Crypto-backed Loans, how are they different from peer to peer loans

Crypto-backed loans, bitcoin loans or crypto lending are the terms that offer loans against the crypto you hold. So if you are a holder of Bitcoin/Ether/Altcoins and they are simply lying in your wallet, you could take a loan by putting your tokens as collateral.

What are Crypto-Backed Loans?

In a centralized system where banks or financial institutions or even local pawn shop provide you with a loan against collateral like land, gold, house, etc., with an agreed interest rate to be paid by the bearer. Here banks are the trusted parties that verify the collateral and identity of a person availing loan so that it does not lead to a loss to the bank/FI’s/individuals.

In a decentralized world, the same case is replicated where the borrower would be eligible for a loan amount against the collateral. However, here the issuer and borrower are directly dealing with each other, and there is no third party like ‘Bank.’  This is known as crypto-backed loans.

How does crypto lending work?

So say you have ‘x’ amount of bitcoin in your wallet, via smart contract you initiate the request on one of the crypto-lending platform. There would be other fields like Collateral Token, Loan Amount, Loan Tenure, Premium, etc. Sample this –

Loans 1

Once you have filled in the form, the submitted the request it would be available on the lending platform to get funded. The amount would be credited to your wallet which you could use as per your wish.



How are crypto-backed loans different from Peer-to-peer loans?



Coincrunch, Finder, GetNuo

Introducing Long Term ETH Loans

The bulls are roaring again. A regulated ETF might be on its way. Sensible ICOs are hitting the market and with more regulation and awareness the community is weeding out scams. As you hop on to this bull cycle, there is one important tool that you have been missing which can help grow your assets by providing additional liquidity. Introducing Long Term ETH loans.

Using Nuo Lend, users and institutional investors including crypto funds can raise debt in ETH against other ERC20 tokens without selling them and get additional liquidity for 6 months or even an year in a completely decentralised way.  This would give you enough time to make other investments, wait for investment tokens to list on an exchange and book your profits.

1. To get started, you would need to create a loan request by choosing a collateral token. This collateral will be with the smart contract till you repay your ETH loan. You can then choose a premium (2.5% for every 30 days is recommended) and the duration of the loan (90, 180 or 360 days recommended for long term). You can choose to repay back the loan in 1 instalment or upto 10 instalments.

2. Once you have fill this loan request form, you would need to pay gas (Ethereum Network fees) for creating a smart contract for this request. Once a smart contract is created successfully you would need to authorise and transfer the collateral token to the smart contract. We have over 50 tokens supported for transferring the collateral.

3. Once the loan request is created successfully it would be visible to all the lenders on the platform and will get funded soon. Since the entire Nuo Lend product is completely decentralised and runs on smart contracts you can keep a track of your collateral in the smart contract and ensure that you don’t default at any time. 3 days before the end of the loan tenure, you would get a notification for repayment and you would have to transfer the loan amount along with the interest rate you had promised failing which you would lose the collateral in the smart contract.

Oh and currently the gas price is quite low and your loan request would cost around $3-5 worth gas (network fees) and to compensate for that we are giving you $10 as a crypto cash-back in your account which will make you profitable from Day 1.

Now never miss an opportunity to invest in an ICO because of lack of liquidity. Happy Investing.

  • Borrower Tutorial: Asking for a Loan on Nuo Lend

  • Lender Tutorial: Earning Interest On Crypto by Lending

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.

Nuo Lend now supports BNB backed ETH loans

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We are delighted to announce that Nuo Lend now supports Binance Coin (BNB) as a collateral token. You can now get instant liquidity in ETH against your BNB tokens without selling them. This will enable users to keep the upside of BNB tokens which has outperformed the market consistently over the last few months. The Nuo Lending platform is completely decentalized and runs on smart contracts on the ethereum mainnet. Most loans get funded in few hours and the ideal loan amount to borrow is over $100. We are giving $10 crypto-back for first 50 loans on the platform.

To get started, please go to and click on apply for loan. Select BNB token as the collateral and create a repayment structure best suited for you. Once you create the smart contract, transfer your BNB tokens and voila.. you application is live 🙂

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