Best Crypto Loan Platforms To Take Out Crypto Loans In 2025

Centralized crypto loan platforms are custodial lending institutions. They are operated by a central administration and usually require user verification. Here, we review selected custodial loan platforms that offer cryptocurrency loans;

Binance is the largest cryptocurrency exchange by daily trading volume. Over 300 crypto assets are tradable on the platform’s spot and derivative trading terminals. Binance also offers crypto loans through Binance Loans. The crypto loan platform supports over 150 cryptocurrencies. Users can provide collateral and obtain loans in any of these assets. LTV for most assets supported on the loan platform is 78%, and users can borrow up to $10 Million worth of crypto assets from the platform. Interest on loans can be paid according to a fixed or flexible interest structure, depending on the user’s preference.

Binance Loan offers significantly low interest on loans. Loans in VET (Vechain token) attract an annual interest rate as low as 0.4%. According to the platform, no extra charges or fees are applied to these loans.

Singapore-based crypto asset service provider – crypto.com was founded in 2016 in Hong Kong and has expanded to over 100 countries worldwide. Alongside its crypto spot and derivative trading services, crypto.com also offers crypto loans via its centralized crypto loan platform. Users on the platform can obtain loans in BTC, ETH, USDC, and USDT while providing collateral in several crypto assets such as DOT, VET, LINK, and LTC.

Crypto.com’s loan structure is designed to operate alongside the platform’s native token – CRO. CRO holders get discounted interest rates according to the minimum amount of the token they locked up on the platform. LTV ratio is also flexible, users can increase their LTV ratio by adding more collateral, LTV ratio could be increased to over 70%. Loan duration is up to 12 months.

Nexo describes itself as the premier wealth platform for digital assets, it has over $7 Billion AUM (Asset Under management). The Platform was founded in 2018 and offers several digital asset services. Nexo allows users to trade over 100 crypto assets including Bitcoin, Ethereum, and XRP on its spot and derivative trading platforms. The Nexo platform offers personal and enterprise-grade financial solutions related to digital assets. The Nexo Credit Line is one of its primary digital asset services. Credit Line is a crypto loan solution. It allows users to borrow against their crypto assets.

Over 100 digital assets are accepted as collateral with an LTV (Loan to Value) ratio of up to 50% for Bitcoin and 90% for USDC stablecoins. Other crypto assets like DOT, ATOM, and FTM have an LTV ratio of over 30%. Users can withdraw their loans using stablecoins and supported fiat currencies (USD, EUR, and GBP). The minimum daily withdrawal is $50 for digital assets and $500 for fiat. Nexo Finance is powered by the Nexo token. Users are classified into tiers depending on the ratio of their NEXO token holding. Nexo token Holders enjoy several perks including discounts on interest rates.

Unchained capital is an institutional financial service provider. It offers loans on Bitcoin to US residents. Unchained capital is focused on Bitcoin as a digital asset and provides self-custody services for BTC holders alongside the loan service. Users can obtain up to $150,000 US dollars using their BTC as collateral. The interest rate for BTC loans is 14%, and the total remittance is about 16%, this includes the interest charged and extra platform charges. LTV for BTC loans on unchained capital is 40%. Unchained capital provides a collateral management dashboard for users where they monitor their loan’s health to prevent accidental liquidations. For institutions, Unchained capital can provide up to $3 Million in loans with BTC as collateral.

Bybit is one of the largest cryptocurrency exchanges. The Dubain-based crypto asset trading platform was launched in 2018 and offers spot and derivatives trading for over 600 crypto assets. Bybit also offers crypto loans to users. Registered users of the platform can obtain up to $16 Million worth of loans in over 150 crypto assets including stablecoins. Bybit offers up to 80% LTV. Loans obtained on the platform can be used for spot and derivative trading on the Bybit exchange or withdrawn to the user’s wallet. The collateral asset is held by the platform while the user services their loan interests as agreed. Bybit offers Fixed and Flexible interest loans with a duration of up to 180 days.

Decentralized crypto loan platforms are money markets built on decentralized networks, they are automated using smart contracts and therefore operate without a middle-man or central admin. Decentralized crypto loan platforms are usually algorithmic, platform operations are guided by preset rules encoded in the underlying smart contract. Here we review selected decentralized crypto loan protocols for individuals and institutions.

Aave is one of the best Defi lending platforms that excels at crypto loans. It offers lending services for crypto assets and real-world assets (RWA) like real estate, cargo, and payment advancements. Aave partners with Centrifuge, an on-chain ecosystem for structured credit. Aave protocol is deployed on the Fantom Opera chain, Avalanche and Polygon networks, and Ethereum layer-2 networks Arbitrum and Optimism. It operates an open liquidity system that allows anyone can contribute to the protocol’s lending pool, and take loans from the pool. The liquidity system powers its decentralized lending protocols. It offers cryptocurrency and mainstream investors an avenue to access loan facilities without having to go through third parties.

Aave protocol operates a smart contract that defines the collateral, lending, repayment, and interest system for every loan operated through its platform. Aave operates an overcollateralized loan system. This means that to borrow an asset from the Aave lending pool; the borrower must provide collateral higher in value than the asset they wish to borrow. Aave also offers crypto flash loans

Alchemix is a multichain decentralized crypto loan protocol with a unique self-repaying feature. It uses a staking-based model to gradually pay off user’s loans. Users can obtain loans in their collateral assets while the platform handles repayment. Alchemix’s approach to loan repayments also means that users do not have to worry about liquidation, interest payment, and other extra procedures associated with loans on centralized and decentralized crypto loan platforms. Assets supported as collateral include USDC, ETH, DAI, and liquid-staked ETH, LTV for each asset is 50%. That is, users can borrow up to half of their deposited assets. The interest rate on Alchemix is 10%. Alchemix protocol uses synthetic yield-bearing assets (known as AlAssets).

Alchemix protocol is powered by the ALCX token. ALCX doubles as the governance and incentive token on the platform. Holders are part of the ALchemix DAO and vote on improvement proposals. Promotional rewards for interacting with the project and platform are also paid in ALCX.

According to data from the platform, over $155 Million worth of crypto loans have been obtained from Save Finance. Save Finance recently rebranded from Solend and has maintained its decentralized loan service. It is a permissionless money market on the Solana blockchain, offering lenders passive income and borrowers, an on-demand liquidity. Borrowers are expected to pay regular interest and service their loans to avoid liquidation. At the time of writing, over 120 crypto assets including SOL, JUP, and PYTH are supported on Save Finance. LTV ratio and interest rates vary according to the asset. LTV ratio could be as high as 70% for stablecoins and below 60% for selected assets. Interest rates could also be up to 28%.

Core operations on Save finance such as asset custody, loan allocation, and liquidations are managed by smart contracts. Save Finance is powered by SAVE – the platform’s native token. SAVE is used for platform governance and user incentives.

Compound Finance is a multichain EVM-compatible decentralized lending protocol. It allows anyone to lend their assets or obtain crypto loans by interacting with its smart contracts. Compound Finance is available on Ethereum, Polygon, Arbitrum, Scroll, and Optimism networks. About 7 crypto assets including stablecoins and BTC are supported on the platform. Compound Finance offers variable interest rates depending on the utilization rate (percentage of assets borrowed) of the pool. Borrow APR could be as high as 28%. Compound Finance offers users an opportunity to earn passive income on their assets by committing them to the pool. Loans on the platform are overcollateralized, that is, users borrow less than the value of their collateral. When adjusted using the LTV system, the LTV ratio on Compound finance is 60% to 85%.

Compound Finance is powered by the COMP token. COMP is used in the platform’s governance and user incentives. According to data from the platform, over $970 Million worth of crypto loans have been obtained from the platform at the time of writing.

Maple Finance is an enterprise-focused multichain money market on the Solana and Ethereum blockchains. It provides credit services for crypto-native and mainstream institutions. It connects vetted lenders and borrowers and offers up to 15% in interest to lenders. Maple Finance applies recommended financial compliance and client credit assessment practices in synergy with blockchain and smart contract technology to develop a platform that enables clients to enjoy on-demand liquidity in crypto assets and RWA tokens. Maple Finance offers overcollateralized loans to institutions through a combination of off-chain and on-chain procedures. From the several lending and borrowing options on the platform, institutional clients and lenders are given the freedom to select a service option that works best for them.

Syrup.fi is the decentralized crypto loan arm of Maple Finance. It is a multichain decentralized lending market powered by Maple Finance. Syrup Finance enables users to obtain loans via a self-custody protocol. It utilizes resources from Maple Finance to boost liquidity and improve user experience on the platform. Maple Finance is powered by SYRUP Token. SYRUP is used in platform governance and user incentives.

Here are the details on most prominent types of crypto loans:

Collateralized Loans

These are the backbone of the crypto lending landscape, requiring borrowers to offer assets as collateral. The collateral serves as a security net, protecting lenders from defaults. Lending platforms carefully monitor collateral values against loan balances and proceed with liquidation processes if necessary to mitigate risks.

Crypto Loans Without Collateral (Flash Loans)

Enabled by smart contracts, users obtain and repay funds within a single blockchain transaction. Their introduction has democratized access to quick capital. This opens doors to innovative trading strategies like arbitrage and fueling DeFi exploits.

Margin Trading Loans

Some lending platforms offer margin trading loans. This empowers users to borrow against their holdings for enhanced trading capabilities. Margin trading introduces heightened risks, as losses can trigger liquidation where collateral is sold off to cover losses. These loans come in two primary forms as follows:

1. Cross-margin loans – They utilize a variety of assets as collateral, providing flexibility and higher borrowing limits.
2. Isolated margin loans – They rely on a single asset.

Here are the key factors to consider while choosing a lending platform:   

• Regulation and Security: In the crypto industry, security is key. Thus, it is best to look for platforms with fund insurance. It is also advised to check if the platform is regulated by valid authorities in its operating countries. This helps avoid potential issues.
• Coin vs. Platform: It is essential to explore different platforms so that you can find the ones offering significantly higher Annual Percentage Yield (APY) for the specific coin you plan to deposit.
• Interest Rates: Some platforms may offer higher interest rates that vary based on the amount of locked funds for an extended period. Since it is an added charge over the principal, it must be considered while considering crypto lending.
• Deposit Limits and Fees: Consider minimum deposit amounts and fees to enhance cost savings and profits for borrowers and lenders, respectively.
• Lock-in Period: Some platforms may require specific lock-in periods, while others may offer flexibility. The ones with longer lock-in periods come with higher rates. Thus, one must take this consideration seriously.

Here, we will delve into the guide to take a crypto loan via Binance:

• Step 1: Account Creation – Create an account on Binance. It requires necessary personal information and Know Your Customer (KYC) verification.

• Step 2: Move to Loan Section – Once the account is set up, click on Crypto Loans by moving on to the Finance tab.

• Step 3: Apply for Loan – Choose the loan amount required and the collateral you wish to deposit.

• Step 4: Set term and apply – Choose the required loan term and review all the order details. Once done, click on Start Borrowing Now and then click on Confirm.

• Step 5: Repayment – Regularly make repayments as per your loan agreement. Try to cover both principal and interest to avoid collateral liquidation.
• Step 6: Loan Closure – As the loan is closed, the collateral’s ownership is also returned after full repayment.

Crypto loans are a handy way to obtain capital for personal use, business ventures, and institutional financial endeavors. Cryptocurrencies have grown as an asset class and payment solutions. For everyone involved, the borderless payment advantage it gives makes it fit for several applications in the finance sector. For this reason, crypto loan platforms are important role players in making funding in this asset class available to everyone who needs it.

Several crypto loan platforms are designed to serve a specific demographic while others offer a more generalized service. Platforms like Alchemix with an innovative approach to loan repayments scale the scope of such services. As an investor, it is important to verify the offerings of a crypto loan platform before taking a loan or committing your asset to the lending pool. Always adjust every engagement on crypto loan platforms according to your risk-tolerance levels.