Users are coming up with innovative ways to use their cryptocurrency assets as they become more broadly understood and accessible. A crypto loan is one of these methods, in which borrowers use their crypto assets as collateral for a secured loan.
Lenme is the perfect gate for Lenders & Borrowers in P2P Lending!
Lenme enables lenders to make loans without incurring the substantial costs associated with running a business, paying employees, screening and qualifying clients, and managing loans. We can do this more effectively and at a lower cost thanks to technology. Even better, lower expenses result in lower interest rates and more funding available to borrowers.
How do Crypto-Backed Loans work?
A crypto-backed loan from Lenme is a secured loan in which the lender holds your crypto assets as collateral in exchange for cash. You will receive your cryptocurrency back at the conclusion of the loan term, which can last anywhere from a few days or several months to more than that, provided you comply with your repayment commitments. But if you don’t pay, the lender may take your possessions back to make up for its losses.
The amount of the loan you are accepted for from Lenme is often based on the value of the cryptocurrency you are using as collateral. Depending on the lender, you may be able to borrow anywhere from 30% to 100% of the value of your cryptocurrency. During the term of the loan, if the value of your holdings decreases, you can be required to provide additional collateral.
How can a Crypto-Backed Loan from Lenme really be beneficial?
- You can borrow fiat money, like US dollars, using cryptocurrency loans as collateral. You can buy additional cryptocurrency with these earnings, such as doing vehicle maintenance or implement some house improvements, or spend them however you like.
- You still stand to gain if the value of the crypto assets increases, even if they are put up as collateral, because the borrower still owns them.
Pros of Crypto-Backed Loans
- Get quick approval & Funding
- Low credit score is not an issue
- Low interest rates
- Your funds & loan can be used for any purpose with 0 restrictions
Losing money on Crypto? Don’t sell it! Borrow against it..
To take out a crypto-backed loan, you must connect your crypto wallet to the Lenme App. Lenme supports more than 50 crypto currencies such as Bitcoin, Ethereum and much more. The steps are really simple! All you have to do is the following steps to get a personal loan up to $10,000:
- Create an account on the Lenme App
- Verify your identity by adding your SSN, ID Card and connecting your bank account. Steps won’t take more than 10 minutes.
- Connect your Crypto wallet.
- Choose your desired loan amount based on your collateral and repayment term.
- Submit loan requests and wait for lenders to provide their best terms.
Crypto lenders typically have quick turnaround times; you may hear back immediately and receive your funds within 24 hours.
There you have it – Borrowing with Lenme is as simple as that! Give it a try – download the app here.