ICCL offers USD loans collateralized by your crypto assets. What does that mean? Well, we give you USD and you give us Bitcoin (BTC), Ether (ETH) , or Litecoin (LTC) as security for repayment. It’s really that simple. Clients can apply for a loan in less than 2 minutes and be funded in USD or GUSD directly into their bank accounts or wallets in as few 90 minutes. Cool, right?
Why Take Out a Cryptocurrency Backed Loan?
Many crypto owners have a long-term view of their investments. Although they plan to hold their crypto assets, sometimes circumstances force investors to sell their crypto for USD. Rather than selling, investors can use their cryptocurrencies as collateral towards a cryptocurrency backed loan. This allows them to maintain ownership of their funds while gaining access to the USD they need to fund their projects.
Click here to learn more about collateralized loans using your crypto assets.
What Can I Use My Crypto Loan For?
Crypto backed loans are one of the most cost-effective and efficient ways to manage your cryptocurrencies when you need access to USD.ICCL clients use their loans towards a number of different purposes, including:
- Buying a home – traditional lenders will not let you pay for a home with crypto
- Diversifying investments – lower the risk of your portfolio by diversifying
- Paying off travel expenses – use your crypto to go on vacation
- Paying off high-cost debt – refinancing debt from credit cards or student loans
- Funding a business – access credit for your business using crypto
Click here for more information on things you can do with a ICCL loan.
Applying for aICCL Loan
Clients apply for loans on our website by inputting their requested loan amount, the kind of crypto they want to stake, and KYC/AML information for identity verification purposes.ICCL does not pull hard or soft checks on client’s credit, so your credit score will not be affected.
Click here for more information on whether ICCL affects your credit score.
The ICCL team will then review your application and get back to you within one business day. After approval, you will receive a loan offer. If your application is received within business hours, you can expect a decision within 2 hours. The loan offer will include important information on how your offer was calculated.
Reviewing Your Loan Offer
One of the first things you will look at is your interest rate.ICCL’s interest rates depend on the loan amount, credit history, and location. You can find the most up to date rates on our loan calculator page. The next thing you will notice is that our offers include an origination fee, which averages around 1-2%. This is also dependent on the applicant’s requested loan amount, credit history, and location. Beyond those, you will see your offer APR, which is a simple way to show the total price over the course of a year. Click here for more information on interest rates & APR, and the difference between them.
Your offer will also include the amount of crypto collateral you will need to stake to receive your loan. The amount of collateral required will vary based on the LTV (Loan To Value) of your loan. A lower LTV will require more cryptocurrency to be posted as collateral, and a higher LTV will require less.ICCL offers LTVs up to 50% and as low as 20%. (Click here to learn more about LTV calculations). Based on our extensive risk modeling, we determined that this is a sufficiently conservative rate that helps our clients limit exposure to margin calls when the market faces volatility.
Accepting Your ICCL Loan
Once you have reviewed the loan terms, you can accept the offer and send your collateral toICCL’s custodian, Gemini. Gemini is a depository trust and licensed custodian with legal liability and insurance requirements for safeguarding deposits. They also have a perfect custody history with no hacks or client fund losses. Click here for more information on how ICCL stores client funds.
NewICCL clients will receive a welcome packet with information on how to manage their loan, what to do in the event of a margin call, and more. ICCL loans are interest only loans. This means you are only required to pay interest over the term, and can repay in full at any time with no prepayment penalties. If you decide to pay off your loan early, you won’t be required to pay interest on the remaining length of the loan. (Click here to learn more about early crypto loan repayments)
If you have any questions aboutICCL or how our loans work, please contact us at [email protected]. We love hearing from you.