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Coinloan Review

Earn on average 10.3% interest per year.
Your investment is secured by a cryptocurencies.

Highlights
  • Get fixed interest hassle-free
  • Secured by overcollaterized crypto assets
  • Invest in consumer loans
  • Instant deposits and withdrawals
Rating
Risk & Return
Usability
Liquidity
Support
FEATURES
Buyback GuaranteeNo
Auto InvestYes
Secondary MarketNo
CashbackYes
PromotionsNo
DIVERSIFICATION
Min. Investment€ 100
Countries1
Loan Originators1
Loan TypeConsumer
Loan Period1 - 84 months
Interest6% - 27%
PROS & CONS
  • Lower risk as loans are secured
  • Max. LTV 70%
  • Regulated and licenced platform
  • Low availability of loans
  • No buyback guarantee
  • Subject to cash drag
_News
_Statistics
_Promo
_Risk & Return
_Due Diligence
_Usability
_Liquidity
_Support
_Summary

CoinLoan Overview

Coinloan is an Estonian P2P lending platform where investors can invest in crypto-backed loans. When investing on Coinloan, you’re not investing in cryptocurrencies but instead loans backed by cryptocurrencies. By investing on Coinloan, you can earn up to 10.3% interest per year.

Is Coinloan a trustworthy platform? Find out in our Coinloan review.

coinloan review

⭐ Learn more about our rating criteria

CoinLoan News

Last update: 1/07/2020

We have currently no news from CoinLoan.

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CoinLoan in Numbers

If you’ve read our other P2P lending site reviews, you might know that when performing our due diligence, the first thing we check out is the site’s statistics page and create a table with all the important figures.

Unfortunately, we couldn’t find either a statistics or an About Us page on CoinLoan’s website, so this review’s table is looking pretty bare...

CoinLoan Statistics
Year founded:2016
Investor's earnings:-
Total loan value:-
Amount of investors:-
Loss of investor's money:-
Average portfolio size:-
Latest financial report:No report available

We reached out to CoinLoan’s customer support, which is very responsive when it comes to registering, but significantly less so when it comes to providing additional data.

As we always do when faced with situations like this one, we sent a set of questions to get a better idea of the key facts around CoinLoan. Unfortunately, no one came back to us.

Do you think it’s wise to invest on a P2P platform that isn’t able to provide a short introduction about the team? We’re suspicious...

Keep reading to find out more about our experience with CoinLoan.

CoinLoan Promo Code

Looking for a promo code or additional cashback bonus? We’re normally able to provide our readers with one. But not this time. CoinLoan isn’t offering any bonuses for new investors at the moment. If the crypto-backed P2P platform changes its terms in the future, we will update this review.

CoinLoan Requirements

In order to register and invest on CoinLoan, you need to fulfill the following criteria:

  1. Be over 18 years old
  2. Have a valid ID document

Sounds simple, right?

Not quite. The registration on CoinLoan is painful.

We had to verify three times in order to get approved. The software used to upload the above documents and the selfie didn’t work properly.

In addition to that, you need to activate the two-factor authentication (2FA).

Not that 2FA is bad, but it can take time to figure out how it works if you’re not very tech-savvy. (You can use a Google Authenticator to validate your logins into your account).

After you are verified, you can deposit funds to your account. The following currencies can be deposited: euros, Bitcoin, Ethereum, TrueUSD, Litecoin, USD Coin, Tether, Monero and Bitcoin Cash.

We have tested this feature and deposited a small amount in euros. Our account got funded within one business day. It took the same time to withdraw our funds with a SEPA transfer.

CoinLoan also allows you to fund your EUR account with Mastercard or Visa. Overall, deposits and withdrawals work just as you would expect.

Risk and Return

When investing on CoinLoan, you are funding loans that are backed by crypto-assets. This means that the borrower deposits cryptocurrencies on their account as collateral.

If you’re familiar with EstateGuru and the platform’s use of mortgage as collateral, think of CoinLoan’s equivalent as cryptocurrency.

The platform’s max. loan-to-value (LTV) is 70%. If the value of the collateral decreases and the LTV increases up to 90%, CoinLoan will sell the cryptocurrency (collateral) and pay back your money.

Borrowers will get notified as the LTV changes due to market fluctuation of their crypto-assets, however, during a fast downturn of Bitcoin (or other crypto-assets), the sell-off of the collateral can cause significant losses on the borrower’s side.

Borrowers always have the option to repay the loan or deposit more cryptocurrency to keep the LTV at max. 70%.

Either way, you are well protected because the collateral will be sold as soon as the LTV reaches 90%.

This platform offers a very solid protection of your money.

When it comes to returns, CoinLoan isn’t the highest-yielding P2P platform out there. The average interest is currently around 8% or less.

Lower yields make sense as your investment is protected by collateral, which isn’t the case with many other P2P lending sites that fund payday loans or unsecured consumer loans.

A very positive feature of CoinLoan is the fact that if the borrower repays the loan before half of the loan term, the borrower needs to pay at least 50% of the interest. That’s not the case with most other P2P lending sites.

You should also keep in mind that most of the loans are bullet loans, meaning you will get the repayment at the end of the loan term.

Is CoinLoan Safe?

Now, you are aware of the basics, but is CoinLoan a legit platform?

We have already mentioned that the site’s lack of transparency is a big concern to us. But, let’s have a look at what else we found out when completing our thorough due diligence.

Who Runs the Company?

CoinLoan was founded by Alex Faliushin and Max Sapelov. Alex is also the CEO of CoinLoan while Max is the acting CTO.

According to their LinkedIn profiles, both Alex and Max also own a company called IT Security Group.

We haven’t found more information about the CoinLoan team.

Who owns the platform?

The CoinLoan platform is owned and operated by ExFinance OÜ, and the headquarters are located in Tallinn, Estonia. The company has a European Financial License. Alex Falishin is the sole management board member according to the Estonian business register.

Are There Any Suspicious Terms and Conditions?

As there’s no information about the team behind CoinLoan, you should complete your due diligence by playing closer attention to information we do have access to, like the platform’s terms and conditions.

Clause 5.19: Storage of Funds

CoinLoan doesn’t say how they store and manage investors’ funds in their terms and conditions. This is a standard clause that all investors should expect to see in a platform’s terms, so it’s concerning that CoinLoan does not provide this information.

coinloan terms

When sending money to CoinLoan, your funds are stored at a Bilderlings account. It’s worth noting that Bilderings is not a bank, but an electronic money institution.

Clause 13.2: Liability

Although one of CoinLoan’s products is called an ‘interest account’, your funds aren’t covered by any insurance and by investing on CoinLoan your investment is exposed to certain risks.

coinloan terms

As CoinLoan clearly says in their Terms and Conditions, your investments aren’t insured by any jurisdiction.

In the worst-case scenario, you can lose all of your investments, but that’s the case with any P2P lending site.

Clause 12: Amendments

Possibly the most concerning clause: CoinLoan reserves the right to amend its terms anytime without prior notice.

coinloan amendments

This puts your investments at risk. If you’ve been reading our other P2P lending reviews, you know by now that this is no-go for us.

Do Investors Have Access To Individual Loan Agreements?

Investors do have access to individual loan agreements under ‘My Loans’ and navigate to the tab ‘Lending’.

Potential Red Flags

So far, just by having a quick browse of the terms and conditions and a look on the website, we’ve identified the following red flags:

  • Terms and Conditions can be changed at any time without prior notice
  • No information about the team behind the platform
  • None of the essential statistics have been provided
Learn more about possible red flags here.

What’s Our Opinion of CoinLoan?

The product itself is a suitable alternative to other investment opportunities found on other European P2P lending platforms.

Investing in secured assets is always ‘more’ secure’ than investing in unsecured payday loans. When investing on CoinLoan, you will need to accept the lower interest rates.

And, in fact, the actual interest is around 8% per year, which is even less than on platforms like Debitum Network which is much more transparent.

No Demand for Capital

The lack of transparency around CoinLoan is a big concern to us and even though we have tested the platform, we weren’t able to invest as there’s not as much demand from the borrowers.

After a few weeks of uninvested capital, we decided to withdraw our funds.

While the product offering seems promising, the lack of demand for loans at higher interest as 10% as well as the mentioned transparency concerns are points you should keep in mind when considering making money with CoinLoan.

Usability of CoinLoan

If you have invested on platforms like EstateGuru or PeerBerrybefore, investing on CoinLoan comes with a steep learning curve.

The platform’s interface looks very different to that of other P2P lending sites.

coinloan dashboard

Here’s a sneak peek into CoinLoan’s interface.

As you can tell, the menu looks very different to other P2P platforms.

In order to get started with investing on CoinLoan, you need to first deposit money.

You can choose from a variety of cryptocurrencies or fiat currencies like EUR, USD, GBP and RUB (we have only tested deposits in EUR).

coinloan wallet

You should know that CoinLoan offers the same interface for borrowers as well as investors (lenders).

You can, therefore, use all the functions for both user-types. This can be quite confusing if you’re just starting out with CoinLoan.

After you have deposited funds to your account, you can start investing.

There are two options for you to choose from:

  1. Interest account
  2. Lending market

CoinLoan’s Interest Account

CoinLoan’s interest account is comparable to Bondora’s Go and Grow or Mintos’ Auto Invest. The difference, however, is that with CoinLoan’s interest account, you can withdraw your money at any time, while with Bondora and Mintos, this is subject to the market situation.

coinloan interest account

You can activate your CoinLoan interest account in the currency you choose to deposit on the platform.

If you deposit Euros, you can activate the interest account in Euros and earn an annual interest of 8.3%.

Lending Market

The other way you can invest in loans on CoinLoan is by creating a loan offer.

coinloan loan offer
  1. You basically define your own loan criteria and wait until a borrower accepts your offer.
  2. The borrower sends their crypto-assets to CoinLoan and the platform transfers your money to the borrower.

This only works if there’s a borrower that agrees with your terms, particularly the interest, as, of course, you won’t be the only one offering money to borrowers.

The borrower will always go with the cheapest option, which is why you should first look at the current supply.

If someone offers a loan for 8%, it’s unlikely that you would be able to offer anything above that.

coinloan lending market

The platform doesn’t perform credit checks on the borrower, the only security you have is the collateral and the faith in CoinLoan to protect your money.

We have tested this feature and we weren’t able to find a borrower. You will probably need to invest a higher amount of money to make your offer more appealing.

When it comes to usability, CoinLoan isn’t very beginner-friendly and, if you haven’t been exposed to cryptocurrencies before, you might find yourself confused.

An irritating feature on CoinLoan is the 2FA, as, after only a few minutes of inactivity, users are logged out and

In order to log in again, need the 2FA code. Needless to say, this level of security, while well-intentioned, isn’t very user-friendly.

How Fast Can You Withdraw Your Money?

Are you wondering how long it takes to withdraw your investments?

If using the interest account, you should be able to withdraw your investments immediately, although we haven’t tested this feature.

If you’re using the lending market, it will take you as long as the duration of the loan that you have funded.

There’s no buyback option or secondary market.

The only way to withdraw your money earlier is to hope that the borrower will repay their debt before the loan term or their collateral gets sold and you recieve your money back.

Support

CoinLoan’s customer support is generally very responsive when it comes to handling verification and registration issues.

It’s worth mentioning that CoinLoan’s blog posts are informative and certainly provide higher value than most of the blog posts from other P2P lending sites like Wisefund, Lendermarket and Robocash.

When it comes to answering our questions, CoinLoan never responded to our emails, which left us feeling wary of their services.

When trying to find the answers to our questions online, we researched what other users have said about CoinLoan, and were unable to find a one single source that could address our questions.

CoinLoan Review Summary

CoinLoan could be suitable for advanced investors that understand all the aspects of P2P lending and are familiar with cryptocurrencies. The real return on CoinLoan is much lower than other platforms, however, unfortunately, we cannot say the same about the risk since the platform lacks transparency.

Key Takeaways From Our CoinLoan Review

  • One of the least transparent platforms we’ve reviewed
  • Unsuitable for beginners
  • Investments are secured with cryptocurrencies
  • Users will face cash drag

If you don’t mind the above-mentioned points and trust CoinLoan’s management to do a good job when it comes to protecting your investments, you can give the platform a try and see for yourself whether CoinLoan is a good fit for you.

Not conviced by CoinLoan? Check out other P2P lending sites.

FAQ

Does CoinLoan offer a buyback guarantee?

CoinLoan does not offer a buyback guarantee as investments are secured by crypto-assets.

What kind of loans do investors invest in on CoinLoan?

CoinLoan doesn’t reveal any data about the borrower, loan-type or country origin of the loans investors fund.

How does CoinLoan guarantee returns?

Investments on CoinLoan are secured by crypto-assets. If the value of those assets drop, CoinLoan will liquidate them and pay investors back.

Is there a secondary market on CoinLoan?

There is no secondary market on CoinLoan; users can only withdraw money before the end of the loan term by using the CoinLoan’s interest account.

Company Information
Company:EXFinance OÜ
Address:Narva mnt 7-634, Tallinn, 10117, Estonia
Phone:+372 634 6411
Email:support@coinloan.io
Live Chat:No
Opening Hours:Weekdays from 9AM to 5PM
Social Media:Facebook, Twitter, LinkedIn, Telegram