TALLINN from Estonia, July 30, 2020 / PRNewswire / – The Established Cryptocurrency Company Loan of parts took action and cut its interest rates in half for some assets even more than that. By reassessing and iterating the process of calculating interest rates, CoinLoan achieves interest rates as low as 4.5%. Instead of charging a 10% fixed rate on cryptocurrency loans, CoinLoan switched to based on the loan-to-value ratio. This creates the possibility of setting a very low interest rate based on the loan to value ratio you choose.

The term loan-to-value ratio is a financial instrument common to traditional institutions and loan companies. It is an assessment of the risk that the borrower takes when taking out a loan. Usually, this is done when a household applies for a mortgage or any major purchase. The rule of thumb: the higher the LTV ratio, the higher the risk of the loan. Thus, the rate of interest is higher than otherwise. CoinLoan is one of the first players in the cryptocurrency industry to introduce this financial instrument. The reason is to embrace uncertain times for borrowers and allow them to create protective measures for themselves.

Within the CoinLoan platform, the Instant Loan tab has been changed to allow borrowers to choose their preferred LTV ratio. While there used to be a fixed fee for any loan, there are now a ton of additional options. Users choose how much to borrow, see their collateral amount, and then choose an LTV ratio of 20%, 35%, 50%, or 70%. On your right, you will see a summary with all the details of your loan, and therefore, the interest rate you may have to pay. Interest rates are different per asset; for cryptocurrencies such as Bitcoin, Ethereum, and Litecoin, the interest rate for a 20% LTV is only 4.5%.

When you take out a one-year loan with a 20% LTV you only pay 4.95% interest, which is one of the lowest in the industry. Other companies may only offer these attractive interest rates for small loans within a specific limit, but with CoinLoan there is no limit to how much you want to borrow. This drastic change in practice is very much in line with CoinLoan’s philosophy of changing lives by making lending as easy as possible. You can always surpass the industry standard, you just need to find the right company.

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SOURCE CoinLoan