Bitcoin Loans – Indian Industry in dilemma

While Indians are still searching for the best interest rates, a new offering from the crypto world has knocked India – Loans against crypto assets or crypto loans.

News.Bitcoin.com surveyed players in the industry, and their responses can be categorized as skeptical. Abhi Upadhyay, from the mobile lending space, says – “Traditional financial institutions like banks are never going to come close to accept cryptocurrency as security.”

Manav Jeet, Founder, and CEO of Rubique, a prominent fintech player in the digital space – We are the best-regulated markets, and even in terms of awareness, only a tiny portion of Indian population is using cryptocurrency. It will take a lot of time for us to get to the stage where we can imagine this form being used in secured loans.”

While in terms of Fintech adoption India has exhibited the second highest fintech adoption rate (59% while the global average is 33%) as per the EY Fintech adoption index, but Bitcoin loans as Saurabh Shankar, head of marketing at Paysense says – conceptually the idea is not bad, but the practical side here revolves around regulations and actual ease.

Read more at News.bitcoin.com


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.

Gold as Collateral in Crypto Loans Market

Gold has been a precious commodity for most of the investors, while experts argue there have been reports that Gold protects user’s financial portfolio from volatility as there is an inverse relationship between gold and equities. Gold is also widely used as collateral in the Debt market, and with the push of innovation, now borrowers in the crypto lending community could use gold as collateral. Let’s explore a bit more on this –

The Crypto Lending Using Gold as Collateral

Conventional Lending has been a cumbersome and tedious job, as individual raise a request to the Bank or NBFC ’s, Banks explore the user’s credit score, verify personal and financial details and then the loan is sanctioned. Crypto Lending, on the other hand, does not need to verify your economic status, based on the collateral value the loan amount is fixed and released at a predefined interest rate. While earlier tokens were used as collaterals, quite recently Gold has been used as collateral by the crypto-backed loans platform.

How Gold as Collateral works in Crypto Loans?

The borrower could submit a loan request and deposit the gold in the wallet provided by the Blockchain lending platform. Here there are two types of service providers, one where the platform connects the borrowers/lenders from across the world and second where the platform itself act as a lender. So in the first case, once the loan request is made, and if a matching application from a lender exists, the loan could be issued promptly, or otherwise, the request sits on the dashboard unless an apt funder is found. In the second case, the loan amount either in the form of cryptos or fiat is issued and transferred directly to the bank account or a crypto wallet.

Once the repayment of the principal amount is made, the borrower can get his Gold collateral back. Mostly there are no prepayment charges applied by the lending platforms and have fixed interest rates.

The Lender and borrower are under an agreement made by smart contracts, to prevent either party from relapsing on the agreed terms.

Why Gold as Collateral in Crypto Lending?

By using Gold as collateral, the blockchain lending platform is raising the possibility of including other tangible assets like precious metals, real-estate, etc. Also, Gold as collateral has been existing since olden times, and individuals still include Gold among their financial portfolio as a diversifier or as a hedge in case inflation is peaking so then why not take its benefits in crypto markets as well?

What are the Risks Associated with Gold loans in Crypto Market?

Gold loan is classified as a secured loan because it’s an asset-backed loan where mostly lenders do not have to worry about defaulters and Gold is a universally accepted commodity. Hence lenders are making a safe bet. However, the borrower might have to worry about the crypto prices since it’s a volatile market with not much regulation.

Firms Offering Gold Loans in Cryptosphere

ETHLend has listed the gold-backed cryptocurrency, the Digix Gold token (DGX), on its platform; enabling borrowers to use gold as collateral effectively for blockchain lending.

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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.

 

Five Things You Need To Know About Crypto Loans

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 Loans platform in Europe. Continuing our discussion further on Everything you need to know about Crypto-backed loans, today we would talk about five things you need to know about crypto loans.

Crypto Loans – Five Things You Should Know

Crypto Lending Platform are operational 24*7

Yes thanks to the nature of the services, the lending platform is operational 24*7. Most of the platform connects the lenders and borrowers from across the globe, making them operational 24*7. Unlike loans offered by banks or NBFC’s in the countries, the crypto lending market is a digitized platform where individuals could register from any part of the world.

 

Get FIAT against a crypto collateral

One of the beauty of crypto loan is the new business model that offers Fiat currency loan against crypto collateral. If users have cryptos in their wallets which are lying idle and he is in need of cash, a crypto loan with fiat model is the best bet. The lending platform offers secured wallets that could be used to deposit your crypto collaterals, and the loan amount could be issued within 2~24 hrs directly to your bank account, depending upon the platform policies.

 

Crypto Loans are only for RICH or millionaires

While Home loans, Car loans may be for the affluent community, crypto loan market offers microloans of even 50USD depending upon the platform you choose. Yes holding a financial portfolio of cryptos like bitcoin, Ethereum or Altcoins might be a game for millionaires, but the crypto lending market is open to all investors.

Crypto Loans are not regularised

While cryptocurrency itself is banned or restricted in many countries, many regions do allow the exchange to operate. However, the license and registration of a lending platform can be obtained in the US by the U.S. Securities and Exchange Commission (SEC) or in Canada the Ontario Securities Commission in Ontario. Even France and UK authorities, i.e., the Autorité des marchés financiers and the Financial Services Authority in the UK assist in providing a license to the P2P lending platforms.

Reg crypto to cash loans, there are a number of legal formalities and prove yourself worthy of maintaining a legal payment institution regarding financial stability, security or legality and then get a license to work as a lending platform.

 

Assets are unsecured, and returns are uncertain

All investments are subject to market risk, and most of the investment that fails [in crypto or non-crypto domain] is due to ignorance of the investor. Financial education is of utmost importance while making any investment, so in the crypto loan, the investor should be well aware of the volatility of the market, the offerings and the conditions that could lead to being a defaulter.

For the lender to mitigate risks associated with the cryptocurrency volatility, the lending platforms fix the collateral ratio from 10~70%. So the level of risk varies with each participant.


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 Loans Platform in Europe

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 and Crypto Lending Platform in UK. Continuing our discussion further on Everything you need to know about Crypto-backed loans, today we would talk about different crypto lending platforms in Europe.

The two firms from Europe – Ethlend and Nexo are making much noise in crypto communities. While each one differs in the way their business model work, they have been working hard to capture the customer base and innovate crypto-backed loan space. Let’s take a closer look –

Crypto Lending Platforms in Europe

Ethlend

Ethlend facilitates decentralized lending on the Ethereum network. Ethlend lending works by lending Ether units and not by lending fiat currency. Also, Ethlend loans are backed by collateral as ERC-20 tokens and not Ether or bitcoin. They accept all kinds ok token like Vibe Coins or OmiseGO or Golem to name a few.

For a borrower on the Ethlend platform, he needs to deposit his ERC-20 token and lenders need to deposit their ether. Then Ethlend contracts make the switch and loan have started. The borrower now needs to pay the interest amount in Ether, failed to do so provide the lender a right to claim the deposited collateral.

Nexo

Nexo using blockchain technology provides loans directly to the borrowers. NEXO itself provides the funding, so you may not might additional lenders on their platform.

Nexo offers loans outside Europe in USD and EUR with no credit scores check. The borrower could also repay the loan amount using USD, EUR, Bitcoin, Ethereum or Nexo Tokens[the first SEC-approved security token]. One of the advantage borrowers receives while using Nexo token is a discounted interest rate. Nexo token holders also get a dividend as a percentage of the firm’s profits. While dividends, discounts may be overwhelming for the borrowers being SEC approved they are risk averse

Crypto Lending App Lndr by Blockmason, Adds PayPal Integration

Blockmason a firm from the US that launched an application Lndr an expense sharing app is integrated with Paypal. The A distributed mobile app built on Blockmason’s Credit Protocol, a foundation for recording debt and credit obligations on the blockchain is keen on expanding its reach would allow its users to settle their loans on the platform using Paypal. Users can use a total of 20 fiat currencies and ETH on the platform. The CMO of the firm says that they are exploring the options of cross-currency transactions, so one person could send ETH and receive USD.

However it’s essential to know Paypal is not having a partnership with the firm Lndr, they are using open API for integration.

Read more at bitcoinexchangeguide

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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.

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