CoinLoan Review

This post may contain affiliate links

CoinLoan is the first P2P lending platform for crypto-assets backed loans. CoinLoan is currently one of a kind P2P lending platform. Other companies such as Celsius Network has tried to replace the banks with cryptocurrencies. While CoinLoan is very different from the other typical P2P lending platforms they are surely trying to use different technologies to make a better borderless financial world. A true FinTech company.

Coinloan logo

Lenders (investors) can lend out cryptocurrencies: BTC, ETH, LTC, XMR, TUSD, USDC, PAX, USDT, EURS, and DAI. Furthermore, investors can lend out FIAT currencies: USD, EUR, RUB, and GBP. The borrowers are allowed to provide collateral of the cryptocurrency types BTC, ETH, BCH, LTC, XMR and CLT.

CoinLoan making loans available through cryptocurrencies
CoinLoan making loans available through cryptocurrencies

CoinLoan Overview

CoinLoan is a P2P lending platform that allows lending in both FIAT-currencies and cryptocurrencies. All loans are backed by cryptocurrencies therefore securing the investors against a borrower not repaying the loan. CoinLoan offers the investors to set a “loan offer”, which more or less functions like an auto-invest function. The investors can choose to offer the interest rate they want.

  • Investment types: Anyone
  • Investment term: 7 days to 3 years
  • Interest rate: Expect 8%-15%
  • Auto-invest: No
  • Buyback guarantee: No (But secured with collateral)
  • Fees and costs: Investing is completely free. Borrowing as a percentage fee based on the loan term.
  • Minimum investment: €100
  • Currencies: EUR, USD, GBP, RUB, BTC, BCH, ETH, LTC, XMR, ONT, CLT
  • Secondary market: No
  • Sign-up link: CoinLoan

Cryptocurrency And P2P Lending Mixed

It is known that both cryptocurrencies and P2P lending is categorized as the riskier investment types. Then, is it smart to combine them?

We all know crypto is a very volatile asset. CoinLoan has made the investments available with a Loan-To-Value (LTV) between 5% to 70%. For the investor, there is no risk, as the collateral will be sold to secure the investment. However, the borrower could end up being liquidated if the value of his/her collateral falls too much.

How To Get Started

The first step is to sign up at CoinLoan. When you have signed up and verified your information you can start making deposits. You can deposit funds with SEPA, SWIFT, AdvCash and Alfa-Bank. Furthermore, if you prefer using your debit or credit card instead of bank transfers you can do so.

Who Can Invest On CoinLoan?

According to CoinLoan themselves, the platform can be used by anyone in the world. However, you have to be at least 18 years old to use the platform.

Worldwide lending and borrowing at CoinLoan
Worldwide lending and borrowing at CoinLoan

Due to the legislation CoinLoan has to comply with the KYC (Know Your Customer) and AML (Anti Money Laundering) policies. As an investor, this just means you have to prove proof of your identity.

How To Invest On CoinLoan

You can choose to lend in different cryptos (including stable coins) and FIAT currency. You set the premise for the loans.

CoinLoan settings for loan offers
CoinLoan settings for loan offers

When you want to lend your funds, you create what is called a “Loan offer”. In the loan offer, you determine how much to lend, at what interest rates and why you want it repaid. You even get to decide what type of collateral to accept.

It is obvious that offering a lower interest rate will make you “win” more loans from the borrowers. However, this is based on what the market offers and currently, the interest rate for loan offers is between 7% to 11%. However, I got inside information from CoinLoan that EUR loans are going like hot bread. So if you want to get some good returns, lending in EUR can be a good idea!

CoinLoan Interest Account

CoanLoan offers an interest account which means you can earn interest on stable coins such as USDT, USDC, and PAX. These are all coins that are worth $1.

CoinLoan has made it super simple to invest using the interest account. You only have to deposit the amount you want to lend, and the rest of the process will be automatic.

CoinLoan Interest Account
CoinLoan Interest Account

This is a great alternative to your traditional bank account since you have no risk of currency fluctuation.

If you have some stable coins sitting in a wallet, just deposit your coins to CoinLoan and let the interest compound.

Is My Money Safe On CoinLoan?

All loans provided on CoinLoan’s platform are backed by crypto collateral (Bitcoin, Ethereum and others). During the entire loan term, the collateral is stored on a separate wallet (the borrower, therefore, has no access to the collateral). If the borrower fails to repay the loan, CoinLoan will sell the collateral to repay the investors in full with accrued interest.

Furthermore, CoinLoan is regulated under Estonian laws. Furthermore, they have European Financial Licenses.

CoinLoan Auto-invest

There is no auto-invest option on CoinLoan. However, when you create your loan offer the way loans are executed functions just like auto-invest.

This is NOT an auto-invest feature. However, when you have created your “loan offer” it is posted on the CoinLoan marketplace and the borrowers can then browse the loans and accept your terms. When the borrower accepts your loan, your loan offer is executed and your loan offer is then completed and made to a loan. Hence, the functionality is like an auto-invest feature, but it only applies for a single loan at a time.

CoinLoan Pros And Cons

Pros:

  • All loans are secured with collateral
  • Possibility to invest in crypto and FIAT currencies
  • CoinLoan has secured high probability of repayments
  • Exchange between crypto and FIAT currencies

Cons

  • Low volume of borrowers and investors
  • No BuyBack guarantee

CoinLoan Verdict

CoinLoan is a very innovative platform by combining both P2P lending and cryptocurrencies. The concept is quite smart and makes a lot of sense. What can scare me a bit is if the crypto market goes to an all-time high like 2017, with a crash like the start of 2018. If the cryptos lose 90% of their value, a lot of borrowers will be liquidated harming them financially (the investors are safe due to the collateral).

Conclusion of Crypto P2P Lending Platform

CoinLoan is a very special and one of a kind P2P lending platform. The current platform lets investors lend in both fiat currencies and cryptocurrencies. Furthermore, they are not governing what you should accept in return, hence you can demand the interest rates you think is fair.

The platform combining two of the new industries since the financial collapse of 2008: cryptocurrencies and P2P lending. It is a good incentive and surely fits the FinTech resolution.

If you would lend you crypto or fiat money you can use my affiliate link to CoinLoan to sign up.

CoinLoan Review

CoinLoan is a P2P lending platform that allows lending in both FIAT-currencies and cryptocurrencies. All loans are backed by cryptocurrencies therefore securing the investors against a borrower not repaying the loan. CoinLoan offers the investors to set a "loan offer", which more or less functions like an auto-invest function. The investors can choose to offer the interest rate they want.

Editor's Rating:
3.5
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ThePoorInvestor
I am ThePoorInvestor and I am on a financial independence journey. I am investing in P2P-lending to create a high cash-flow return. I disclose my income, expenses, investments and everything financially relevant. It is all for you to see, I have nothing to hide. I have invested in a total of four different investment types throughout my 2 years of investing.
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