How to Get a Stablecoin Loan
In most cases, you only need your collateral, a good lending platform, and some personal information.
If you are on this page, you likely know a thing or two about crypto loans. You know they can be beneficial when you need to fund emergencies without compromising your crypto holdings. Unlike traditional financial institutions, you also know that most crypto lending platforms do not request credit checks.
So how do you get one? That is what this article will address. As the topic implies, we will focus more on stablecoin loans—crypto loans disbursed in stablecoins. We will discuss some of the best stablecoin loan platforms, show you how to get a stablecoin loan from them, and highlight some factors to consider when looking for a stablecoin loan.
Where To Get A Stablecoin Loan
In this section, we introduce you to some of the best stablecoin loan platforms:
Nexo is a reputable crypto loan platform that promises to help you unlock the power of your crypto. It accepts collateral in 39 cryptocurrencies and allows you to take stablecoin loan proceeds in USDT or USDC. The minimum collateral amount is $50, while the maximum is $2M.
Your assets are safe on Nexo and are insured for up to $775 Million.
Nexo is available in over 200 regions.
You can get loans with as low as 0% APR on Nexo, with the highest interest rate being 13.9% APR.
It offers diverse loan repayment options.
You can spend your loan proceeds with the Nexo credit card.
How to Get a Loan on Nexo
To get a loan from Nexo, you must first create an account on their platform by hitting the 'Get Started' button at the top of the homepage. You will need to enter and verify your email address and password.
Once you're done with that, the next step is to complete KYC verification. You'll provide some personal information and upload some documents to verify your identity. You will have full access to your Nexo account when your verification is complete.
The last step is to deposit digital assets to your Nexo account, which immediately opens up a credit line depending on the amount and type of crypto asset you deposit. You can then use the credit line to borrow your stablecoin loan and withdraw the proceeds instantly.
CoinLoan offers more stablecoin loan options than Nexo. You can take your loan proceeds in five stablecoins: DAI, USDC, USDT, BUSD, and TUSD. There are 15 collateral options, with a loan term that stretches up to three years.
It is a secure platform with an insurance package worth $250 million.
Its calculator makes it easy to see your potential loan expenses.
The interest rates are cheap, with the highest being 11.95% APR.
You can use both fiat and crypto as collateral.
You can avoid paying interest for a year if you repay your loan on time.
How to get a loan on CoinLoan
After signing up on the platform, you'll need to verify yourself. The process is usually fast and can be completed within minutes. Then you'll deposit collateral which can be fiat currency, crypto, or other stablecoins. Lastly, you'll choose your loan parameters, including your loan term, LTV ratio, loan amount, etc.
There is a calculator on-site that makes things easier. Also, you'll get a 50% fee discount if you pay back your loan with CLT, the platform's native token.
YouHodler is a crypto lending platform with diverse collateral options. It also offers some of the highest LTV ratios in the crypto loan world. However, USDT is the only stablecoin loan option for now. But you can also get a loan in four fiat currencies and withdraw it directly to your bank account.
There are about 58 collateral options and still counting.
You can borrow loans with up to a 90% LTV ratio.
Interest payments are made once when your loan term expires.
Its Turbocharge option allows you to use your borrowed coins to borrow more loans.
You can use NFTs as collateral for borrowing loans.
How to Get a Loan on YouHodler
As with the first two platforms, YouHodler requires that you perform KYC verification after signing up. Then, you deposit into your YouHodler account using any supported currency. You can also deposit fiat.
You then use your deposit as collateral to take your stablecoin loan. YouHodler also allows you to manage your loan conditions even when your loan is still active.
Ledn is a crypto loan platform with little collateral and loan options. You can only use BTC as collateral, and you can only receive your loan in USD or USDC. The loan runs typically for 12 months, while interest is paid together with the loan amount after the loan term passes.
It is risk-conservative, with an APR of 9.9% and a 50% LTV ratio.
International loans are available on the platform.
There are no prepayment fees.
It is a licensed and regulated platform.
It offers a service, B2X, that allows you to double your Bitcoin holdings.
How to Get a Loan on Ledn?
To apply for a loan on Ledn, you'll need to perform KYC verification and provide your wallet details. Afterward, you'll deposit your collateral and get your loan within 24 hours if all goes well.
Other Platforms to Get Stablecoin Loans
You can also get loans from decentralized finance giants like Aave and Compound. Check our reviews page for detailed analyses of these platforms and more.
Factors to Consider Before Getting A Stablecoin Loan
The Loan Options
Before taking a stablecoin loan, find out the crypto collateral and repayment options. What are the highest and lowest loan-to-value ratios, and how high is the annual interest rate of the platform? Also, find out all the fees you will have to pay, including origination fees, late payment fees, etc.
The Platform's security and counterparty risk
Not all cryptocurrency lending platforms are secure. Therefore, you must verify your crypto assets' safety before giving them away as collateral. Also, check their customer care system by chatting with them before signing up. That will give you a hint as to how they'll treat you if things go awry.
Supported digital assets and countries
Even if it is the best crypto lending platform, you can't use it if it doesn't have the digital asset you want or doesn't support your country.
Getting a stablecoin loan allows you to keep your crypto and still utilize it. In most cases, you only need your collateral, a good lending platform, and some personal information to secure the loan. However, ensure you verify the platform's security before submitting your collateral. That way, you can enjoy your stablecoin loan proceeds with a settled mind.