5 mins

How to Publish a Loan Request in 6 Easy Steps

Daniela Cherkova
Aug 10, 2018

Please let us know if you have any questions, suggestions or recommendations about your loan application. Now, without further ado, let’s get started.

Step 1. – Choosing the loan base currency

The base currency of a loan is the currency in which the repayment schedule is calculated.

If you chose the recommended Euro as the base currency, the loan repayments are calculated in Euro.

If you chose bitcoin, then the you need to repay the bitcoin loan amount plus interest.

The actual payment is still conducted in bitcoin. But the amount of bitcoins that are repaid each month changes with the bitcoin price.

Consequently, we recommended taking a loan denominated in Euro, as the value of the Euro is stable and provides predictable repayment amounts.

The value of the payment in Euro is fixed. This is done to mitigate bitcoin price fluctuations for borrowers and lenders. 

Step 2. – Choosing your loan amount

The minimum loan amount you can request as a borrower is BTC 0.1.

The maximum amount you can take out as a borrower depends on your debt capacity, the number of outstanding loans as well as the loan terms you decide on. Independently of these factors however, the maximum loan amount is set at €25,000.

Never take out more than you can confidently repay.

All borrowers are required to go through a 3 minute video identification with our partner identity Trust Management. For further details check out this article.

Please note that the number of loans any borrower can have at one time is 1. 

Step 3. – Choosing your loan terms

Your loan terms decide the length of the repayment period.

For loans which are used as working capital, shorter terms are advisable. The revenue generated by the new working capital should help pay off your loan amount faster.

Shorter terms give you access to lower interest rates.

Loan purposes which do not bring fast returns should be spread over longer periods to minimise repayment amounts and ensure leeway for unfavourable financial circumstances.

Importantly, a 6 weeks loan requires only one single repayment.

Loans over 6, 12, 36 and 60 months require fixed monthly repayments.

Loans with a term of 6 months or more can be repaid early, but not before the first payment of the loan is due.

For more information on this please visit our fees page. 

Step 4. – Giving the purpose of your loan

The purpose you give is an important indication to investors about your motifs. Let’s take a look at the different loan purposes.

  • Working capital – Funds for supplies, construction material, unfinished goods
  • Investment – Purchase of a car, machines, mining hardware etc
  • Renovation – Costs for house or other renovations and repairments
  • Education – Continuing education and training
  • Refinancing – Refinancing of other loans

Once you have identified the correct purpose for you loan, you are faced with your loan description. This is an important part of the application process.

It shows potential investors how you plan to use their investments and gives them an indication of your likelihood of repayment.

When writing your description, address the following points to maximise your chances of getting funded.

  1. Explain what you are planning to do with the loan.
  2. Give a brief summary of your professional background.
  3. Explain how you will repay the loan
  4. Post your website and contact email in order to ensure transparency and engender trust.

When writing your description it is advisable to ensure a good written style. This does not have to be elaborate but it definitely helps to avoid spelling and punctuation errors.

Another tip to keep in mind is to make your description easily legible. This includes keeping sentences short and avoiding irrelevant information.

Once this step has been completed, click continue to proceed to the next step. 

Step 5. – Checking your loan request

Once you press continue you will have the opportunity to check your loan one final time before it is published.

Here you will see all the key information regarding your loan request.

You will notice that the effective interest rate is not equal to the nominal interest rate. This is because the effective interest rate contains the origination fee which all borrowers have to pay.

The origination fee is between 1-3%. For more information please visit our fees page.

A feature you will see here for the first time is the auction. This refers to the amount of time your application will be available to investors.

All applications are available for a maximum of 14 days. If your loan request is financed up to 60%, the loan is considered successful and the funded amount will be paid out at the end of the auction.

If the total funded amount does not reach 60% the funds are returned to the investors.

It is important for you to double check all the data you have provided. Once you have published your loan request, you will not be able to change it.

Instead you will have to delete the false loan request and publish a new one.

Step. 6 – Checking your payment schedule

Once you have made sure that your loan request corresponds with your wishes, click on the blue button entitled “Show Payment Schedule”. This will allow you to view the repayments you will have to make if you submit your loan request.

It is very important to know that the scheduled repayments can be made before the loan application is submitted.

In the case below, only three of the 60 scheduled repayments are shown. The total repayment will stay the same throughout the life of the loan.

If you are confident that you can make your repayments on time, and you have checked the data to make sure it is correct, press the blue “Publish” button to submit your loan.

You have published your loan request

Once you have published your loan request, it will appear in the “browse loan listings” segment.

The auction will now take 14 days in which investors will be able to place their bids. At the end of this period, the loan request will be granted if the total funded amount is 60% or higher. If the amount is below the required percentage, the bitcoins are returned to their respective investors.

Congratulations on publishing your loan

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