CoinLoan Review

We deeply regret to inform you that CoinLoan OÜ, a virtual currency service provider, has recently undergone the legal process of bankruptcy as declared by the Estonian court. As a result, the operations of CoinLoan have been officially closed.

Should You Be Using CoinLoan?

CoinLoan is a crypto lending platform launched in 2016 and based in Estonia. Our CoinLoan review will take a look at the different services they offer and determine if it is a safe site for investing cryptocurrency.

What is CoinLoan?

CoinLoan is a peer to peer crypto lending platform that offers services to both borrowers and investors. Borrowers are able to obtain crypto backed loans quickly and with favorable terms and no credit checks. Loans are available in several fiat and cryptocurrencies so whether you want a Bitcoin loan or to borrow US dollars CoinLoan has you covered. Investors can store their cryptocurrency assets in interest earning accounts with rates that are competitive with others in the industry and higher than you would earn on traditional savings accounts. Their services are offered worldwide and CoinLoan is licensed under EU law. In addition to interest earning accounts and loans, the platform has a crypto exchange where users can buy, sell and trade various cryptocurrencies. One other feature of the site is the CoinLoan Token (CLT). By staking CLT investors can get higher interest rates on their deposits.

Is CoinLoan Safe?

CoinLoan holds 3 Estonian Financial Licenses that allow them to provide cryptocurrency wallet services, to operate as a financial institution, and to exchange cryptocurrency against fiat currencies all over the world. They are also registered as an MSB with FinCEN in the US. CoinLoan stores client’s assets offline with BitGo and these assets are secured by $100 million insurance from Lloyd’s of London. Their private keys are held by Bitgo. Transactions on the platform are kept secure using SSL protocol and other security measures.

CoinLoan Interest Account

CoinLoan Interest earning accounts may be funded with the cryptocurrencies Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Monero, Wrapped BTC, XRP, Chainlink, USD Coin, TrueUSD, Binance USD, PAX, Tether, Dai, and PAX Gold. The Euro and Pound Sterling may also be deposited to interest earning accounts. The interest rate on deposits will depend on the type of currency. Current CoinLoan interest rates are as follows:

• 5% APY: Monero
• 2% APY: Bitcoin, Ethereum, Bitcoin Cash, Litecoin, XRP, Chainlink, Wrapped BTC, PAX Gold
• 3% APY: USD Coin, TrueUSD, Binance USD, PAX, Tether, Dai, Euro, Pound Sterling

The interest rates given include a CLT staking reward of 2%. Interest is paid in the same currency that was deposited. If you deposited in Bitcoin then interest will be paid in BTC. There are no fees on CoinLoan’s interest earning account and the minimum deposit is €100. The process for opening an account is fairly simple:

• Click “Sign Up” in the top right corner
• Enter your email and a password and click “Sign Up”, a verification code will be immediately emailed to you
• Enter the verification code
• Verify your identity: Information required will be name, date of birth, place of birth, phone number and residential address. A copy of a passport or other official ID will also be needed. This is to comply with KYC/AML requirements
• Deposit Funds: Deposit using any of the supported cryptocurrencies. Fiat currency can be deposited using SEPA, SWIFT, Visa and MasterCard. There is a fee on deposits made using Visa and MasterCard of €2 + 4.2%

There are no fees for withdrawing from your CoinLoan account.

CoinLoan Loan

The main requirement for taking out a loan at CoinLoan is to have the collateral to back the loan. CoinLoan allows users to borrow up to 70% of the value of their collateral. The cryptocurrencies accepted as collateral are BTC, BCH, ETH, LTC, XMR, TUSD, USDC, PAX, USDT, BUSD, PAXG, and WBTC.  Borrowers may also use EUR as collateral. There are three basic types of loans at CoinLoan: crypto to fiat, crypto to crypto and fiat to crypto. The cryptocurrencies that can be borrowed are BTC, ETH, LTC, XMR, TUSD, USDC, PAX, USDT, EURS, DAI, BUSD, and WBTC. Fiat currencies that can be borrowed are USD, EUR, GBP, and RUB.

Loan terms at CoinLoan range from 7 days up to 3 years. The interest rates on loans will vary depending on the size of the loan, the term length of the loan, the cryptocurrency used as collateral, and the loan to value (LTV) ratio. LTV is calculated by dividing the amount of the loan by the value of the collateral. At a lower LTV percentage, annual interest rates start at around 4.95% while the annual interest rate at the maximum LTV can be as high as 11.95%. The loan must be repaid using the same currency that was borrowed. The minimum amount that can be borrowed at CoinLoan is $100. No maximum deposit amount is set. There is no penalty for paying off loans early. There are no credit checks for loan applicants but they will go through the same sign up and verification process as depositors.

CoinLoan Main Features

Aside from interest earning accounts and crypto backed loans there are a couple of other special features available at CoinLoan:

• Crypto Trading: Investors can buy, sell and trade cryptocurrencies at CoinLoan. The currencies supported are Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Monero, XRP, Chainlink, TrueUSD, USDC, PAX, Tether, EURS, DAI, BUSD, WBTC, Euros, and Rubles.
• CoinLoan Token (CLT): By staking CLT investors can gain up to 2% higher interest rates on their deposits. Borrowers can get a 50% discount on platform borrowing fees if they pay using CLT.

Also check out the Coinloan referral bonus to get extra benefits.

Conclusion

CoinLoan provides loans quickly and the process is quite simple to complete. They also offer both short and long term loans. Investors can get very attractive interest rates on their deposits and there are no fees for withdrawing funds. CoinLoan is regulated under European law which is also a bonus. Another plus is the number of different cryptocurrencies they work with. Whether you want to deposit your cryptocurrency for a passive income or get a loan fast CoinLoan is a good choice to provide the service you need. For another site that offers similar services read our YouHodler review and see what they have to offer.