The Guide to Getting a Crypto-Backed Loan

In July, we announced the official launch of Bankera Loans service. Our new solution aims to provide secure and flexible crypto-backed loans to cryptocurrency holders globally. In this blog post, we present a quick tutorial to guide you along the process of getting a loan with us.

How to get a crypto-backed Loan?

Why get a loan backed by crypto assets?

After purchasing cryptocurrency assets, crypto owners often leave them locked up in wallets, waiting for the price of the cryptocurrency to increase.  As a result, the full potential of these crypto-assets does not get realized.

Rather than merely holding, crypto owners can leverage the value and retain the growth potential of their assets by taking a crypto-backed loan from Bankera. This way, holders can receive financing while getting all their crypto assets back after repaying the loan.

How do I apply for a crypto-backed loan?

Applying for financing at Bankera Loans is simple. Follow our tutorial to get a loan backed by crypto assets in several easy steps.

For those of you who prefer reading, here are step-by-step instructions on how to take a crypto-backed loan from Bankera Loans.

Step 1. Create a Bankera Loans account.

To apply for a loan, you first need to sign up. Our signup process will only take a couple of minutes to complete.

Please note that depending on your selected loan terms you might be asked to verify your identity. Just choose whether you are an individual or a business entity, and you will be guided through the verification process. 

Step 2. Load your wallet.

To request a crypto-backed loan, you need to deposit the cryptocurrency that you are going to use as your collateral to your Bankera Loans account. Currently, you can choose between bitcoin (BTC), ether (ETH), NEM (XEM), and Dash (DASH) cryptocurrencies. We will add more collateral options in the future.

Navigate to “Wallets” in the “App” section of the website and click “Deposit” next to the currency you want to transfer to your account.

Screenshot of the "current wallets" page on Bankera Loans platform.

You will be forwarded to the corresponding wallet. Click “Deposit” once again.

Screenshot of the corresponding wallet page on Bankera Loans platform.

Copy the wallet address provided in a pop-up window. Use it to transfer assets to your account.

Screenshot of the btc wallet address and QR code.

Once the assets are deposited, click “Get a loan”.

Screenshot of the btc wallet page after deposit is made.

Step 3. Customize your loan terms.

Before you can apply for a loan, you will be asked to choose the loan conditions that suit your needs best. Firstly, you need to input your preferred withdrawal amount. A corresponding collateral amount will be automatically calculated for you. We issue loans as low as 100 EUR and as high as 1,000,000 EUR so that both individuals and companies can benefit from our lending solution.

In addition to the collateral currency, you can select your preferred withdrawal currency. The supported currencies include Euro (EUR), Tether (USDT), BTC, ETH, Banker (BNK), XEM, and DASH.

Next, select your loan term from the drop-down menu. We offer short term and long term crypto-backed loans. The maximum loan duration available is 24 months.

You will see your loan conditions: your actual loan amount and the offered annual percentage rate (APR) displayed on the same page. Interest payments are debited from your Bankera Loans wallet automatically every month. Users who choose to pay their loan interest in BNK tokens can take advantage of lower interest rates. Click “Next”.

Screenshot of the loan conditions page on Bankera Loans platform.

Read and accept the Loan Agreement and confirm your loan.

Screenshot of the "Loan Agreement" page with a “I agree to terms” checkbox.

Once your loan application is reviewed, we will send you a notification via email. You can also check the status of your loan in your account.

Step 4. Receive a loan backed by your crypto assets.

If your application is successful, you will receive the crypto-backed loan straight to your Bankera Loans account.

Screenshot of the "Your Loans" page with received loan information

Please note that it is important to maintain your Loan-to-Value (LTV) ratio under control. If your LTV gets too high, part of your collateral will be liquidated to bring down the LTV%. 

Now you know everything you need to take a crypto-backed loan from Bankera Loans. Try our latest product yourselves — the process is safe and easy!

Would you like to see more tutorials on Bankera’s blog? Let us know on our social media channels.

If you have additional questions regarding Bankera Loans service, please contact our support at  [email protected].