Bankera Loans Introduces the Highest LTV Ratio in the Crypto Loan Market

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Since 2019, the cryptocurrency movement, that seeks to reproduce classic financial services through blockchain technology has undergone enormous growth. In particular, one of the most fluorescent markets was that of crypto-backed loans, an alternative way of obtaining liquidity without having to sell crypto assets.

Crypto Credit Market Coming of Age

Although it is an industry in its infancy, the crypto credit market reached a total of $ 5 billion in late 2019, and growth prospects are still very high. However, no company has managed to establish itself as a leader in the market, and this leaves space for the competition, which in turn should lead to the creation of better services.

In July the team behind Bankera opened its very own crypto-backed lending solution called Bankera Loans. Since then, the company has been making its name in the market as one of the most accessible crypto loan providers, offering loans starting from as low as 25 EUR up to as high as 1M EUR.

Like all other operators, Bankera Loans functions as a financing alternative for crypto owners who seek funds but do not want to liquidate their assets. The difference lies in the conditions through which a credit can be obtained. 

The minimum amount to secure crypto-backed loans starts from as low as 25 EUR (which is currently the lowest minimum limit on the market) and going up to sums as high as 1M EUR. In this way, Bankera tries to target even the smallest cryptocurrency investors, thus covering almost the entire market. In addition, the loan to value ratio (LTV) applied by Bankera Loans can go up to a maximum of 75 percent, one of the highest in circulation.  

LTV is a measure of risk: the lower the LTV, the lower the risk for the lender (and therefore the lower the interest rate for the borrower, the opposite is also true). The  LTV ratio also measures the balance between the loan and the value of the collateral asset. 

Bankera Loans Simplifies the Process

Bankera Loans has therefore created 3 packages that facilitate the understanding of its offer: Lowest rates, Most popular, and Max LTV.

As we can see from the figure, users who choose the Lowest Rate package can choose between different cryptocurrencies as collateral or as a method of withdrawal and repayment. For the Most Popular and Max LTV packages, the collateral currencies accepted are exclusively Bitcoin and Ether. 

The procedure for obtaining credit is much simpler than traditional credit and much more customizable. The user can, in fact, choose a preferred loan amount, loan duration, as well as withdrawal and collateral currencies. Repayments are possible at any time while interest payments are debited automatically every month from the client’s loan wallet. Moreover, Bankera’s own Banker (BNK) token holders can take advantage of lower interest rates by choosing BNK as the currency for interest payments.

A fairly young platform, Bankera Loans, currently offers a very interesting alternative to the existing services. In addition, the team has revealed that a referral program will be introduced shortly where clients will be able to earn 10% of the fees (interest) paid by their referred users on Bankera Loans.

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