What kind of digital asset can be used as collateral?
Initially only domain names and web sites.
Can I lend money from someone in another country?
Our broad network of lenders offer services to parties in all countries allowing peer to peer lending.
What kind of loans can you request?
Loans must match these requirements, so lenders just have to suggest the amount of cash they lend, interest and maximum term:
Type of loan: Interest only.
Term: 3 months minimum.
Amount: $5,000 minimum.
Payment of interest: monthly or quarterly (if accepted by the lender).
Supported payment: Paypal, credit card or wire.
Possibility to accelerate the loan after 3 months at no additionnal cost.
Check the simulator. For example if it's a $20,000.00 loan with a 18 months term and the annual interest rate is 20% then the total interest to pay will be $6,000.00 and the quarterly payment would be $1,500.00
How much does it cost?
First remember you must be a registered member and be signed in to watch, respond and request loans.
- Request a loan is free.
- Watch loan requests requires a Premium Membership ($90 single time fee)
- A $100 winning fee (borrower connected with a lender) is due by the lender.
- Escrow fees (in average 1% of loan + $300/year) to secure the transaction are due by the borrower. Some professional lenders may propose their own escrow service, in this case they must outline it in the comment section so borrowers may better compare offers.
What is the interest rate of the loans you provide?
Each lender will propose his own rate, they will compete to get your business.
For information, 25% is the average annual interest rate those providing loans secured by digital collaterals have been charging these recent past years.
What is the loan process?
Once a borrower has decided to accept the loan offer from a lender an escrow transaction will be created where fees are due by the borrower (can be deducted from lender loan payment).
This is how the loan process will be secured by an escrow company:
The transaction is secure because collateral digital assets are put under escrow ownership while the transation is not completed:
Lender will pay to the escrow company the loan amount, plus escrow fees and 1% winning fee.
Borrower will put his collateral digital assets under escrow ownership.
Escrow will pay borrower the loan amount minus escrow fees.
Escrow will pay the 1% winning fee to Lend.me
After the first 3 months the borrower will start paying each quarter the loan interest.
Escrow will pay quarterly the interests to the lender minus escrow fees.
At loan term the borrower will pay the remaining loan balance to escrow minus escrow fee.
Escrow will pay the lender and will send back the digital collateral to the borrower.
If at anytime an invoice is not paid in time by the borrower then the loan is cancelled:
The borrower will lose the money paid and the escrow will transfer his digital collateral asset to the lender.