Cryptocurrency investors tend to buy digital assets at low prices and hold them for longer periods to benefit from a potential price growth. However, price increases are not guaranteed. For example, the crypto market, led by Bitcoin, ended 2018 in red, losing over 70%. We at VELIC don’t want to argue against investing in digital coins. On the contrary, VELIC offers lucrative crypto investment products, but sometimes crypto holders need fiat or liquid digital money to make a purchase or start a business. One of the most common options to address such needs is to get a bank loan, but the bank loan conditions are often complicated, expensive and time consuming.

VELIC can provide its users with loans backed by digital assets. Thus, VELIC members can use part of their cryptocurrency balance as collateral and conveniently apply for loans on the VELIC platform.

VELIC is open to provide its loans to individuals who need funds to start a small business, reinvest the funds in digital assets or make a purchase. Initially, users will be able to collateralize Bitcoin and Ethereum, with more cryptocurrencies to be added soon. VELIC also intend to accept as collateral various other asset management products VELIC offers as well as other forms of tokenized assets. The loans will be made in stable coins — such as VELIC’s own VELD or Tether’s USDT — or in fiat currencies where possible.

How to Apply for VELIC Loan?

Loans represent one of the key services provided by VELIC, along with asset management and vault services. Prior to becoming eligible to borrow funds on the VELIC platform, users have to pass through KYC/AML verification procedures. Existing VELIC users who have completed KYC/AML verification with respect to other VELIC services will not need to repeat, as all of VELIC’s services are offered under a single integrated account. The whole loan process is simple and involves just a few steps:

- Insert desired loan amount and apply on the VELIC loan page;

- Review and consent to the loan agreement provisions;

- VELIC will automatically debit the collateralized assets and provide the loans into your VELIC account.

Why VELIC Loan?

The fact that the loan service and the VELIC crypto exchange are available within the same ecosystem to enable users to enjoy more convenience, as they can move the funds back and forth much faster.

While crypto-based loans are not a novelty anymore, VELIC will manage to stay competitive by ensuring seamless user experience and quick loan process.

1.Hassle free VELIC Loan-Instant Crypto-backed Loan Service

1) The borrower can apply for a loan during the transaction through the VELIC Exchange and receive the loan in real time, so users are instantly approved the loan amount, and then the loan amount is deposited in the borrower’s wallet the same day of applying for it.

2) This will reduce the time and procedures applying for a loan, and the borrower can immediately use the received loan for various services in the VELIC platform, such as exchanges and asset management.

3) There is an advantage of being able to eliminate inconvenience that should be used after transferring money to other wallets.

2. Low-Interest Rate with VELT

Users will also find VELIC loan options attractive thanks to its preferential interest rates and automated interest payment mechanism. While interest can be paid in any crypto assets, including Bitcoin, users will enjoy lower interest rates if VELT tokens are used to pay interest. In addition, if VELT tokens are used, then users can also elect to have VELIC automatically process its periodic interest payments so that users won’t have to worry about missing such payments.

3. Margin Call Notifications

Margin call is another essential feature which gives users a chance to remedy the declining value of the posted collateral before they are liquidated due to value fluctuation. It is triggered when the value of collateral declines below a predetermined level. In this case, the user will have to transfer more collateral or make a partial repayment to adjust the loan to value (LTV) ratio. Margin Call Notifications will be sent through email, SMS or App Push to the user so that the borrower can receive timely notification to add collateral or prepay loans.

VELIC has unique advantages compared to the current existing loan service and plans to launch the service in the second quarter of 2019.