The CoinDepo platform is a digital financial services company that offers a wide spectrum of innovative earning and cryptolending products and services to investors, entrepreneurs, and traders. It has established itself through a long history of partnerships, where it acted as a liquidity provider and pioneer in the digital assets field.
CoinDepo’s main products include high-yield compound interest on the most important cryptocurrencies and stablecoins, as well as an Instant Credit Line in cryptocurrencies and stablecoins. Among all products, microcredits in the form of cryptocurrencies stand out in particular. This article is going to discuss this product.
What is a microcredit? It’s a small amount of money provided by microlending organizations primarily to underserved citizens, living in poor regions where the banking infrastructure is lacking and the opportunities to raise funds are limited. This amount is typically less than $1,000, and clients often borrow no more than $100.
These loans started in the mid-70s with a group of women from Bangladesh, who borrowed a sum of $27 to fund the creation of their own small business. They later paid off the loan in full and managed to sustain the business and become eligible to apply for bigger loans.
This money is mainly used to start small businesses or pay bills for water, food, or house utilities. Due to the economic status of the borrowers, microlending organizations can often omit formal agreements in favor of pressure put on clients by their communities and family members. The surveys show that the clients tend to pay off their loans in almost all cases.
These loans are characterized by relatively high-interest rates compared to bigger loans, as the lenders also need to grow and provide credit products to more citizens. The repayment deadlines can be very flexible, despite that they’re usually agreed upon before the loan is taken. However, they don’t exceed a month or two, which makes them more manageable both for borrowers and lenders.
Some organizations request a savings account with some share of the client’s income that serves as a security in case he or she defaults. If the installments are successfully repaid, the money gets back. However, the credits are more frequently issued without collateral accounts and common bank protection practices. Instead, microlenders tend to rely on the personality of borrowers, their recognition in the neighborhood, and the very situation that emerges before the agreement.
These loans are typically given in the form of traditional cash. The volatile crypto coins like Bitcoin or Ethereum are not widespread among microfinance organizations, as they’re decentralized; the changes in their value are hard to monitor, analyze, and predict, which can hurt both the lender and borrower. CoinDepo offers microcredits in stablecoins – crypto assets, whose rates are tied to the national currencies.
How CoinDepo Looks at Microloans
The main activity of the service is to help its customers by providing additional liquidity through instant loans and microloans in cryptocurrency and stablecoins, and other products related to earning compound interest on digital assets. CoinDepo sees its mission as combining classic financial services with cryptocurrency without borders and restrictions, using well-known banking products and the latest technologies.
While doing it, CoinDepo is developing the most contemporary financial products, such as compound interest accounts for cryptocurrencies and stablecoins, instant loan programs with branded crypto credit cards and no collateral requirements for unsecured microloans issued in stablecoins that are pegged to the US dollar exchange rate.
By adding cryptocurrency, the service brings this type of loan to the digital sector and makes it truly democratic and global. CoinDepo challenges traditional norms in banking and digital finance world, setting itself apart and being an innovator in the industry. How do the microloans from CoinDepo work?
Like other cryptocurrencies, stablecoins received from the microloans can be spent using a crypto credit card or converted to regular money, and spent for various purposes such as investment, help for the neighborhood, or paying immediate bills for water, food, house utilities, or taxes. Since it is a microcredit, the amount in stablecoins does not exceed the equivalent of $1,000.
These crypto-centric loans are best for people living in an area where there is Internet, but no developed banking industry willing to lend to locals. Since a borrower’s creditworthiness will be determined remotely, CoinDepo uses an identification algorithm and checks their actions with digital assets, such as transaction history or blockchain operations.
Who can apply for such a microloan? All CoinDepo users who created an account and passed the KYC and AML process, which requires an identification document such as a passport or ID card. It’s needed to verify the borrower’s credibility and trustworthiness. The repayment deadlines and terms are agreed-upon with borrowers, so they can align the credits with their cash flow.
CoinDepo shares an inclusive and cutting-edge standpoint on the future development of lending in the digital finance industry. Using the opportunities of blockchain technologies and crypto coins, the service aims to transform borrowing into an accessible practice that matches the objectives of various borrowers.
How does CoinDepo want to implement microloans? One of the tools that can help is the unique borrower confirmation algorithm developed by the company. It verifies the identity of borrowers and checks their background and behavior on the platform, and adherence to legal requirements.
The algorithm is a part of the know-your-customer (KYC) and anti-money-laundering (AML) systems that CoinDepo uses. It can help reduce loan defaults, meet all risks, and remove collateral accounts, which makes these financial products even more accessible to wider audiences.
CoinDepo emerges as a powerhouse, meant to revolutionize the way people consider financial resources. Microcredits in the form of stablecoins can become a reliable way to bring underserved individuals into the global economy and give them a chance to empower their communities.
The company bridges a gap between cryptocurrencies and traditional banking and lets people from across the world apply for the loan, therefore democratizing this industry. The absence of collateral makes it even more attractive to customers.
CoinDepo offers additional products, such as six types of Compound Interest Accounts, allowing customers to earn high-yield interest ranging from 12% to 24% APR + compound interest on major cryptocurrencies and stablecoins. The users can deposit or withdraw crypto assets on these accounts anytime with no minimum.
Additionally, there are high-yield earning solutions for VIP clients and institutions, and Instant Credit Line with crypto cards that have cashback of up to 8%. If interested, consider registering on CoinDepo and checking the blog service to stay up to date with its products and the latest trends in the cryptocurrency industry.