How to Apply for a Crypto-Backed Loan
Celsius Network is a powerful CeFi platform that allows users to take out collateralized loans. The process of applying for a Celsius crypto-backed loan is both easy and efficient.
If you are looking for info about Celsius crypto loans, click here. If you are looking for a step-by-step guide on how to apply for a crypto-backed loan, read below:
There are 4 steps involved with applying for a crypto-backed loan, currently available only on the Celsius mobile app (not the web app):
- Enter the amount you want to borrow (fiat or stablecoin). The minimum loan for stablecoins is $100 USD worth (reduced from $500 USD minimum on Sept 24th, 2021). The minimum for fiat is now $15,000 USD (reduced from $50,000 USD on Sept 24, 2021).
- Select the collateral and the interest rate (from current portfolio or new deposit).
- Choose a term length (between 6 months to 3 years).
- Confirm and await approval.
At Step 3, you must choose the term length (6 months to 3 years). The application will show you the:
- exact interest costs over the loan term,
- annual interest rate
- monthly interest payments
- total interest payments
- # of payments
- margin call price (changes with asset price at the time of application)
- liquidation price (changes with asset price at the time of application)
* both margin call and liquidation price in below screenshots were based on BTC price at $31,500 USD.
Please note that borrowers can do 3 other things with their crypto-backed loans:
- pay back the loan at anytime without penalty (within the mobile app or through the Loans department).
- extend the loan with the same loan terms without penalty (within the mobile app or through the Loans department).
- request a ‘Reverse Margin Call’ against their Celsius crypto-backed loan if their collateral (asset) has appreciated and they want to ‘unlock’ the collateral so that they can earn reward interest again. There are no fees but borrowers must do this through the Loans department.
Celsius Loan Minimums
As of September 24th, 2021, Celsius Network has reduced their loan minimums to the following:
- Minimum of $100 USD for stablecoin loans
- Minimum of $15,000 USD for fiat loans