Bitcoin Forum

i charge 1.2% but what is the recommended interest rate to charge can you explain everything about the best interest rates and the best forumla to calculate it ???

I don't see why btc loan interest rates would be any different than USD. 1.2% seems very low but it all depends on the amount of the loan, length of time, and how well you can verify that the borrower has stable income and means of paying you back.

I am guessing that you can't really verify their credit score or income for these loans, although I could be wrong. If this is the case, I think an interest rate of 7-10% would be more appropriate if it is a loan for like a couple years. If you can verify income and a good credit score, and it is a relatively short loan then maybe something more like 4-5% might be more appropriate.

I just charge a normal rate of 1.2% also for everyweek that he didnt pay depending on the amound sometimes the loaner offers a 10% after 1 a week i accept that offers also but i will decline offers lower than that within a week

The profit percentage needs to be decided based on the amount of lending as well the days of return. If the amount lended is very small and the time period is small, then need to provide with a low percentage of interest and for bigger amount increased percentage of interest need to be set based on the collateral submitted.

I wont lend with interest if I ever decide to lend Bitcoins to someone I wouldn't take any interests from the person, well perhaps I could

Charge %15 annually in Bitcoin and not in dollar. if I am able to earn more with my money then why would I give it to anyone as a loan?

If I had extra money which I didn't need at all then I would've lend it with very low interest rate, only if everyone were like me though.

It depends on your agreement with the borrower. But I hink you must take a look on the lending section and try to see the suitable charge for your lending service. I will vote 0.5 - 1 percent. You must made a good deal with the borrower.

The interest probably would depend how much the person is lending. But usually the lowest amount would be around 0.5-1% minimum of a month, I think I saw that somewhere. But you can actually make an agreement with the loaner.

I have never done that, but I know little about the interest earned on a given loan. About 1% even more the amount of interest to be paid. But there is no provision what percentage of interest to be paid, all depends on the agreement. Between the lender and the person who borrowed. Tips that must be done in providing loans. Choose someone you think you can trust, so you do not lose money on the loan you have given. Because this often happens on the grounds that the borrower does not get the target bitcoin. And can not afford to pay off an existing loan.

I purposely try avoiding taking or giving loans with Bitcoin, because you can never be sure that you will get your money back. Usually I ask for whatever is reasonable. If it's a small amount, I need a sum that I'd worth my time. If it's a big amount, I don't want to take $100s of dollars.

I don't understand those who take a loan in bitcoins. It is necessary not to have a brain at all. Bitcoin is growing in value even if the loan is interest free then the person may year to pay 100 percent or more. It is much better to take a loan in Fiat at any percent.

1-2% depending on how long and how big the loan is. Also, I'm asking 10% on top of the offered collateral to make sure that the borrower would not default. I don't really offer lending anymore but I used to and this is my rates if you want to learn. Only done it twice and it's not really profitable, just a good way to refrain you from spending btc.

quite sure 1.2% is not bad. it's like my friends recommend rates for me before.

1.2% / per month/day/year?

when calculating interest always keep in mind the timeframe/timeline, in this case you haven't givin it to us. A typical loan from a bank can be acquired for 10% interest / year, which makes it a month interest of 0.83%. Personally I'd expect something along these lines, if not cheaper, since blockchain lending reduces many of the costs associated with traditional lending practicies, something like 8% / year would be very attractive IMO

I do not prefer giving any loan to anybody as I require myself sometime btc on urgent basis and more over when I do not the other person I do not prefer giving any loan irrespective what ever % they may provide unless and until that person is very reputed and would not scam then I may offer the loan. Interest rate would differ from loan amount,  person credibility etc in such case.

why would anyone lend any coins to anyone? it's ridiculous and pointless. they don't need it. the only way they ever get anywhere is by providing collateral. why not sell the collateral? the lending thing has never made any sense to me.

I lend out my BTC, about half on Poloniex and half on Bitfinex using a lending bot. Typical rates are 0.017% per day, with most loans being for two days. It works well for me.

I'M not lending BTC to someone, but for some cases the condition is this. It might be unfair but BTC is really an important investment for me, so I charge as high as 40% of the total amount of BTC that he borrowed.
Because you have no proper standard then you must decide for yourself, a 5% is enough and here is an online calculator of interest rate :
https://www.calculatorsoup.com/calculators/financial/simple-interest-plus-principal-calculator.php

That's right, it doesn't make any sens for me too. And It's not secure, is it? Why shall I lend my valuable bitcoins to others? I just don't understand this. They don't even guarantee that I'll get them back at the end.

The interest rate is the price of the coin. Higher the demand for coins the higher the interest rate. People borrow coins to leverage.
My max lended was 270% annual.

It depends on a lender-by-lender basis and the place where they are lending their coins because online portals like BitLendingClub, BitBond, BTCJam, etc. won't  let you get much higher rates that you could get here. But chances of getting scammed at those portals are lesser compared to being scammed here because when you lend here, you are not aware of borrower's intentions whether they would repay or not. I personally charge nothing just for the sake of my religion because it doesn't allow us to take any interest while giving money to anyone.

1.2% per week sounds like a very good deal, works out at nearly 90% per year if compounded. Are these rates easily found and how do you go about protecting yourself?

In the Russian Federation, consumer loans are issued at 25-30% per year) and not all are given!