BlockFi’s lending product is fairly simple!
You post one of the accepted cryptocurrencies (BTC, ETH, LTC or PAXG) as collateral, and
can borrow USD or stablecoins (USDC, GUSD, or PAX) against it. At this time BlockFi offers the
ability to borrow up to 50% of the value of your assets. Utilizing our lending product is a great
and innovative way to unlock capital without having to sell your assets and incur a taxable
event. The amount of USD you can borrow depends on the amount of collateral you’re able to
post against a loan, and originating LTV (loan-to-value ratio) that you choose. All loans are
structured as 12 month, interest-only loans and are assessed an origination fee of 2% which is
due when the loan is repaid in full. If applicable, the origination fee will be included in your payoff
balance to ensure that the closing of your loan is quick and seamless.
Please see the example below for a U.S./Domestic client who is borrowing the loan minimum of $10,000.00 in funds:
- 50% LTV @ 9.75% Interest rate requires ~$20k in crypto as collateral
- 35% LTV @ 7.9% Interest rate requires ~$29k in crypto as collateral
- 20% LTV @ 4.5% Interest rate requires ~$50k in crypto as collateral1
Please note that ALL retail loans for domestic borrowers are interest-only, which allows the
borrower to pay only the accrued interest each month. However, borrowers are able to make
partial payments towards loan principal at any time, which will reduce the amount of interest
accrued as the loan matures.
Please see the example below for a Non-U.S. client who is borrowing the loan minimum of $10,000.00 in funds2:
- 50% LTV @ 12.5% Interest rate - requires ~$20k in crypto as collateral
- 35% LTV @ 10.44% Interest rate - requires ~$29k in crypto as collateral
- 20% LTV @ 6.73% Interest rate - requires ~$50k in crypto as collateral1
Please note that loans for non-U.S. clients between $10,000.00 and $49,999.99 are processed as bullet loans which means that monthly interest payments are not required. Instead, the origination fee and any outstanding interest is due at the end of the loan term. International loans of $50,000.00 or more are processed the same as a standard retail loan and will require monthly payments.
Limitations and restrictions may apply. You can view current rates here as they may vary.
1The 20% LTV option is only available for loans collateralized by BTC.
2Interest rates for Non U.S. clients includes our standard origination fee, which reflects in the
interest rate being ~2% higher