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Latest Crypto Loan Rates

Like traditional loans, crypto loans also have varying interest rates. We help you understand how these rates work and the different rates in the market today.

Getting a crypto loan is easier than getting a traditional one. You do not undergo extensive credit checks, and you do not have to be physically present to get crypto loans. The most important thing you need is your crypto collateral. Once you have that, the rest is easy.

However, there is something else to look out for when considering crypto-backed loans - the interest rates. It's important because it determines how much you'll have to repay and whether or not getting a crypto loan will be worth your while.

Therefore, this article will introduce you to the interest rates charged by various crypto loan platforms. We will also dive deep into crypto borrowing and examine how it works. In the end, we will share some tips with you on how you can obtain the best rates when getting a crypto loan.

What Is Crypto Borrowing?

Crypto borrowing is the term used to describe any loan process that involves cryptocurrencies. It could be one of three things which are:

  • Using your crypto assets as collateral to get fiat currency loans

  • Using your crypto assets as collateral to get loans in other cryptocurrencies

  • Using your fiat assets as collateral to get crypto loans

Regardless of what form it takes, crypto borrowing is desirable to crypto enthusiasts because it allows them to utilize their digital assets without selling them. That's because if you use your crypto asset as collateral to get a loan, the asset is still yours, and you still stand a chance to benefit from any price uptrend it might have.

How Does Crypto Borrowing Work?

A crypto loan arrangement usually involves two or three parties - the lender, the borrower, and the intermediary (in most cases).

The lender is the owner of the financial asset the borrower wants. He has agreed to lend his asset in exchange for the collateral the borrower puts down. He is rewarded by the borrower with interest payments, which may come periodically or at once, depending on the initial arrangements.

The borrower needs the financial asset of the lender and is prepared to put down collateral to secure it. In most cases, the collateral is worth more than the loan amount. Unlike in traditional loans, a crypto loan borrower is not credit-checked before getting the loan. The over-collateralization of the loan is enough incentive for him to return the money when due.

The last party needed is the intermediary. This is usually a crypto loan platform that acts as a mediator between the lender and the borrower. The intermediary is not always required but is recommended because it adds a certain level of trust to the arrangement.


We offer a deeper dive if you would like to know more about how crypto loans work.

How Are The Interest Rates Calculated?

Because the crypto loan industry is still in its infancy, interest rates may differ significantly from platform to platform. Still, some universal factors affect how much interest borrowers pay. They are:

The Crypto Asset Involved

Some cryptocurrencies are more volatile than others. That is why most crypto loan platforms offer varying interest rates for varying assets. For example, the lowest interest rate on CoinLoan for borrowing BTC is 4.5%, while it is 4.95% for USDT and other stablecoins.

On the other hand, if you use BTC as collateral to get a fiat or stablecoin loan (still on CoinLoan), the lowest interest rate you'll get is 4.95%, while it reduces to 4.5% if you use stablecoins as collateral.

The Lending Platform

The difference in the mode and scope of operation of crypto loan platforms also translates to different interest rates from platform to platform. This is majorly the case with CeFi lending platforms that may also have to deal with taxation and various governmental regulations.

Something else that makes the platform instrumental in determining crypto loan rates is the use of platform tokens. For example, you can pay interest rates up to 13.9% APR when borrowing on Nexo. However, that figure can be slashed down to 0% if you hold up to 10% of your portfolio in NEXO tokens. That's impressive!

The Loan-To-Value Ratio

The loan-to-value ratio is the ratio of the loan amount you get to the collateral you put down. Generally, a lower LTV ratio translates to a lower interest rate and vice-versa. For example, using BTC to secure a USDT loan on CoinLoan carries a 4.95% APR if you borrow with an LTV ratio of 20%. On the other hand, if you take out the same loan but with an LTV ratio of 70%, you will be charged an interest rate of 11.95% APR.

Is Crypto Borrowing Safe?

As is common in most aspects of the crypto world, borrowing crypto loans comes with risks. Those risks include platform risks, market risks, lack of proper regulatory procedures, risks of the loan counterparty, etc.

However, that doesn't mean crypto loans are not worth it. After all, nothing good comes easy, right? You only need to find a way to manage those risks and still benefit from the sweetness of crypto borrowing. Here are some things you can do to mitigate the risks of borrowing crypto:

  • Use a trustworthy platform, preferably one that is regulatory-compliant.

  • As much as possible, deal only with cryptocurrencies that have solid footing, like large-cap coins.

  • Don't go all in with your collateral. Keep some with you just in case things go awry.

  • Keep your wallet's private keys safe. If you are using an exchange, opt for multi-factor authentication protocols.


There are more points to keep in mind regarding crypto loan safety. We cover them all in this article.

How To Use A Crypto Loan

You can't take out a loan just for the sake of it; you need to use it for something specific. So you might start wondering how you can use your crypto loan. The simple truth is that you can use it for almost everything a traditional loan is used for. Consider a few options:

You can use a crypto loan to invest in non-crypto assets

You can take out a loan to invest in physical assets like real estate or to pay your mortgage. You might even split your portfolio among a host of financial assets. You could invest in stocks, indices, and even tangible commodities like Gold.

Your crypto loan proceeds can be used to grow your business

Apart from the obvious advantage this brings, taking out your crypto loan for business purposes is a non-taxable event in many regions. Therefore, you can spend as much as you like on your business without paying a tax dime.

You can borrow crypto to invest in other cryptocurrencies

Even though this seems counter-productive, it can prove to be very useful. For example, let's say you have your crypto portfolio only in BTC and hope to maintain it that way. However, there is an opportunity for a quick profit in ETH, which you wish to exploit.

What do you do? Do you sell your BTC to buy ETH? Well, you don't have to. Instead, you could use your BTC as collateral to get an ETH loan and profit from it. When you are done with Ethereum, you simply return it and get back your BTC. You didn't have to sell your BTC and still profited from ETH. Sweet, right?


What other things can you use your crypto loan for? This article answers that question.

Where Can You Get Crypto Loans

When contemplating where to get a crypto loan, there are several factors you consider. These include how secure the platform is, how much collateral it requests, what type of crypto loan options it offers, and whether or not it has the crypto assets you want to borrow. You should do the research yourself to know what you're getting into.

To help your decision-making process, we will highlight some key factors about some of the best crypto loan platforms.


Browsing through the Nexo website alone is enough to convince you of its authenticity. It is one of the top loan platforms in the centralized sector. It offers loans with as low as 0% APR if you meet certain conditions. That's not all; Nexo also offers a credit card that allows you to spend your crypto assets without selling them. Lastly, it has an insurance fund worth $775 million, meaning you don't have to worry about losing your collateral indiscriminately.

Check here for our in-depth review of the Nexo platform.


CoinLoan is another destination for crypto loans with low-interest rates. Its highest rate is 11.95% when you borrow fiat with cryptocurrencies. You can get an additional 25% discount in interest rates if you hold more than 10% of your portfolio in CLT, the platform's native token. The platform also has a $250 million insurance arrangement with BitGo.

If you want to know more about CoinLoan, check here for our review.


YouHodler is where you will get one of the most diverse collateral options in the crypto loan world. At press time, 51 different crypto options were used as collateral. YouHodler also allows you to take out a loan with up to a 90% LTV ratio, meaning that you can get more loan proceeds out of your collateral. It also offers innovative crypto loan products like MultiHODL and Turbocharge.

Dive into this article for a comprehensive review of YouHodler.


Check this article for a complete list of crypto loan platforms that we recommend.

What About Flash Loans

Flash loans are DeFi loans that do not require collateral. They allow you to borrow millions of dollars worth of crypto with the only condition that you pay it back in the same transaction. These types of loans are available through DeFi lending platforms like Aave and dYdX.

One of the notable things about flash loans in the DeFi space is that they usually come with very low fees. For example, Uniswap charges a 0.3% fee on flash loans, while Aave charges a 0.09% fee. dYdX charges no fees! Therefore, flash loans can be profitable if you know how to work them well.


Do you feel like getting a flash loan? Check out our comprehensive guide first before making a decision.

Why Should You Get A Flash Loan?

  • You don't need collateral of any kind.

  • The fees and rates charged by flash loans are usually low.

  • It allows you to engage in arbitrage trading


We highlight more advantages of flash loans in this article.

Why Shouldn't You Get A Flash Loan?

  • There are not many crypto platforms that offer flash loans.

  • A flash loan can be complicated to implement.

  • There have been a lot of flash loan scams.

  • It is still a new concept.


Check this article to know more about the disadvantages of flash loans.

What To Know About Crypto Mortgages

A mortgage is a loan you take to build, buy, or maintain a house. Crypto mortgages follow the same principles, except that cryptocurrencies are used as collateral instead of fiat. These crypto-backed mortgages have become popular recently and are great options for those who want to get a house on loan but have bad credit scores.

Like other crypto loan options, crypto mortgages have the added benefit of low-interest rates compared to traditional mortgages. For example, Milo, a crypto mortgage platform, offers 30-year crypto mortgages for as low as 3.95% APR. This is lower than the average rate of around 5% in the traditional mortgage industry.


There are a few more things to know regarding crypto mortgages. Check them out in this article.

How To Get The Best Crypto Loan Rates

In the introductory paragraphs, we said we would share some tips on getting crypto loans with the best rates. Let's get into that now.

  1. Sign up on a crypto loan platform that offers low-interest loans. We have mentioned a few in this article. However, don't focus only on the interest rates; research how secure the loan platform is too. That way, you won't fall victim to scams and fraudsters.

  2. Choose lower LTV ratios. While a higher LTV ratio will mean you get more value for your collateral, you will also pay more interest.

  3. As much as possible, borrow well-grounded cryptocurrencies with large market capitalizations.

  4. Get your hands on the native token of the platform. That way, you stand a chance of getting juicy discounts on interest rates. On CoinLoan, for example, holding 10% of your portfolio in CLT tokens can grant you a 25% discount on loan interest rates.


In this article, we have discussed noteworthy facts about crypto borrowing rates. They are generally lower than traditional loan rates and come with less stress. So, if you want to borrow a crypto loan, check out our recommended platforms and get yourself a loan that puts your mind at ease.