Previously, only borrowers could have published loan applications on Biterest. They have had to complete the form with the loan terms, indicating the loan amount, annual interest rate, loan period, and then pay a commission for submitting a loan application on the platform. Therefore, the lender has had to accept the borrower's needs if they wanted to issue a loan. The borrower, in turn, has had to wait several hours before the application would be accepted by a lender. If the loan terms in the application were not suitable for any of the lenders, then the loan deal might not take place at all.
Now borrowers are able to get instant loans through lenders' offers in 3 simple steps and without any commission! In the new update, we have added a new feature for lenders to publish loan offers. It makes possible to receive loans as quickly as possible.
How to get an instant loan? Click the Apply for a loan tab and select the lender who suggests the most appropriate loan conditions. The borrowers don’t pay any commission for getting a loan by appealing to the lender’s offers. They do not need to top up the account balance to use the platform for this type of lending, only choose the lender's offer and transfer the necessary amount of collateral.
Each lender’s offer includes:
- a time during which the lender must transfer the funds to the borrower
- a range of the loan amount
- possible terms of the loan period
- annual interest rate
- a minimum percent of the discount
- all possible loan transfer methods
The lender undertakes to transfer the loan amount within the prescribed period which they have indicated in their loan offer. The failure to comply with the deadlines is strictly controlled by the Biterest administration. If the lender does not fulfil the obligations, their account will be frozen for a certain period, the Biterest’s keys for the collateral will be transferred to the borrower. At the moment, this feature is in beta testing mode, so contact the Biterest Support if you want to submit the offer.
If none of the available loans offers from lenders interests the borrower, the borrower can submit their own loan application in the old way. To publish a loan application, a borrower has to pay Biterest commission (0,5% of the annual interest rate). It will appear in the Lend tab among the other borrowers' loan applications.
Also, there are changes affected the loan currencies. Biterest is the platform available to users all over the world. Therefore, the loan issuing amount and repayment amount now are fixed in the US dollar (USD) currency. However, it does not mean that you can receive and transfer loans only in dollars or use payment systems that support only dollar accounts. If users can accept or issue loans in other currencies, they can indicate them in the Available currencies field. If you select an issuing currency other than the US dollar, Biterest will recalculate the amount in dollars to your national currency at the current exchange rate. However, the final loan amount and repayment amount may vary if the currency rate changes to the USD. This change does not apply to loans with active loan periods.
Why we have made the change with currencies for? Previously, users were required to set their national currency while creating a loan application. Initially, it seemed to us as a good idea which could have given our users more opportunities. Actually, it has created a significant limitation. Users from different countries do not understand each other well. The lender from Norway had a simple opportunity to issue a loan the borrower from Belarus, but in fact, the issuance of money was difficult for them. For example, the lenders from Western Europe are poorly aware of the Ukrainian hryvnia or the Kenyan shilling exchange rates, their dynamics to the main world currencies, risks and opportunities. They do not understand 15% per annum for these currencies is a lot or not.
At the same time, all the users perfectly understand what the US dollar is. This is the main world currency, so everyone knows the exchange rate of their national currency to the USD. The surveys show that it is much easier for users to perceive the rate of Bitcoin against the dollar than to their national currency. In this way, we erase the boundaries between our users. The most important consequence of the new update is that lenders from regions with low deposit rates can easily and safely cooperate with borrowers from regions with high lending rates.Tweet