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CoinLoan is a crypto-to-fiat lending platform between lenders and borrowers

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CoinLoan is a crypto-to-fiat lending platform that bridges the gap between lenders and borrowers excluding the bank as an intermediary from this interaction.

CoinLoan seeks to achieve a win-win relationship between the two sides. The platform allows people from all over the world to provide or borrow a loan from another person and benefit if compared to a similar bank operation. CoinLoan’s role is simply to ensure cooperation between both parties and its safety.

Borrowers don’t have to choose between holding their crypto and getting access to fiat money. They just use their cryptoassets as a collateral for getting a loan and get them back after repayment. No credit checks and another borrower scrutiny for approval.

Lenders invest with minimal risk — the cryptocollateral ensures full repayment of the provided loans including interest without delays.

Speaking about risks associated with the fluctuating exchange rate of virtual currencies, the CoinLoan system calculates the ratio of borrowed funds and collateral (LTV). With any change in the exchange rate, the ratio of provided funds to the amount of collateral also changes. When the ratio begins to decline to 60%, the system sends a warning to the borrower about changes in the cryptocurrency rate. If the borrower does not respond, the system will automatically sell part of the collateral at the current rate to secure the loan deal.

A beneficial feature that sets CoinLoan apart from other crypto-collateral services is that it is based on the P2P economy.

CoinLoan gives anyone an opportunity to create a lending or borrowing application, specifying optimal conditions including loan currency, term and amount, interest rate and loan-to-value ratio. If there is a suitable counteroffer, the applications will be matched and the borrower will receive fiat money almost instantly. The platform will not receive any interest, just a fixed fee for giving or getting a loan.

Aneta Larkins

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