Does Bitcoin or cryptocurrency offer loan service?

[Truthlovecoins]

I have understood what centralized and decentralized systems are and I know that banks are centralized with physical locations/attributes, with strict monetary policies governing it. While decentralized system is the crypto currency or the Blockchain technology which is the where Bitcoin is built on.

Both have helped to solve human financial problems in one way or the other, depending on the means which one earns from.
Ignoring all other features I could talk about and with my focus on loans schemes, I want to ask if as banks offer loans to individuals, companies even to the government, does Bitcoin or any other cryptocurrencies or exchange offer loan service?
 If yes, what is some criteria that may be required?

[1714505803]

1714505803

[Nwada001]

While decentralized system is the crypto currency or the Blockchain technology which is the where Bitcoin is built on.

Just to clarify, not all crypto currencies are decentralized; most altcoins are actually centralized.

Bitcoin or any other cryptocurrencies or exchange offer loan service?
If yes, what is some criteria that may be required?

Bitcoin itself doesn't give out loans to holders; one of the reasons is that it's decentralized and not controlled by anyone, but there are private entities and companies that give out crypto loans to people, and one of their conditions that you must meet is just as similar as those of the bank's  "collateral," but this time if the lending is to take place online, your collateral must be a valid crypto, either altcoins or Bitcoin, which will be deposited into an escrow account or your lender's account. This collateral protects the lender from completely running losses if you decide not to pack back.

Check out the forum lending board
If you actually need any loan, maybe you could find a suitable lender out there and meet up with their terms and conditions.
But I will personally recommend Shasan Lending Services It's always faster to approve and have some favorable T&C.

[bayu7adi]

A bank is a business entity, whereas Bitcoin is not. Bitcoin is a digital currency, often referred to as cryptocurrency. So, Bitcoin doesn't offer lending services like banks do.

But can someone borrow Bitcoin? Well, in this forum, there are a few individual-managed Bitcoin lending services. You can find them in the Economy > Marketplace > Lending sub-forum . Just make sure you only transact with trusted users who have a good reputation.

I can recommend a few reliable services for you:

• DarkStar's Loans | BTC, USDT by: DarkStar_
• ★ ★ ★ LENDING ► CONDORAS SERVICE ◄ ESCROW ★ ★ ★ by: condoras
• Lending Service Started! (USDT/BUSD/BTC/LTC/ETH/DOGE/ETC)! by: shasan
• 🌟🌟🌟🌟✨ zazarb's Quick-Loans & Escrow 🌟🌟🌟🌟✨ by: zazarb

Considering your level of trust, you can start by applying for a loan with collateral that is equal to or greater than the amount you borrow. Always read the rules of each service provider to avoid any futile actions.

[Truthlovecoins]

While decentralized system is the crypto currency or the Blockchain technology which is the where Bitcoin is built on.

Just to clarify, not all crypto currencies are decentralized; most altcoins are actually centralized.

Bitcoin or any other cryptocurrencies or exchange offer loan service?
If yes, what is some criteria that may be required?

Bitcoin itself doesn't give out loans to holders; one of the reasons is that it's decentralized and not controlled by anyone, but there are private entities and companies that give out crypto loans to people, and one of their conditions that you must meet is just as similar as those of the bank's  "collateral," but this time if the lending is to take place online, your collateral must be a valid crypto, either altcoins or Bitcoin, which will be deposited into an escrow account or your lender's account. This collateral protects the lender from completely running losses if you decide not to pack back.

Check out the forum lending board
If you actually need any loan, maybe you could find a suitable lender out there and meet up with their terms and conditions.

I didn't think there were altcoins which were also centralized. I learnt something new today.

Am guessing this is one reason why the KYC verification is also necessary to ensure the one seeking the loan don't disappear with or make loss in total.

[MoonOfLife]

Bitcoin is just an asset, a decentralized currency, not controlled by anyone. How can it provide you a loan service? So I'd say a lot of people are stupid trying to compare bitcoin to banks. They always say that banks should be eliminated when banking is a field that provides us with hundreds of services, not just savings. Too many people have no knowledge of economics and are stupidly crazy about bitcoin. Bitcoin is the perfect choice for investment, protecting privacy, but it cannot compare to the entire banking industry.

If there is any service that lends money to bitcoin, it is also a centralized service run by humans, not bitcoin.

[tabas]

does Bitcoin or any other cryptocurrencies or exchange offer loan service?
 If yes, what is some criteria that may be required?

For exchanges - yes, they do. Just check out Binance for this: https://www.binance.com/en/loan
All details are already there but this has to be specific borrowing to be used on their own platform and for you to trade into their all types of market. Read the FAQ from there.
OKX has also that loan feature: https://www.okx.com/loan

Aside from that, we've got the Lending section of the forum and there have been reputable people that are allowing people to take loans from them. If you're known and you ask to have a no-collateral loan and they agree, they'll grant you. But for the majority, there should be a collateral that you can place on and it should be more than the value of what you're borrowing.

[PX-Z]

I want to ask if as banks offer loans to individuals, companies even to the government, does Bitcoin or any other cryptocurrencies or exchange offer loan service?
 If yes, what is some criteria that may be required?

Bitcoin is not a Bank that can offer services. If you mean if there are companies offers Bitcoin lending, yes there is. And guess what, most companies who offered lending with cryptocurrency filed bankruptcy last year and earlier this year, there are lots of them actually who cannot  bear the bear market which is unfortunate that most people lost funds and jobs too.

[Nwada001]

Am guessing this is one reason why the KYC verification is also necessary to ensure the one seeking the loan don't disappear with or make loss in total.

Even in crypto exchanges and other centralized platform KYC alone is not enough evidence or solid documents that can guarantee that one will pay back loan, in fact I don't think their is any platform which gives out loan nowadays to customers who have just passed KYC verification, because in today's world almost any body can be another person, their are dark-net where hackers sell full details uses information which could be used to verify any platform and claim the next person's identity, ID verifications or any form of identification to be used as collateral are mostly common to borrowers who travel to a foreign country which their Visa and passport is one of their Vita documents which they need to exist the country, those are the situation where lenders can take such documents as collateral but it's actually limit to the amount they want to borrow, other wise real collateral that can be sell anytime in the open market to recover loses is needed.

[romero121]

Earlier there were few exchanges providing with the loan service. In particular, it is Poloniex that I've come across and we need to provide collateral to receive loans. Apart it is trusted members on the forum who used to issue loans based on collateral as well as on trust. Nowadays such services were much limited.

Even some tokens came to the market with the concept of providing loans. I'm not sure whether they succeeded with the objective or those were just another tokenising.

[leonair]

I have understood what centralized and decentralized systems are and I know that banks are centralized with physical locations/attributes, with strict monetary policies governing it. While decentralized system is the crypto currency or the Blockchain technology which is the where Bitcoin is built on.

All cryptocurrencies are centralized except for a few coins.  Bitcoin can be said to be the original decentralized coin and all other coins have a visible team of regulators. although some coins are coming to the market which are created in such a way that even the team cannot control that coin, the team only does the marketing of that coin. they are known to us as decentralized

I want to ask if as banks offer loans to individuals, companies even to the government, does Bitcoin or any other cryptocurrencies or exchange offer loan service?
 If yes, what is some criteria that may be required?

Cryptocurrencies do not offer loans in any way.  But in the landing section of this forum some people offer loans and they give you that loan through crypto. or any third party agency can provide loan through crypto but I don't know if there is any such agency yet.

[entebah]

I have understood what centralized and decentralized systems are and I know that banks are centralized with physical locations/attributes, with strict monetary policies governing it. While decentralized system is the crypto currency or the Blockchain technology which is the where Bitcoin is built on.

Both have helped to solve human financial problems in one way or the other, depending on the means which one earns from.
Ignoring all other features I could talk about and with my focus on loans schemes, I want to ask if as banks offer loans to individuals, companies even to the government, does Bitcoin or any other cryptocurrencies or exchange offer loan service?
 If yes, what is some criteria that may be required?

there are a few people on bitcointalk that offer loans but with your account just created this month i believe you need collateral to take a loan and if you have collateral then just check this section Lending.
i saw a few exchanges that offer loans but you still need 70~80% of the collateral amount in another crypto to be able to take a loan

[Darker45]

I don't know with other cryptocurrencies, but, no, Bitcoin does not offer a loan service. There may be a number of Bitcoin-related companies that offer loan services, but they aren't Bitcoin. They are centralized business entities that create their own rules and run their own operations. They aren't decentralized. They aren't ruled by codes etched in stone. Unlike Bitcoin, they aren't censor-proof, immutable, trustless. They could pull the rug anytime on you, scam you, charge you with hidden and inexplicable fees, and so on.

[OcTradism]

Your question is not a right question.

Bitcoin, cryptocurrency or gold or fiat currency can not offer loan service. I am really sure about that.

If you are a person who has a loan service, you can do your business with many means for your loan service. Those means can be Bitcoin, alternative cryptocurrency, gold or fiat currency.

Some lending services in forum at Lending board

[yhiaali3]

As far as I know bitcoin or cryptocurrencies do not offer loans but there are some centralized exchanges or platforms that offer cryptocurrency collateralised loans.

You can get a loan with the collateral of the cryptocurrencies you own within the exchange you work in and you have to repay the debt in a certain time with interest.

For example, this site https://spectrocoin.com/ offers you a service to get 1000 euros, but you have to deposit 0.081BTC as collateral, with an interest rate of about 8.5% for a year.

[crunck]

does Bitcoin or any other cryptocurrencies or exchange offer loan service?
 If yes, what is some criteria that may be required?

For exchanges - yes, they do. Just check out Binance for this: https://www.binance.com/en/loan
All details are already there but this has to be specific borrowing to be used on their own platform and for you to trade into their all types of market. Read the FAQ from there.
OKX has also that loan feature: https://www.okx.com/loan

Aside from that, we've got the Lending section of the forum and there have been reputable people that are allowing people to take loans from them. If you're known and you ask to have a no-collateral loan and they agree, they'll grant you. But for the majority, there should be a collateral that you can place on and it should be more than the value of what you're borrowing.

I think OP is asking does bitcoin provide lending services like banks or not. He is not looking for services from organizations or individuals that use bitcoin for lending, which is completely different. If you want to borrow through these institutions, it is no different from a bank, in that case, I would go to the bank and borrow money from them and buy as many bitcoins as I want. Why borrow from these unreliable centralized institutions?

[Jawhead999]

For exchanges - yes, they do. Just check out Binance for this: https://www.binance.com/en/loan
All details are already there but this has to be specific borrowing to be used on their own platform and for you to trade into their all types of market. Read the FAQ from there.
OKX has also that loan feature: https://www.okx.com/loan

Centralized exchange which offer loan service is asking a valid and liquid collateral, they ask top altcoins as the collateral.

I think @OP is asking if he can get money (Bitcoin or altcoins) where he don't need to give money (Bitcoin or altcoins) as the collateral, just like banks or centralized institutions where they only ask KYC, vehicle document or house/land certificate.

Am guessing this is one reason why the KYC verification is also necessary to ensure the one seeking the loan don't disappear with or make loss in total.

In Bitcoin space, KYC is useless. No one can make sure if the KYC is legit, it could be someone KYC, bought KYC, photoshopped KYC etc.

@OP if you want to ask a loan, why you're not ask it in banks?

[davis196]

I remember that there were Bitcoin P2P lending platforms 5-6 years ago, but most of them went bankrupt or exit scammed.
It's hard to use crypto for loans, because of the price volatility and the high risk. Getting BTC loans by using altcoins as collateral seems kinda pointless to me. The altcoin prices might collapse faster than the BTC price, so the lender has to liquidate the loan and the sell the collateral fast. This makes the whole process more like crypto trading, rather than borrowing. Also the interest rates for crypto loans seem to be higher than the fiat loans. I wouldn't bother with crypto loans, if you ask me.

[John Abraham]

The discussion should have closed right after Nwada001's post. He explained everything very well. In case OP wanted to hear from more users and want to verify if he is right, I want to vouch for his post and say there is nothing to add new right after his post. Most of us will repeat the same thing he wrote. You might get different answers if someone doesn't understand what are you looking for.

While decentralized system is the crypto currency or the Blockchain technology which is the where Bitcoin is built on.

I want backing Nwada001 here. Not all cryptocurrencies are decentralized. Most of them can create unlimited coins out of thin air. Did you notice how Terra Luna increased their supply during the crash?

Both have helped to solve human financial problems in one way or the other, depending on the means which one earns from.
Ignoring all other features I could talk about and with my focus on loans schemes, I want to ask if as banks offer loans to individuals, companies even to the government, does Bitcoin or any other cryptocurrencies or exchange offer loan service?
 If yes, what is some criteria that may be required?

I never took a loan from the Internet. But yes, some centralized exchanges offer loans. The main criteria to get a loan from them is you have to provide them collateral, and they accept altcoins as collateral. This is not the main part if you care about privacy. You have to provide KYC on centralized exchanges. So, if you have valid collaterals like altcoins, You can try to get a loan from the Lending section with collateral. Since you are a newbie, don't ask for a non-collateral loan. Your request will be rejected, and you may get tagged as well.

[Lorence.xD]

It doesn't directly says as loan for Bitcoin, some exchanges offer some people to borrow money for them to use since it's still centralized. Where they could convert the funds into Bitcoin via those exchanges which could still count as loan. And also If I know correctly some individual offer some loan where there's a lot of process for you to get the money you could search it up but still be careful as there's a lot of scammers roaming everywhere.

[tabas]

I think OP is asking does bitcoin provide lending services like banks or not. He is not looking for services from organizations or individuals that use bitcoin for lending, which is completely different. If you want to borrow through these institutions, it is no different from a bank, in that case, I would go to the bank and borrow money from them and buy as many bitcoins as I want. Why borrow from these unreliable centralized institutions?

Centralized exchange which offer loan service is asking a valid and liquid collateral, they ask top altcoins as the collateral.

I think @OP is asking if he can get money (Bitcoin or altcoins) where he don't need to give money (Bitcoin or altcoins) as the collateral, just like banks or centralized institutions where they only ask KYC, vehicle document or house/land certificate.

He didn't specify it so it's up to him and know it on his own if the example that I've given suits the need he wants to have for taking a loan. But I am sure that he's aware that when he takes a loan, there's for sure a collateral that he needs to have and yes, a collateral that should be liquid and not just random collateral that the exchange won't agree. But we know that if someone who wants to take a loan but doesn't have any collateral to give and there's a possibility that he'll just default it. Let's just conclude it to him and to those that are thinking of the same if ever that's the case, that lending in crypto and lending in the bank is not entirely different at all.

[Nrcewker]

Not all the coins are decentralised in nature, some are centralised too. If you want loan then definitely you have to prove that you are capable of it and you won’t default it. Be it decentralised currency or centralised currency, the trust factor remains the same in order to get a loan. There are many sites which offers crypto loans, but for it, you have to do KYC, and prove some collateral to get the loan. Similarly we have also a lending section here in the forum (https://bitcointalk.org/index.php?board=65.0), you can get the loan here, but the collateral and trust factor remains the same.

[tranthidung]

Does Bitcoin or cryptocurrency offer loan service? Another discussion in another topic with a same title.

Bitcoin is built on Bitcoin blockchain and powered by a blockchain technology. It does not provide any service including loan service. What it provides is a blockchain on which people can build their services.

These loans are typically facilitated through peer-to-peer lending platforms or decentralized finance (DeFi) protocols.

Both sides will have to rely on the DeFi operators and they can lose their coins if the DeFi platform collapses or scam exits.

[GreatArkansas]

(....)

These loans are typically facilitated through peer-to-peer lending platforms or decentralized finance (DeFi) protocols.

Both sides will have to rely on the DeFi operators and they can lose their coins if the DeFi platform collapses or scam exits.

I don't think so, there is not proof that these centralized exchanges guaranteed that the funds of their users are being used on DeFi platforms.
Some of them for sure are being used for their own benefits which could lead to the risk of their customers' funds. They must be transparent here. So always advisable is to use decentralized platform that using these centralized.

[YUriy1991]

Good and interesting question. Judging from the title, maybe the direction is a bit different from what you asked, as meant by @tranthidung. However, if you want to know what exchange platforms offer loans to individuals, I'll try to explain a little.

Now. This is an increasingly advanced digital era and this is one of the innovative and responsive solutions in responding to urgent financial needs without having to get stuck in the slow bureaucracy based on traditional securities.

I think this is not much different from banks when you look at their performance and for now large platforms also see this potential as you mean by offering loan services in the form of cryptocurrency loans and they are exchange platforms. Take the easy example on the Binance Platform for example. What needs to be noted here is of course the terms and conditions for each are different and this is based on the legal jurisdiction in which they operate both in terms of identity verification, credit assessment, and volume and liquidity for those who will apply for a loan.

[BTCBroker2016]

Some banks and exchanges do. But it would be fully centralised

[Yatsan]

Possible on third party apps or wallets I guess. Never tried doing so and neither having plans. Through the idea of Loan,  there would be an interest on the mount you will borrow and I think it would be better to borrow fiat amount than directly cryprocurrency for the fact that the value of your loan would increase everytime prices go up unlike with fiat loan wherein the amount would be the same plus the interest. Still, I won't suggest taking a loan to a risky investment. It would be only okay with properties or real estate given that consistency with price increase on the mentioned asset, exist.

To my awareness, there are no exchangers offering such thing even with centralized ones. It would be more possible with online baanking which accepts crypto as payment but I'm not quite sure of the terms.

[Mr. Magkaisa]

I have understood what centralized and decentralized systems are and I know that banks are centralized with physical locations/attributes, with strict monetary policies governing it. While decentralized system is the crypto currency or the Blockchain technology which is the where Bitcoin is built on.

Both have helped to solve human financial problems in one way or the other, depending on the means which one earns from.
Ignoring all other features I could talk about and with my focus on loans schemes, I want to ask if as banks offer loans to individuals, companies even to the government, does Bitcoin or any other cryptocurrencies or exchange offer loan service?
 If yes, what is some criteria that may be required?

     -  There is no bitcoin service called here in terms of loan in this industry. But for people who believe in bitcoin, there are lenders,
and that is also here on this forum platform. And you can find it in this section https://bitcointalk.org/index.php?board=65.0

So what others have said here is correct that most of the altcoins in this business are not decentralized at all but most of them are centralized based tokens such as Xrp, Xmr and others.

[maydna]

Bitcoin does not offer loan services because it is individual, so if someone wants to buy it, he buys it with his own money. Perhaps, if someone signs up for a third party service, some services offer loans to their members so that people can borrow money to buy Bitcoins. But you have to watch out for this because usually there will be requirements that are difficult to fulfill, but we don't know the truth.

And if you want to create a company with a service to borrow money from members, you have to ask the members for guarantees so that if your members can't pay off the loan, you can take the guarantee.

[flyingcarpet]

You need to meet certain conditions and have real assets to be able to grant a loan. This is a market rule that applies in most places. But Bitcoin doesn't meet these conditions, and it shouldn't. That's because Bitcoin doesn't have an owner or a company. There are institutions that give Bitcoin or any other coin on credit, but I haven't used it. Maybe even this will be formalized in the future. After all, credit is a resource that everyone may always need.

[Agbe]

does Bitcoin or any other cryptocurrencies or exchange offer loan service?
 If yes, what is some criteria that may be required?

Op this your question looks like this, does dollar give loan? How do you feel the question now. Dollar never give loan as well as bitcoin. But individual who uses bitcoin can give loan which can be found in
Lending Board . So you can go there and read the rules and chat up any Lender and if the T/C are okay with you then you can collect the loan. I will still say NO bitcoin does not give loan but the users.

[Texac]

I have understood what centralized and decentralized systems are and I know that banks are centralized with physical locations/attributes, with strict monetary policies governing it. While decentralized system is the crypto currency or the Blockchain technology which is the where Bitcoin is built on.

Both have helped to solve human financial problems in one way or the other, depending on the means which one earns from.
Ignoring all other features I could talk about and with my focus on loans schemes, I want to ask if as banks offer loans to individuals, companies even to the government, does Bitcoin or any other cryptocurrencies or exchange offer loan service?
 If yes, what is some criteria that may be required?

basically, bitcoin is just an asset like gold or fiat, it cannot and does not provide a lending service on its own.  all loan services require human intervention. When there are many people in need, organizations, companies, and banks will create services and provide them to everyone, they can use fiat, gold, and bitcoin as a means of payment and lending...Currently, there are several centralized exchanges that offer bitcoin loans by collateralizing other assets, but I do not recommend borrowing bitcoin as its volatility can get you into trouble.

[dezoel]

Banks are controlled by people and are a business that is run only to earn money, and giving out loans is one of their most profitable products to earn money, while on the other hand, Bitcoin is decentralized and isn't in anyone's possession, so it doesn't need money, so there is no need for Bitcoin to provide loans for people only to get some interest.

If you talk about exchanges or some other platforms and protocols like DeFi protocols, they do offer loans to their users and charge interest from them since they are not decentralized and the people behind them need money to run their projects and pay their workers.

[Victorik]

Bitcoin itself is decentralized; meaning it is not controlled by anyone, and because of this singular reason it can't be loaned. However, there are third party loaning agents I believe who can loan you some BTC or crypto currency if you meet certain terms and conditions.

[GideonGono]

I have understood what centralized and decentralized systems are and I know that banks are centralized with physical locations/attributes, with strict monetary policies governing it. While decentralized system is the crypto currency or the Blockchain technology which is the where Bitcoin is built on.

Both have helped to solve human financial problems in one way or the other, depending on the means which one earns from.
Ignoring all other features I could talk about and with my focus on loans schemes, I want to ask if as banks offer loans to individuals, companies even to the government, does Bitcoin or any other cryptocurrencies or exchange offer loan service?
 If yes, what is some criteria that may be required?

I don't think that there is a crypto that offer loan service, but there are some people who does that in crypto they offer loan in form of crypto currency.
The criteria or requirement would be up to them, but I don't really see why people would want to do it if they need money why not loan Fiat in order to avoid fees?
The only way that I think they would benefit from it (people who would take the loan) is when they use it to trade and then pay it back when the price drops down but we doesn't know when would it really happen and how long would it take.

[BVeyron]

I have understood what centralized and decentralized systems are and I know that banks are centralized with physical locations/attributes, with strict monetary policies governing it. While decentralized system is the crypto currency or the Blockchain technology which is the where Bitcoin is built on.

Both have helped to solve human financial problems in one way or the other, depending on the means which one earns from.
Ignoring all other features I could talk about and with my focus on loans schemes, I want to ask if as banks offer loans to individuals, companies even to the government, does Bitcoin or any other cryptocurrencies or exchange offer loan service?
 If yes, what is some criteria that may be required?

I suppose it will be possible in the future, but now, due to gaps in legislation regarding cryptoassets in most countries, it's impossible to get a legal loan in BTC. On the other side, due to the same reason taking a loan in BTC can't be considered illegal as well (unless cryptocurrencies are prohibited in the country where a loan is taken). I'm not sure if there are people or companies who offer BTC loans... I'd consider such loan risky, at least at this level of adoption...