LendaBit Review

Peer-to-peer (P2P) crypto lending is growing in popularity and a number of platforms such as BTCPop have been developed to facilitate these types of loans. P2P platforms allow lenders to set their own terms for the funds they loan, while borrowers can obtain loans using their crypto assets as collateral. LendaBit is a popular P2P crypto lending platform. Our LendaBit review covers all the information you need to determine if they are the right crypto lending platform for you.

What is LendaBit?

LendaBit was launched in 2018 and is based in Hong Kong. Investors can generate income from their cryptocurrency assets by lending them through the platform, setting their own terms and interest rates. Borrowers are able to secure loans with no credit checks by using their own crypto assets as collateral. The loan process has been simplified by LendaBit, making the procedure as easy as possible for both borrowers and lenders.

Services

Some cryptocurrency platforms offer a full range of services like those you will see provided by the Whalefin crypto platform. However, LendaBit focuses on crypto loans with two basic services available; crypto lending and crypto borrowing.

Crypto Lending: Investors can earn cryptocurrency income by lending either their Bitcoin (BTC) or Tether (USDT) assets. Once the digital asset has been deposited the investor can offer loans. There are three lending options that an investor can choose from.

1. Formulate an individual loan offer. The lender indicates the loan amount, currency of the loan, interest rate and loan term. To become a loan a qualified borrower must accept the offer and provide the required crypto collateral.
2. Place an offer into the loan pool. The loan pool is a collection of standardized loan offers. The lender then waits until an offer is accepted by a borrower
3. Accept a loan request. Qualified borrowers can make requests for loans, specifying the terms they are willing to accept. If the lender agrees to the terms, they can accept the loan

Crypto Borrowing: Borrowers can obtain a loan once they have deposited the necessary collateral to LendaBit. The cryptocurrencies accepted as collateral are Bitcoin (BTC), Ethereum (ETH) and Tether (USDT). There are three borrowing options to choose from.

1. The borrower selects a loan from the pool of standard loans provided on the site with terms they find acceptable
2. Browse loan offers made by lenders. When the borrower finds a loan with terms that suit them, they accept the loan
3. Place an individual loan request. Borrowers specify the crypto they want the loan in (BTC or USDT), the digital coin they are using as collateral, the loan amount, loan term and interest rate they desire. They then wait for lenders to review and accept their request.

The minimum lending period for a loan is 1 day and the maximum period is 3 years. Minimum and maximum allowed loan amounts will depend on the verification level of the borrower. There are three verification levels.

• Level 1: Email confirmation
• Level 2: Email confirmation plus submission of identification document such as a passport, National ID or driver’s license and a “selfie”. The selfie should be a photo of the borrower holding a sheet of paper with “LendaBit.com” and the current date written on it
• Level 3: Email confirmation, identification document, selfie and proof of address such as a bank statement, utility bill or tenancy agreement with the borrower’s name and address.

Minimum and maximum loan amounts for the different verification levels are shown in the following table.

LendaBit prefers that borrowers maintain a Loan to Value (LTV) ratio of 50%. An LTV of 80% is considered critical and is the maximum allowed indicator for borrower’s collateral. At an LTV of 85% a margin call is automatically triggered and the borrower will be required to top up their collateral. Should the LTV reach 95% the borrower’s collateral is transferred to the lenders account and the loan is considered closed. Borrowers cannot obtain crypto loans without collateral at LendaBit.

An additional borrowing feature at LendaBit is Credit Line. Users can deposit crypto and receive a credit line instantly in USD or Tether. Borrowers can use and reuse the credit line based on their needs and are only charged interest based on what they use. There is a grace period of 45 days from when the credit line is extended where 0% interest is charged. Duration of the credit line is for 2 years.

Rates

The interest rates for crypto loans at LendaBit can range anywhere from 0.1% to 100% depending on what the lender offers and what the borrower is willing to accept. Typically interest rates will range from 5% to 15%.  The interest rate on credit line is 22% once the grace period of 45 days is over. The average interest rates are somewhat higher than those found on Oasis App.

Wallet

LendaBit is partnered with BitGo, a cryptocurrency wallet and vault service provider who provides wallet services for the platform. Crypto assets are stored and insured by BitGo.

Cryptocurrencies

There are only three supported cryptocurrencies on LendaBit. Many platforms offer 100 or more supported cryptocurrencies as you can see in our Vauld review. The digital coins that loans at LendaBit are made in are:

• Tether (USDT)
• Bitcoin (BTC)

Cryptocurrencies accepted as collateral for loans are:

• Bitcoin (BTC)
• Ethereum (ETH)
• Tether (USDT)

LendaBit does state on their site that they plan to add Litecoin (LTC) to their list of supported cryptocurrencies in the future.

While LendaBit doesn’t support any fiat currencies itself, users can withdraw in US dollars if they have an open account on Capitalist.net, an online payment system. Those without a Capitalist.net account can withdraw funds in BTC or USDT to their wallet and convert them at a cryptocurrency exchange such as Kraken. It is up to the user to select the best crypto exchange for their needs.

Fees

LendaBit charges some fees for the services they provide.

• System Fee:
  • Borrowers: 1% of loan amount
  • Lenders: 0.5% of loan amount

In addition, there are fees for withdrawing funds from the site.

Lenders may also have to pay a collateral transfer fee. This fee is charged for the transfer of collateral and is 0.5% of the transferred amount.

Mobile & App

LendaBit conducts all its operations through its website platform. A mobile app is not available nor is one required. The site can be accessed by PC or mobile devices and is very user-friendly and easy to navigate.

Is LendaBit Legit?

LendaBit has been facilitating peer-to-peer crypto loans since 2018. They are partnered with cryptocurrency wallet and vault service provider BitGo which provides their wallet services and guarantees 100% insurance coverage for supported cryptocurrencies. They are a legitimate crypto lending platform.

Contact & Support

LendaBit customer support can be reached using the platforms online contact form that can be accessed by clicking the “Customer Care” link located at the bottom of the page. They can also be contacted by email at customercare@lendabit.com or by phone at +852 8198 0026. The platform also provides a fairly extensive FAQ that answers many questions.

Conclusion

Although LendaBit doesn’t support many cryptocurrencies, they have made the P2P crypto lending process much easier. The LTV of loans is monitored closely to protect lenders and loans can be obtained quickly and easily. They are a platform well worth checking out for both potential borrowers and lenders.

If crypto lending doesn’t appeal to you and you are looking for other ways to earn with your digital assets, take a look at our MyCointainer review to learn about alternative ways generate an income with your cryptocurrency assets.