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Crypto Lending allows Canadians who hold crypto assets to leverage their holdings as collateral for cash loans. Crypto Lending is the first lending platform to give Canadians access to liquidity without having to sell their cryptocurrencies. Crypto Lending is a platform built by Canadians for Canadians.
A loan's LTV (loan-to-value) ratio determines the amount of crypto collateral you need to post in order to take out a loan. In general, collateralized loans require customers to give the lender an asset, in our case bitcoin (BTC). We hold your asset until your loan is paid off, then it's returned to you.
Eg: Let's say you want to borrow $10,000 at 40% LTV. You would have to post $25,000 worth of bitcoin.
Due to market volatility, we performed extensive risk modeling with our investors and lenders prior to launching our platform and determined that this was a sufficiently conservative rate. Our goal is to have a limited number of expected margin calls and provide our clients with breathing room. This LTV ratio protects you and us.
We're an alternative lender built to help Canadians unlock the value of their digital assets. We provide personal loans backed by an individuals crypto assets, as a result, we don't perform a credit check, nor qualify borrowers based on their credit history.
No, we are an online lending platform.
Yes, we do not perform a credit check on applicants. Posting collateral is all an eligible borrower must do in order to obtain a loan.
Personal loans are often unsecured. With a home equity line of credit, you borrow against the equity in your home. With Crypto Lending, you borrow against the value of your cryptocurrency. Your crypto asset is used as collateral.
Crypto Lending offers personal loans from $500 up to $35,000. Your borrowing capacity is based on the value of your collateral and not your credit rating.
The basic requirements are:
- Be a Canadian resident with a valid government issued ID with a Canadian bank account
- Be age of majority in your province or territory
- Own cryptocurrencies
Once you meet these minimum eligibility requirements, several other factors may be considered when processing your application.
Not currently, however we do have plans to add additional loan products in the future.
No, we only offer secure collateral loans backed by cryptocurrencies. Presently, we do not offer any other loan product.
Our first product is a CAD dollar denominated loan that is collateralized by bitcoin.
At launch we will only accept bitcoin as collateral. We do have plans to support additional cryptocurrencies in the future.
Yes. The cryptocurrency that you use as collateral still belongs to you. We simply hold your collateral in our secure cold storage vault during the life of the loan. When you fullfil your loan agreement, your collateral is returned to you.
No, we are not a Crypto Exchange. If you are considering buying, selling or trading cryptocurrencies you will need to register with an Exchange.
If the value of your cryptocurrency rises, you don't have to do anything. Once your outstanding loan is repaid in full, you will receive your collateral back and you retain its market value.
If the value of your cryptocurrency falls on the other hand and breaches the agreed upon loan-to-value (LTV) threshold, a "margin call" will be triggered. You will be given an opportunity to either; add additional collateral, or make an additional principal payment, bringing your LTV below set threshold.
Throughout the life of the loan, our platform continuously monitors the value of your collateral. A "Margin Call" occurs when the collateral value falls below the set LTV ratio based on the outstanding principal of the loan. We will keep you informed if your LTV starts to near the margin call so you can take action preemptively.
You will send your cryptocurrency collateral to a unique wallet address created by our platform. We will provide you with further instructions during the loan application process.
Crypto Lending uses 100% cold storage ensuring that your crypto assets remain secure. Your private keys will never be stored on our website.
A cold storage wallet is a unique bitcoin wallet that is not connected to the Internet, or also known as a hot wallet. The private key of a cold storage wallet is secure and therefor not susceptible to hackers. It's the most secure form of cryptocurrency storage.
Due to the irreversible nature of blockchain technology and cryptocurrencies, any collateral sent to the wrong wallet address cannot be reversed. Please double check all addresses before transferring your collateral.
Online Loan Questions
To get started, we will ask you to provide basic personal information, information about your income and your bank account details. We ask you for a variety of information in order to best determine if a Crypto Lending personal loan is right for you.
We will require government issued photo ID to verify your identitiy. Further instructions will be clearly outlined in our online application form.
We require government issued photo ID to comply with Anti Money Laundering (AML) and Know Your Customer (KYC) verification. We are required to verify the identity of our applicants who apply for a financial product through our platform.
We look at several factors to determine interest rate. How much collateral does the borrower have, the term length, borrower's income, and lastly the interest rate offered by our lender network. Interest rates are subject to change and influenced by market conditions.
Yes, origination fees will be clearly outlined when you are applying for a loan.
You will typically receive a lending decision within 24 hours.
No, we do not perform a credit check on applicants. We do perform full Anti Money Laundering (AML) and Know Your Customer (KYC) verification.
No, we do not perform a credit check when you apply for a loan through Crypto Lending. We do not report loans to any third parties.
At this time we do not allow co-signers or joint applications on our platform.
Your loan proceeds will be deposited directly to your bank account. This process usually takes 1-2 business days, in some circumstances you may even receive it the same business day.
Each loan application will vary from case to case, especially in the beginning of our loan availability. We want to ensure a safe and trustworthy online experience for each one of our members.
No, we are a Canadian company serving Canadians.
No, presently we only offer loans in Canadian (CAD) funds.
Yes, you can use your loan proceeds for whatever purpose you wish.
During your application process, you will be setup for automatic payments. We will automatically process your loan payment from your bank account.
Yes. You can pay your outstanding balance in full at any time with no prepayment penalties.
Our platform will automatically liquidate a portion of your collateral to make up for the missed payment and associated fees.
Timely payment of your loan helps us in our ability to deliver great products and services. In the event that you have insufficient funds when we attempt a monthly payment withdrawal, a $40 NSF fee will be incurred.