Lendabit merges crypto and lending; a new age digital landscape

What is Lendabit?

LendaBit.com is a loan dispensal firm that utilises blockchain and smart contracts to create an advanced, digitally empowered lending space for customers. The corporation was built by individuals hailing from the blockchain sector and the financial sphere, thereby giving the service a mix of financial leverage and technological know how. 

The team behind this unique service operates with a vision whereby the loan market taps into the technological potency of distributed ledgers and blockchain-based services. This new market, in their eyes, creates a conducive and a market-friendly environment for the services that they seek to provide. 

What makes it different from other loan firms?

To facilitate efficient lending transfers, the company draws from the vast financial reserves in global crypto holdings. Crypto based operations help create an enormous and valuable store of value to leverage from, thereby assisting all parties involved. 

The platform is specifically tailored for individuals seeking out loans that hold crypto investments. Such individuals can redirect their crypto assets to put to use as collateral for the loan procedure. Meanwhile, the peer to peer lending platform enables a digitally secure environment where lenders and borrowers can meet and come to an agreement. 

Apart from enabling loans for digital asset owners, the platform helps inhibit any prospective losses that these individuals could accrue through their crypto investments. All in all, this platform’s loan services are oriented towards satiating the financial needs of individuals that own crypto assets. 

How does it work?

A person seeking out a loan in the USD currency is given the alternative of supplying collateral through cryptocurrencies, such as Bitcoin or Ether. And conversely, an individual seeking out a loan in the Bitcoin digital currency would have to supply the collateral in USD. 

With this platform, an owner of significant digital assets would be saved the trouble of selling his crypto assets and then converting the money into collateral. Lendabit essentially allows borrowers to keep whatever investment they had funnelled into the digital currency sector alive, and to use it to facilitate their borrowing credentials. 

Tools offered by Lendabit

Given that the platform operates with the use of crypto-based stores of collateral, it makes use of multiple tools to help in the storage and conversion process. 

Loan calculator:

Lendabit has a specialised loan calculator that helps to ascertaining the fundamentals of the loan that an individual seeks. This tools also helps in the conversion process for the digital assets being put to use. An individual that owns a specific store of crypto assets to use as collateral would need to specify the amount, followed by the amount of money that he requires as a loan. One could also specify the loan term that he needs. The calculator then helps to determine the remaining parameters of the loan, including the interest rate on a daily and annual basis. 

Loan wizard:

Apart from this, a ‘loan wizard’ feature would also be available for access in clients’ accounts. This feature helps to simplify the process of acquiring loans with five simple steps. This feature also helps to affix the interest rate and other surrounding parameters for the loan that the client seeks. 

Digital wallet: sure

Given that Lendabit operates entirely out of the cryptocurrency stores of its clients, the platform has its own special digital wallet. Clients looking to stake their digital assets as collateral would need to funnel their currencies into the wallet to facilitate the process. 

Loaning options:

Clients are given access to a range of standard loans to choose from, as well as the option of tailoring their own specific loan request. When seeking out loans, one can also peruse and choose from multiple loan offers made by lenders. 

Special/Advantageous features

The platform is structured with the intent of eliminating all unwanted factors from the lending and borrowing process, thereby creating a more holistic environment for both parties. 

The website and user interface are slick and upto date, with a design geared to support efficient, fast and secure transactions. 

Borrowers are given the option of laying out their preferences in the entire loaning procedure, and this includes different factors such as the interest rate, term and loan amount. 

All of the crypto backed loans are kept under close oversight to ensure minimal risk during the entire process. 

Apart from this, the firm maintains a prompt and well tendered customer service machinery, ranging from an email service to a live chat that is almost always available for use. 

Benefits of Lendabit

One of the primary benefits of the Lendabit platform is its incorporation of digital assets in its lending process. The service is designed to specifically cater to those with crypto holdings, and through the usage of crypto-based collateral, the service helps to secure its clients digital assets and to prevent losses. 

In addition to this, given that the service has based its entire financial structuring on the digital assets sector, it has tapped into a vast store of financial backing. In other words, with the booming cryptocurrency sector being the focus of the service, the company has attracted a massive wealth of financial suppliers from this field. This means that there is an ample pool of crypto-based wealth to draw from for any prospective loan seeker. 

When is Lendabit suitable for you as a borrower?

As mentioned prior to this, a person holding investments in the digital assets sector would be the focus of this platform’s service. If you seek out a loan, while at the same time owning a reserve of digital currency that you don’t want to see sold off, then Loanabit gives you just the right platform for both of those needs to meet. The service is not, on the other hand, for those outside of the digital currency sector, who trade collateral merely in cash or in property or anything outside of digital currency. 

Conclusion

Loanabit looks to be making inroads in the sector fuelled by its crypto-based operations and its incorporation of blockchain. The company distinguishes itself and its presence purely out of the usage of crypto as collateral. The value that this service offers to prospective clients resides purely in this regard. For anyone else looking to secure a loan, Loanabit has very little to offer.  As with all online crypto transactions, do your due diligence.

Frequently Asked Questions

How fast can a loan be dispensed?

Based on the information tendered by the website, the speed of the loan depends on the viability of the lenders. As soon as the process of deposits and collateral has been seen through, a registered lender would be willing to carry through the loan. 

In which cryptocurrencies can loans be supplied?

Bitcoin and Ethereum are the two digital currencies that Lendabit is currently accepting. 

In which countries are Lendabit’s services available?

Given that Lendabit’s services are tendered completely through its website, anyone around the world with access to the website would be able to create an account and initiate the process of seeking new loans. 

What is the maximum loan one can acquire through Lendabit?

The platform utilises three verification levels. At the basic email-based verification level, one can access a loan of 300 USD. A client with an extra layer of verification – ID and a picture – is allowed a maximum loan of 5000 USD. Clients at the highest verification level – an address-based verification – get a maximum loan threshold of 200,000 USD.