Crypto.com is a top crypto exchange created in 2016. Since the launch of the ecosystem, it has offered many benefits to both investors and regular crypto users. On top of the list of features, you can enjoy on the crypto.com platform is the ease to get instant loans with a flexible payment deadline.
Crypto.com Instant loans differ from others with the ease to get a loan with fewer requirements, no credit check required, and a flexible repayment plan. To get the loan on the Crypto.com platform, you need to deposit crypto as collateral. Also, you will have a repayment plan spread across 12 months and borrowers can pay back as they seem fit.
All you need to know about Crypto.com loan
Crypto.com loans have a high Loan-to-Value (LTV) ratio, making them particularly appealing to individuals who have the appropriate collateral. Loan-to-value (LTV) is the ratio of the loan amount to the USD value of the collateral. When you take out a loan, this is continually computed and updated until the day you repay the whole amount plus interest. The higher the LTV, the more risk the lender is assuming, which means higher interest rates and costs.
How to qualify for the Crypto.com loan?
To be eligible for the loan program, Crypto.com users must undergo advanced level verification. Additionally, due to local rules, users from some prohibited countries are unable to utilize the service.
What Cryptocurrency is supported to get the loan?
To get a Crypto.com loan, you need to deposit crypto as collateral. Supported crypto includes USDC, USDT, BTC, ETH, XRP, and LINK, while CRO, LTC, BTC, ETH, VET, LINK, DOT, XRP, USDT, and USDC can be used as collateral.
What are the minimum and maximum amounts you can borrow?
The least amount that may be borrowed is $100 at the moment the loan is taken out. Several variables affect the maximum borrowing limit, one of which is the account holder. For retail customers, the maximum amount is $500,000. institutions may borrow up to $1 million, whereas institutions with Lending Pro are allowed to borrow up to $2 million. A customer’s total outstanding debt in US dollars may be as much as three loans, with each loan having a separate dollar value.
Things you need to know about repayment of your borrowed loan
The loan duration is 12 months, and the borrower may pay back any amount at any moment during that time. The term ends a day after the date on which the loan originated the previous year. Any payback will include both the principal and the interest, and repayment must be paid in the same asset borrowed.
When taking out a loan, the initial loan-to-value ratio determines the interest rate. They are calculated at the end of each day depending on the unpaid principal amount borrowed. The interest rate increases as the LTV increases, ranging from 2% per year for a 25% LTV to 8% per year for a 50% LTV.
How to get a Crypto.com loan on your crypto.com app?
To get a crypto.com loan on your app:
- Click on the Crypto.com logo
- Under the Finance section, select Credit
- Select the cryptocurrency you wish to deposit as collateral
- Based on the amount you deposit, you will see an equivalent of how much credit you can receive the amount of the allowed stable coin (TUSD, PAX, USDC, and USDT).
- Confirm the transaction and you will receive the loan sum immediately
How to monitor your loan from your Crypto.com app
Based on your current Loan-to-Value (LTV) ratio, Collateral health reveals if your collateral is in danger of being liquidated.
A Margin Call will be issued if your Collateral Health falls below the Poor/Critical level, requiring you to deposit extra collateral or make a repayment. When your loan-to-value ratio (LTV) exceeds 85%, all of your collateral will be liquidated.
To monitor the health of your loan:
- Log into your Crypto.com account
- Select loans
- Choose loan history
This page contains details of your loan which include borrowed amounts, interest, repayment, liquidation history, and margin calls.
Why can’t you get a loan on your Crypto.com app?
There are several reasons why you might not be able to get a loan on your crypto.com app. Some of the common reasons include:
- You are not eligible due to verification or location
- You already have a loan in one asset. You cannot borrow from multiple assets
- You have more than three outstanding loans already
- You have exceeded the cumulative maximum amount you can borrow
In conclusion, the crypto.com loan provides suitable access to funds for your crypto investment while also giving you the freedom to pay at will within 12 months. This is a feature most eligible investors will look to exploit and get the best from their crypto investments. With Crypto.com loans you can get crypto loans easily and also pay them back as you wish.