If you have invested in Bitcoin, you can use it to secure a loan through Ledn. Ledn is a Canadian company that provides a number of financial services in the crypto industry. It allows investors to leverage their cryptocurrency to earn interest on savings accounts and to access cash through loans.
Ledn offers two main loan products, both of which are secured by your bitcoin.
Ledn’s Bitcoin-backed loans (aka Dollar Loans), are loans secured by bitcoin. You can borrow loans in CAD, USD, USDC, or your local currency. You can borrow up to 50% of your bitcoin value, which will be held in a unique wallet until your loan is repaid.
No credit checks are required and approval is provided within 24 hours. Funding will then be provided in 24 to 48 hours after you deposit your bitcoin as collateral.
One of the main services that Ledn advertises is their B2X loan program, which allows you to improve the state of your bitcoin holdings with a loan that is secured against them. In this case, you would use the loan to purchase a sum of bitcoin that’s equal to your original holdings, thereby leaving you with twice as much cryptocurrency.
| Bitcoin-backed Loans | B2X | |
| Description | Borrow up to 50% of your Bitcoin value. | Purchase Bitcoin up to 50% of your Bitcoin value. |
| Interest Rate | 7.9% | 7.9% |
| Fees | 2% | 2% |
| APR | 9.9% | 9.9% |
| LTV | 50% loan-to-value ratio | 50% loan-to-value ratio |
| Loan Term | 12 months | 12 months |
| Repayment | – No monthly payments required – No prepayment penalties – Loan due at maturity | – No monthly payments required – No prepayment penalties – Loan due at maturity |
Ledn has a flexible loan structure where you’re allowed to repay the loan principal, interest and fees at the end of the loan term. No monthly payments are required, though you’re free to make payments to reduce your loan amount. In fact, you can prepay the entire loan amount at any point without penalty.
As previously mentioned, Ledn forgoes the traditional credit check portion of the approval process, so the only thing you’ll need to do is fill out their online application, submit it, and wait for approval. Applicants will, of course, also need to have bitcoin to use as collateral for the loan.
Unlike traditional lenders in Canada, Ledn deals in bitcoin-based financing, which has a slightly different approval process than most regular loan products. According to their website, their requirements are very quite minimal. In fact, all you need to do is fill out one of their online applications and provide standard proof of your identity.
Step 1. Create An Account – To apply for a bitcoin-backed loan with Ledn, you’ll first need to create an account with them.
Step 2. Apply For Loan – Once you’ve created an account, go to the dashboard screen and apply for a loan by selecting “Borrow” and then “Apply for Loan Instantly”. You’ll need to fill out the application with the appropriate information.
You may be required to provide various pieces of personal and financial information, including but not limited to your:
Step 3. Submit Application – Once your application is submitted, it can take 24 hours before you receive approval.
Step 4. Get Funded – If you’re approved, you’ll receive an email with instructions on where to deposit your bitcoin (collateral). Once your deposit is received, Ledn will fund the loan within 24-48 hours.
Although bitcoin loans are somewhat different than traditional loans, they serve the same purpose, in that you can use your funds to acquire various commodities. However, these kinds of services don’t come free and, like any other lender, Ledn charges certain fees and interest rates.
| Bitcoin-backed Loans | B2X | |
| Interest Rate | 7.9% | 7.9% |
| Fees | 2% | 2% |
| APR | 9.9% | 9.9% |
| Term | 12 months | 12 months |
Ledn does not charge any prepayment penalties. You are free to repay the loan at any time. No monthly payments are required until maturity, at which point the entire loan amount will be due, plus interest and fees.
Here is a short list that details the overall benefits and drawbacks of applying for one of Ledn’s loans.
When you get your loan with Ledn, your bitcoin holdings will be stored in a separate account known as a “segregated wallet”. Unfortunately, the balance you hold can decrease if your cryptocurrency drops in value during your repayment plan. Ledn will then ask you to deposit extra funds into your wallet to offset your primary loan balance.
In other words, you are still responsible for your loan payments, regardless of whether your bitcoin holdings increase or decrease over time.
While many borrowers may find the idea of a bitcoin-based loan confusing, it essentially involves getting a loan that is secured by the value of your bitcoin. You can then repay your loan through monthly installments or fully at maturity, after which your bitcoin will be released as collateral.
If you have bitcoin and are looking for a loan, you can easily secure one through Ledn.
Loan Range | Rate & Terms | Product Details | Eligibility | Requirements & Documents | |
|---|---|---|---|---|---|
Bitcoin-Backed Loan | $500 - $1,000,000 |
|
| Must provide proof of identity |
They have good products for crypto, I have a year with my account, I highly recommend them.
Everything seems legit. Ledn is also backed by YouTuber Datadash which makes me biased since I trust him almost blindly. But great service, they answe... read more
I like these guys, good customer service got all my questions answered. Cool crypto products.
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