Topic: <<||coinjack's LTL - Long term lending / only 50% collateral||>> (Read 423 times)

Introducing the very new way of lending...


When it comes to lending, there are several difficulties that have to be solved by lender as well as borrower.
One of the biggest problems is the collateral. Many can't offer the 120% of the requested loan amount - how could they when they apply for a loan? It's like going to a bank and saying "Here you have 1200$, please give me 1000$ back and i pay you interest every month!"

So, i tried to figure out how to fill a loan request without getting the full amount as a collateral from the borrower and here is what came to my mind:

The loan amount will be divided and released in parts. Interest is fixed at 1% weekly and also has to be paid weekly! Additionally, a percentage of the loan amount has to be repaid every week.

When i decide to fill your loan request, you will not get the full amount all at once. You will get 60% of the demanded loan amount right from the start, the remaining 40% will be released after 3 successfull payments of interests. This sounds complicated so i will give you an example:

Mister X wants to apply for a loan.

Loan amount: 0.1 BTC
Loan duration: 3 months (= 12 weeks)
Collateral: Litecoin

Mister X will have to send Litecoin worth 0.05 BTC (only 50% of the loan amount!) as a collateral.
After receiving collateral, Mister X will get 0.06 BTC from me.
One week later, repayment begins.

Since interest is fixed at 1%, Mister X will have to pay 0.001 BTC + 0.0083 BTC (1/12 of the loan amount) after every week.
When 3 weeks have passed and interest has been paid regulary and without delay, the remaining 40% of the loan amount - in this example 0.04 BTC - will be released.

Of course, there's still some risk remaining for me, since i only got back 78% of the loan amount after 3 weeks. But, i am sure that people that were willing to pay interest 3 times, are also willing to pay back the whole loan amount. For my security, i will tag everyone who gets a loan from me until repayment is fullfilled.

I reserve the right to reject any request. Higher ranks here on the forum are a plus but not a must.
Collateral can be held by a reputable escrow from the forum if you wish - you will take the fees.
No collateral, no loan.

Minimum loan duration: 6 weeks
Maximum loan duration: 6 months
Maximum loan amount: 0.3 BTC

This topic will be locked to avoid spam - every accepted loan will be posted here for reference. Loan requests via PM first.