News from CoinLoan – Nov 2019

As you might have gathered from my videos or previous articles, CoinLoan is one of my favorite p2p platforms. It is still small but keeps growing continuously and is adding new features step by step. Let’s check out the news from CoinLoan in detail.

In case you have no clue what CoinLoan is, check out my review article first.

Change in early loan repayment policy

Until now, borrowers could repay a loan at any time without any penalty. This sounds reasonable but apparently CoinLoan received some complaints about lost interest earnings due to early loan repayment. I suspect this came from lenders with large loan volumes.

The new rule for early repayment is as shown in the screenshot below. Borrowers now have to pay at least 50% of the interest for the entire loan duration in any case. If they repay the loan before half of the loan duration has passed, they need to pay in total 50% the originally agreed interest. If they repay the loan after half of the loan duration, they have already paid at least 50% of the interest. In this case, no additional penalty needs to be paid.

For short term loans up to 1 month duration, the full interest needs to be paid in any case.

coinloan early payment
New rules for early loan repayment on CoinLoan.

Too be honest, I find this a bit too much at the disadvantage of the borrower. Let’s see if the rule stays as it is or if it changes as time passes.

Interest Account

CoinLoan has introduced a feature similar to Bondora’s Go&Grow or Mintos’ Invest&Access. CoinLoan calls their hassle-free investment tool Interest Account. The concept is very simple: investors deposit stable coins like USD Tether (USDT) or USD Coin (USDC) in their CoinLoan wallet. CoinLoan will use these funds to issue loans and pays a fixed interest rate of 8% to the investor.

Interest is paid daily and funds can be withdrawn from the Interest Account at any time. The current withdrawal fee is 2 € which I expect to decrease over time as more and more investors join. For investors who regularly want to withdraw their earned interest this might not be so attractive right now. For everyone else this fee hardly plays a role, I think.

coinloan interest account
CoinLoan’s new Interest Account. At the time of writing, three stable coins can be deposited for investment.

The so-called stable coins are crypto currencies whose value is directly linked to a fiat currency like the USD. This takes the unwanted strong fluctuations out of the crypto currency and makes it more predictable.

In the near future, CoinLoan will add the EUR stable coin EURS to the Interest Account. This will make this feature more attractive also for investors from Europe.

Stable coins can be bought directly at CoinLoan’s currency exchange or (for often better rates) at crypto marketplaces like binance or coinbase.

Better User Interface

The user interface has been cleaned up and became much more accessible. It is now easier to find and filter important information like the list of active and repaid loans. In the My Loans section you can now switch between grid and list view and filter your loans.

CoinLoan list view
List view of my active loans on CoinLoan. This view and the filter options are much better than the old interface.

In addition, CoinLoan is going multilingual and translated their landing page into German, Spanish and Chinese. This also shows in which markets they are particularly active. I expect that a fully translated user interface comes online soon in these languages.

Summary

So, all in all, CoinLoan is offering a more attractive investment opportunity with the recent upgrade. The early repayment policy works in favor of investors. The Interest Account is attractive for everyone who does not want to spend time with creating loan offers but still wants a decent return on investment. Last not least, the improved user interface with additional languages makes it easier to use the platform.

Good news from CoinLoan!

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