collateral. There is a 1% system fee a borrower has to pay from the loan amount. The platform allows you to use your crypto assets such as BTC, ETH and USDT (OMNI) as collateral. Minimum loan term is 1 day while the maximum loan term is 3 years.
BitBond discontinued their Bitcoin lending product in July 2019 and are not offering any loans anymore. The company now offers B2B Digital Asset Tech solutions.
Bitbond is a Berlin-based p2p Bitcoin lending platform. Its services are available worldwide. Businesses can borrow loans while lenders earn interests. They have a reputation system to determine who is eligible for posted loan offers. To qualify for a loan, you need to have the minimum investment requirements. Their investments have high returns which makes them best suited for small businesses. However, they have high terms rate while loans depend on national currencies which can make lenders lose money in case of an increase in the price of Bitcoin. Bitbond loans can be funded in bitcoins and fiat currency such as USD, EUR or Kenyan shillings (through BitBond partnership with BitPesa).
Bitbond is popular with small online businesses. Therefore, Bitbond reviews loan applications for small businesses by reviewing connected business accounts on platforms such as eBay, Amazon, and Paypal.
BTCPOP is a UK based p2p platform that provides peer-to-peer Bitcoin loans. The platform considers reputation and not credit score or financial history while giving a Bitcoin loan. You can get a loan from lenders and you can also give a loan to borrowers. It advances a minimum loan of 0.01 to 500 Bitcoin loans. It offers Bitcoin personal loans, Bitcoin business loans, instant crypto loans, IPOs and bonds with collateral.
To qualify for the crypto loan, you need to set up your account with a user name, email, and password. For the next step, you have to verify your identity with address, SMS verification, and links to your social media accounts. Finally, you need to build your reputation with BTCPOP.
How to Build Reputation With BTCPOP
- The reputation of a person for Bitcoin transactions is not easy, cheap or quick. There are some steps you can take to ensuring that you build a good reputation. However, these steps are not a guarantee of getting a loan. The market determines if you qualify for a loan.
- Have collateral. To build a good impression, take collateral loans and then make sure that you fully pay the loan. Some of the securities you can use for the loan are shares or altcoins. BTCPOP offers altcoins for exchange which you can use for exchange. Alternatively, you can use shares listed on a platform. These shares have a market price and can be used as security for a loan.
- In case you have other platforms where you have a strong reputation, you can port it by sharing the information with BTCPOP. You can send them links to loan listings, PDFs or screenshots. Ensure that the proof is tangible and evident.
- If you know a person that uses BTCPOP and has a strong reputation, you can use him to help you build your reputation. Being active in the community can also play a key role in building your reputation. If your peers see you positively, then your loan is likely to be approved quickly. Lenders pay attention to how lenders see a borrower. To participate in the community, create a good profile that has a bio, profile picture and add some links. Then make sure that you chat and interact in the forums.
Struggling to get your business started? BTCPOP allow users to start an IPO (initial public offering). We believe that everyone deserves a chance. If you think you have a fantastic idea for a business but don’t have the funds to get it started, creating an IPO with BTCPOP offers other users the opportunity to invest in your idea, increasing the chances of making your dream company become a reality.
When to Take Your First Bitcoin Loan with BTCPOP
There are two methods you can use to borrow a loan. The first is instant and instant collateral loans. This is the best loan to start with when acquiring Bitcoin loan. They are easy to work with hence helping you to build your reputation. With a good reputation, you will be eligible for competitive rates on your next loans. The loan is usually small, but you can always increase the limit by adding collateral. Make sure to pay the loan early and on time to build a reputation. However, the loan is expensive, making the process costly.
Alternatively, you can borrow custom loans. Fill in all the necessary information online before submitting the request.
Paying Bitcoin Loan with BTCPOP
It is important to ensure that you pay the loan before the due dates. Late payment will ruin your reputation. To access your loan, go to PAYMENTS OUT tab in your account. Be careful of the following:
- Ensure that you have money three days before the due date. Sometimes Bitcoin blockchain can have delays and therefore, it is important to have the funds in advance.
- In case of an emergency and you suspect you may not pay the loan when it is due, inform the lender in advance. This can create a good image in a bad situation about you. Then make sure to pay partial payments than paying nothing.
Why P2P Bitcoin Loans Over Banks?
If you are wondering whether to borrow peer-to-peer Bitcoin loans or bank loans; the following are the advantages of p2p Bitcoin loans over bank loans.
- They have better rates since lenders are not charged any fees while borrowers pay between 1% to 5% fees.
- They have faster loan approvals, unlike banks that are bureaucratic thereby requires a lot of time to approve a loan.
- Reduced chances of scams since Bitcoin lenders approve loan submissions manually and individually. They use manual checks, thereby reducing the chances of a fraud.
- It is a financial advantage to customers. Lenders get a better return on investment since rates range between 3 and 7 percent per month.
Documents Necessary for Bitcoin Loan
You might be required to provide the following documents when applying for a Bitcoin loan.
- Government Identity card.
- Credit card verification. If you have a credit card, it is important to verify that you have been paying credit on time.
- Verification of social media accounts. Lenders use social media accounts to verify that you are a real person with friends and have some activities. Ensure that all your accounts are active.
- Online bank accounts such PayPal and TransferWise Borderless can also be used to prove that you pay your debts on time.
- Utility bills such as apartment lease and electricity bills.
- Income verification is a must since no lender will give you money without an income.
- Email verification.