Editorial Review

CoinLoan Review: Strong Leadership Team Provides Solid Services

CoinLoan offers high rates with an emphasis on security, but does their legitimacy make up for their lack of insurance?

March 15, 2020

CoinLoan Loan Review

CoinLoan Logo

CoinLoan Instant Loan

4.0 Editor's Rating
on CoinLoan's website

CoinLoan Instant Loan

4.0 Editor's Rating
Loan details

KYC NOT required

Loan-to-value: 5-70%

Terms: flexible

Collateral accepted




At CoinLoan you have the benefit of high LTVs and customizable loans, but CoinLoan's liquidation policy is unforgiving and their instant loan service comes with a high interest rate.

Loan Details

There are two options for loans at CoinLoan: instant loans and the loan marketplace. Instant loans have set parameters and if you agree to those terms you can get a loan instantly. In the loan marketplace you can set your own parameters (interest rate, repayment period, etc.) and if someone on the other end of the market agrees to your terms, than you get your loan. For the loan details, we will be discussing CoinLoan's instant loans.

  • Interest rate: 10%
  • Monthly payment: $41 (for a €5,000 loan)
  • Repayment period 1 month - 3 years
  • Service fee 1% of loan
  • LTV rates 5% - 70%

An important aspect of CoinLoan to note is that changing your LTV does not affect your interest rate or monthly payments. Decreasing your LTV on CoinLoan simply raises the amount of collateral you need to stake and lowers your risk of liquidation.

Liquidation Risk

On CoinLoan you must agree to their Liquidation Threshold terms. The highest LTV you can obtain for a loan is 70%. If your LTV increases due to a decrease in the value of your collateral, you must either stake more collateral or pay off a portion of your loan. CoinLoan will notify users if their LTV reaches 80%. Once their LTV reaches 90%, their collateral is liquidated automatically by the system to protect lenders from losses.

CoinLoan's loan agreement also states that collateral is liquidated in the event of a default. The amount liquidated equates to your monthly payment.

In either of the cases above, you will end up owing CoinLoan for any costs associated with liquidating your own assets.

Supported Currencies

On the instant loan page, you can stake the following cryptocurrencies as collateral:


in exchange for the following currencies:

  • TUSD, USDC, PAX, USDT, EURS, as well as fiat currencies EUR and RUB.

What CoinLoan's Loans Do Well


If a borrower decides to pay off their loan in CLT, CoinLoan's in-house token, their borrowing fees are cut in half. Typical borrowing fees amount to 1% of the total loan amount, so if you are borrowing large sums, paying in CLT may save you a pretty penny.

Lending Marketplace

Borrowers do not need to be restricted to the confines of CoinLoan's Instant Loans. They can explore the lending marketplace where borrowers and lender alike can agree on their own terms. A borrower can customize aspects of their loan like which currency they get paid in and which they offer collateral in. They set their interest rate and loan repayment length. They can set a range of acceptable loan amounts and if they can find a lender which agrees to all of these requisites, then the loan is ordered.

On the flip side, if you are interesting in lending, you can earn offer your own currency in this overcollateralized system. If someone accepts your parameters, then you can make some relatively risk-free passive income on your assets which would have otherwise been sitting idly.

Why You Might Want To Choose Another Service

USD Not Supported

You cannot take out a loan in CoinLoan and get paid in USD. CoinLoan has USD functionality in their loan markertplace so theoretically you should be able to receive USD, but there are no available loans which pay USD. The marketplace also seemingly accepts the pound and the Russian ruble, but neither of those fiat currencies have any available loans either. It seems like for now if you want a loan to be paid out in fiat you must accept it in euros.

High Interest Rates

CoinLoan's 10% standard interest rates on their instant loans is relatively high. This rate guarantees you can get a loan immediately, but is slightly higher than what you might find elsewhere. On the marketplace you may be able to find a lower rate, but if you want a loan instantly you may have to pay a premium through CoinLoan.

To Wrap It Up

CoinLoan offers a very flexible loan program. Their marketplace offers a level of customizability which is challenging to find elsewhere. Although CoinLoan offers a high rate, they also provide a high threshold for liquidation. Beware if you cross that threshold, as CoinLoan has the right to liquidate all of your collateral instantly and automatically.

CoinLoan Company Review

On all accounts, CoinLoan, an Estonian company, appears reputable and trustworthy, but does their lack of insurance negate the strides they've been making to bolster their own legitimacy?

Business Background

CoinLoan was founded in February 2017 in a private round of funding. CoinLoan's legal name is ExFinance OÜ which is registered in Estonia, a developing tech-startup hot bed in the EU. CoinLoan founders Alex Faliushin and Max Sapelov run the company which employs approximately 11-50 people.

Withdrawal Policies

CoinLoan does not charge a fee to deposit or withdraw your cryptocurrency, unless you are depositing by credit card which requires a 4.2% fee. Assets are not locked up in CoinLoan's interest bearing account meaning you may terminate their service whenever you wish. If you decide to take your funds out before the first of the month (the date when interest is paid out), you will still receive the interest your earned, but it will still be paid out on the first of the month.

KYC Policies

As with all legitimate business endeavors, customers are subject to KYC/AML policies. CoinLoan is no different. They ask for the standard information: name, email, address, photo ID. CoinLoan will also ask you for a selfie. One important aspect of CoinLoan's KYC process is that they send your information, including your biometric data and banking information, to a London based company called, Sum and Substance Limited. Sum and Substance seems reputable, but you may want to do your own research.


CoinLoan's website is sleek, refined and easy to understand. Their important legal documents are displayed prominently and they have a very informative FAQ for any questions you may have. They have representatives on standby in an instant messaging chatbox, ready to answer an questions at a moments notice. Their website even has language capabilities for German and Russian speakers, a touch seldom seen in the nascent DeFi space. All in all, their site is well-crafted which adds to the CoinLoan experience rather than detracting from it.


Security is paramount at CoinLoan. Assets are never stored in hot wallets and all transactions are performed manually by the CoinLoan team. This is of course a trade off. Lack of hot wallets means transactions cannot be instantaneous, but slight delays are a small price to pay for increased security. CoinLoan's cold wallets have never been connected to the network, and each transaction requires multiple signatures. On top of this, CoinLoan openly discusses their ten security measures which rounds out a solid list of best-in-practice solutions you should always look for in third-party custodians.


The information regarding their privacy and security policies is prominently displayed on their website. If you have a question about their services, you can expect a reply within minutes from a CoinLoan employee on their website's instant messaging app. These features, coupled with a strong business background, points to a company which is attempting to provide an honest and reliable service.

Low Barriers-to-Entry

CoinLoan does not restrict their service based on geographical location. They have low minimums and high maximum account balances. Their language services are a clear attempt to include parts of the population otherwise disenfranchised by language obstacles. CoinLoan is doing a good job making their services accessible to everyone.


CoinLoan does not offer traditional insurance for its customer's assets. They explain their decision as a tradeoff with security. CoinLoan argues that some common insurance providers offer incomplete policy measures. CoinLoan also argues that insurance works well for companies lacking knowledge of security best practices. According to CoinLoan, a company who lauds its long history of security experience, this does not apply to them. Regardless of their reasoning, no insurance means more trust, or at least more centralized trust. If you decide to use CoinLoan's services, you are going to have to trust they are doing the right things with your assets.

To Wrap It Up

For many investors, ease of mind is the name of the game, especially within this DeFi space where nothing is true unless you can verify it yourself. In this regard, CoinLoan excels. We know where CoinLoan is registered, we know under which legal entity they operate and which legal policies you must agree to in order to use their services. However, with no insurance on assets, your trust is consolidated. You now must trust CoinLoan and CoinLoan alone to do the right thing with your assets. Before using CoinLoan it is important to ask yourself: how much do you value legitimacy over indemnity?