29 articles in this collection
As part of LZ Lending's Know-Your-Customer, Anti-Money Laundering & Suitability requirements, a verified identification document may be required. We recommend uploading a photograph of your valid passport, driving license or another government-issued document.
LZ Lending is committed to keeping any or all personal information collected of those individuals that visit our website and make use of our platform accurate, confidential, secure and private. As a part of our business, we are required to verify the identity of members who apply for a financial product through our platform.
To start borrowing on LZ Lending, all you need is a collateral asset to secure your loan. You can never borrow more than the value of your collateral.
Further, you’ll need to complete KYC verification. It’s a fully automatic process that takes only a couple of minutes.
It's a common thing in asset-backed lending to secure your cryptocurrency loan with higher-value collateral (over-collateralization). A ratio of the amount of loan against the market value of the asset is a Loan-to-Value ratio (LTV).
On LZ Lending, a borrower can set up an LTV ratio in the range from 5% to 70%. Lower LTV ratio increases the chances of loan approval and lowers interest rates. In case of a market fall, your crypto isn't likely to be liquidated to secure the lender's investment. Higher LTV means that borrower will have to act rapidly in case of a terrific market situation. The good news is that LZ Lending won't give you a chance to miss out on this.Formula to calculate LTV:
LTV = (Loan Amount) / (Collateral Value)
With a principal & interest loan, the borrower pays back the interest that he is paying an equivalent amount monthly until the loan matures. Early in the amortization schedule, a majority of the payment will be going towards the interest and later within the schedule; it'll go towards the principal of the loan.
With an interest-only loan, the borrower pays back the interest in the loan first. For example, in a 1-year loan, the borrower would pay only the interest of the loan for 11 payments with 1 balloon payment due for the interest and principal of the loan at the end of the loan when the loan matures.
Your most basic cryptocurrency loan questions and curiosities explained
For many, the idea of cryptocurrency is intriguing – but very confusing. While there are millions of excited and interested individuals looking to build their wealth through blockchain and cryptocurrency investment, the initial learning curve can seem daunting. While many beginners feel intimidated and uncomfortable asking questions about the basics of cryptocurrency, we feel that truly understanding the process and the safety of the product will help ease the minds of those wondering about the currency of the future. As an innovative cryptocurrency lending platform, we often receive many questions about the process and the safety of the products. In this article, we will address three of the largest questions we receive at LZ Lending. Our goal is to help ease minds, calm fears, and help open the door to financial growth and freedom for millions of individuals throughout the world.
Frankly, we have the most robust security protocols, most in-depth storage system, and well-respected reputations in the industry. LZ Lending has become a cryptocurrency lending and funding platform giant for a reason – we take our reputation, security, and our clients needs incredibly seriously. Our entire platform is based on trust, expertise, and reputation – and at LZ Lending, we will do nothing to sully our good name, and with the added security of $150 million dollar insurance from Ledger Vault, our clients can rest assured that the LZ Lending team is taking all the necessary steps to earn and keep your trust.
At the end of the day, our true goal is to offer exceptional services for our clients cryptoassets, all while helping to grow the economy of the future through secure lending and borrowing between interested investors and business leaders. LZ Lending is committed to offering secure cryptocurrency and blockchain services that will help grow wealth and lead the financial revolution of the future.