SALT adds LITECOIN[LTC] as collateral for the Loans

One of the crypto lending platforms from US SALT has added Litecoin [LTC] as the collateral for the loans. SALT or  Secured Automated Lending Technology is a platform offering a blockchain-based loan. In a Twitter update, the firm announced the acceptance of  LTC as collateral for the loans. The firm would also be adding some new features like removing the maximum cap on loan amounts and updating loan solutions for emerging markets.

The platform is offering loans in USD at an interest rate of 5.99% for loans up to $75,000. Loans up to $25 million feature an interest rate of 11.99%. The firm also has a token that was first traded in July 2017. Its user base is also 70,000 worldwide.

Check out their announcement on Twitter.

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Three reasons why you should avail a Crypto-backed Loan

Loans are the hard reality of our lives. Car loan, home loan, personal loan and the list could go on and on. While all the loans offered by traditional banks are linked to some specific project, crypto-backed loans differ from that. With crypto lending, one could put in his/her digital currency as collateral and ask for a loan in alternative cryptocurrency or fiat for the project they wish for. So once you have secured your cryptos in the digital wallet with a crypto lending platform, and the loan is released you are free to use it as per your wish for buying a car, or home improvement or even putting stuff in business.

Bitcoin loans or blockchain based loans are ideal for individuals who need instant cash in exchange for their valuable cryptocurrency. Listing down few of the other reasons entities could consider to try out crypto loans.

Reasons To Avail Crypto Loans

Effective Crypto Asset Management

Would you like to just let all your hard earned cryptos go away when you are in need of cash? Well, experts recommend that would be not an effective crypto asset management strategy, but you still need extra money. Crypto-backed loans are the answer, a win-win situation where you can get extra money with a promise that you can have all your cryptos back to your wallet.

Instant release of loan amount

Most of the crypto lending platforms release the loan amount [in fiat] directly to borrowers bank account within 4~24 hrs. The whole loan request to loan release process is automated and digitized, making it quick, simple and effective for borrowers who are in dire need of liquidity.

No implications on your credit score

Do you know in India people having less CIBIL score less than 750 gets rejected by banks on their loan request? This is not valid for crypto-backed loans, and also availing a crypto loan does not affect your credit score. So you are free to take a crypto loan and leave the worries about credit score in the dump.

No Paperwork, no documentation, no processing fees, and no credit scores are needed for a crypto-backed loan. Just a handful of cryptos is all you need.

Nuo is a decentralised and transparent crypto banking platform. It acts as a blockchain powered financial control centre to store, spend, borrow and grow your crypto-currencies. Install the android app or try out our crypto backed loans platform.

If you liked our post, please follow us on twitter [@getnuo] to get latest updates and insights.

Crypto-backed Loans in India

In our last posts, we spoke about How Crypto Backed loans are different from peer-to-peer loans, what are the different types of crypto loans, advantages of crypto-backed loans, Risks associated with crypto lending, crypto lending platforms in US, Crypto Lending Platform in UK and Crypto Lending Platform in Europe. Continuing our discussion further on Everything you need to know about Crypto-backed loans, today we would talk about different crypto lending platforms in India

While India is still figuring out should they treat cryptos as commodities or ban crypto trading, a startup in India Nuo Bank with their product getLend is offering lending services. Let’s take a closer look –

Crypto Lending Platforms in India

Nuo Bank

Nuo a start-up from India aims to offer a decentralized and transparent debt platform. It is a Blockchain based Bank that allows you to buy, hold, lend, loan cryptos on the Ethereum network. They have launched an Android app, that offers the flexibility of buying cryptos and storing it as well. Nuo Lend another platform helps in connecting borrowers and lenders. Nuo lend comes in three flavors-

Peer to Peer Loans

It is a lender-borrower network where a borrower could submit a loan request and deposit his ERC20 tokens onto the safe wallet with NuoBank.Using the decentralized lending platform the lender could earn an interest rate by funding a loan and the borrower in need of money could use his crypto tokens to get extra cash.

Bonds Marketplace

A financial marketplace to buy, sell and discover non-fungible tokenized assets traded as ERC71 bonds through auctions.

Margin Funding

A peer to peer network of margin traders with shared liquidity and up to 10x leverage. Before digging deep into the business model, let’s figure out what is crypto margin trading?

What is Crypto Margin Funding?

In simple terms, its Crypto Margin trading is where a lender offers a loan to a trader to invest. While the lender earns interest on the debt offered, the trader could earn a profit[with an increased investment]. Let’s take an example – if you are staking 5$ with a 5:1 leverage would mean you are placing a bet of 25$ in the open market. Now, as a trader, you would need to pay the borrowed money and also the fees or the interest attached to it. Hence, traders expectations and speculation is that the gain would be sufficient to cover the interest and make him earn a profit.

How Nuolend Margin Funding Works?

The NuoLend platform would connect Margin traders and lenders so as to facilitate margin trading. Each Margin trader needs to put his ERC20 tokens as collateral to get funded, and if the value is dipped, the collateral would be liquidated to pay the loan amount.

Nuo is a decentralised and transparent crypto banking platform. It acts as a blockchain powered financial control centre to store, spend, borrow and grow your crypto-currencies. Install the android app or try out our crypto backed loans platform.

If you liked our post, please follow us on twitter [@getnuo] to get latest updates and insights.


3 Rules of Crypto backed Loans Every Investor Should Know

Investment of any sort is risky and is mostly played by rules by all genres. Even a child when he sets up a trade of toys exchange quickly analyze benefits he could reap and risks he could face, then how could the world of crypto backed loans be spared? Today’s post is all about the rules, precautions to be taken while signing up for crypto backed loan.

Three Rules of Crypto backed loans


Rule #1 – Diversify your Portfolio

Distributing your investment to multiple borrowers based on loan amount, geography or duration is the first rule to be followed. So, for example, if you have planned to invest 10 BTC amount, then break it into chunks, i.e., funding 2BTC for five borrowers that is a mixed bag of long term or short term and belongs to developing and developed nation.

By choosing among the developed/developing nation, you are reducing your risk of default, and while long-term loans help in reducing the workload of follow-ups, short-term offer the benefit of reinvesting and improving liquidity. So choose accordingly.

Rule #2 – Know the Risks

While lending offers benefits of high returns, it is still in a nascent phase with very less awareness. So if the borrower fails to repay the amount, would it lead you to bankruptcy? Or analyze the amount of how much you could lose say the borrower is new and does not have much knowledge on the latest technology, so make sure all of your eggs are not in the same basket. Crypto backed loans are high on returns but also come with high risk.

Rule #3 – Analyse, Learn and Realign your investing techniques

Well, there is no rulebook of crypto backed loans technique that one could follow and eliminate risk, but make sure once every fortnight or even monthly analyze your crypto portfolio in terms of returns and realign or redistribute to make it profitable.

All it takes is time and perseverance to get good returns on crypto backed loans; it’s like sowing the seeds and watering it daily until you see the flowers and finally fruits. However, beware of harsh sunlight, thunderstorm, weeds, and pests that could harm your investment.

Happy investing!

If you liked our post, please follow us on Twitter [@getnuo] to get the latest updates and insights.

Could Crypto Loans reduce credit risk and margin call risks?

Crypto Loans or Blockchain-backed loans is the trending concept these days that assist crypto enthusiast in earning profits. While lenders enjoy the benefit of earning interest on their digital currency, borrowers use the funds to short sell or shorting. The interest rate earned by lenders vary from 5 – 50% each year.

As per a study by the Unchained Capital, the potential lending market for crypto assets is estimated at around $20-30 billion. Even though cryptocurrencies are highly volatile, they also offer high liquidity. Bearing in mind the possible risks of volatility, liquidity similar to fiat money makes cryptocurrency an ideal asset for loans in fiat.

But how could they be used to reduce credit risk? Let’s explore –

Crypto loans reducing Credit Risks?

Crypto-backed loans offer a unique opportunity to the borrowers to receive funds for any investment they want. Unlike traditional banking where interest rate varies with home loans, car loan or personal loan, crypto loans work with a simple equation of obtaining a loan in fiat of up to 50% of the market value of its crypto asset. Since the deposit is always more prominent than the loan amount, the creditor never can face the defaulter’s risk.

However, in cases when volatility has exceeded the threshold, the lender has the right to make a margin call, i.e., to sell off the crypto asset at market price to pay off the loan amount.

However, if the deposit amount has been affected due to a drop in cryptocurrency the borrower is sent a warning message narrating the deposit amount to be insufficient. In such cases, the crypto exchanges or crypto lending platform ask borrowers to deposit sufficient funds, pay off a part of debt [partially or fully] or sell part of the crypto asset to repay the remaining debt.

Crypto Loans reducing Margin Call Risks

The borrower can also reduce the risks of a margin call by smartly choosing the ratio of deposit and loan size. With a smaller loan amount value, less impact to the price fluctuations with lower interest rates and longer loan terms as it reduces loan risks to the lender, thereby saving borrower from the margin call risk.

While for banks defaulters risk is huge, in the crypto world it could be controlled and managed effectively. Crypto loans also offer the advantage of lower processing fees and fast processing. For more details on Advantages of crypto loans, check our post – Advantages of crypto-backed loans.

Crypto lending is one of the easier ways of earning a passive income if chosen wisely. It is also considered a common alternative to investors who are inclined towards crypto trading but could not find enough time to practice it daily.

Nuo is a decentralised and transparent crypto banking platform. It acts as a blockchain powered financial control centre to store, spend, borrow and grow your crypto-currencies. Install the android app or try out our crypto backed loans platform.

If you liked our post, please follow us on twitter [@getnuo] to get latest updates and insights.

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