Best Crypto Loan Platforms To Take Out Crypto Loans In 2025

When ranking the best crypto loan platforms 2025, we evaluated safety & custody (proof-of-reserves, rehypothecation policies), loan-to-value (LTV), APR structures, asset coverage, liquidity depth, and user experience. If you’d like to understand how DeFi lending mechanics work, check our explainer on Aave.

Binance is a CeFi crypto loan provider that combines crypto loans with its exchange, so you can borrow and trade in one place. It supports loans with more than 20 different cryptocurrencies.

In June 2025, I tested it by borrowing $3,000 using 0.2 BTC (Bitcoin) as collateral. The loan had a 2% one-time fee (called an origination fee) and a 7% annual interest rate (APR).

Compared to last year, Binance has lowered its Bitcoin loan rate from 8% to 7%, based on its official terms. Its huge lending activity in 2025 makes sense, since Binance has over 250 million users worldwide, according to CoinMarketCap.

The exchange also boasts over 100 million downloads on the Google Play Store, demonstrating its popularity among crypto traders.

Crypto.com, is also another leading CeFi crypto loan provider. It provides an LTV ratio of up to 50% by depositing SAND, FTM, DYDX, KSM, and AVAX as collateral. It also supports over 20 collaterals and about 23 loan currencies. 

Staking CRO gives you access to much lower rates.

For example, in June 2025, I borrowed $2,000 at an 8% annual interest rate (APR) because I had a high amount of CRO staked. Without staking, the rate would have been much higher, around 14%.

Compared to last year, Crypto.com has become a bit more affordable: back then, the non-staking rate was as high as 16%. All of these have made the platform more popular among crypto traders. 

According to Crypto.com, over 100 million users actively trade on the platform. This figure is supported by over 10 million downloads on the Google Play Store.

Xapo Bank is a licensed private bank and regulated Virtual Asset Service Provider (VASP) rising as one of the best go-to crypto loan platforms in 2025. You can access Bitcoin-backed loans through its lending arm, Xapo Credit Limited.

Xapo stands out among other CeFi platforms by blending private banking experience with crypto lending. This means, your BTC collateral is never lent out or rehypothecated.

We tested Xapo Bank in July 2025 by borrowing $10,000 using 0.5 BTC as collateral. The loan had no origination or hidden fees. We were offered a  10% annual interest rate (APR), and a flexible 6-month repayment term.

The funds were credited instantly to our Xapo Bank account, and I were able to spend them right away with Xapo debit card.

Xapo Bank has maintained the same conservative loan-to-value (LTV) ratio of 20-40% since 2024. However, its global debit card, 3.75% USD savings rate, and 0.5% BTC yield make its membership perks stand out even more.

The catch? You need to pay a $1,000 annual membership fee, which makes it best suited for long-term Bitcoin holders who want banking-grade security and seamless liquidity access.

Xapo appears to appeal to an exclusive circle of users. As of 2025, there’s no exact figure of its user base, but Google Play Store downloads are around 100k+. Although it has a smaller user base compared to Binance or Crypto.com, Xapo Bank is still popular within a corner of the market.

Nexo, a CeFi crypto lending platform that offers flexible loans with rates that depend on your loyalty tier. Users who hold and stake NEXO tokens can qualify for lower rates, with Platinum members getting the best deals.

In June 2025, I tested a $5,000 loan using 0.1 ETH as collateral. Since I was on the Base Tier, my annual interest rate (APR) was 10%. The process was very smooth, and the user experience felt beginner-friendly.

For loyal users, Nexo can be much cheaper. Platinum members can get rates as low as 2.9%, and compared to 2024, those top-tier rates have dropped from 3.5%.

Nexo is available in over 150 jurisdictions, according to its website. The platform recently returned to the US, meaning US traders can enjoy its services now.

Beyond offering good crypto loans, Nexo provides reliable customer service, which is important for a fast-paced market like crypto. With more than 5 million downloads on the Google Play Store, Nexo is a reputable platform to get crypto loans.

Unchained Capital provides crypto loans designed for serious Bitcoin holders who want transparency and security. According to their website, Unchained Capital offers Bitcoin-backed loans with terms of 90 to 360 days. Plus, interest-only payments every 30 days. 

Interestingly, your BTC is never lent out to others. Their minimum loan size is fairly high (starting around US $150,000), and rates around 14% APR for 6- to 12-month terms.

Unchained Capital also distinguishes itself with its multisig custody system, which adds an extra layer of security by requiring multiple signatures to move your BTC.

This system helps prevent single-point failures and ensures you retain control over your collateral. Adding to that, the platform provides a dashboard that displays your loan health.

This means you get to see how far your collateral is from liquidation thresholds. The goal is for you to manage risks if the BTC price moves. 

Unchained stands out as one of the most secure crypto loan platforms in the US. Although the high minimums and APRs may not appeal to casual traders, Unchained is a good option for large BTC holders.

Bybit is a centralized crypto platform (CeFi) that lets people take out crypto loans. Unlike DeFi platforms, you don’t need to manage complicated wallets or smart contracts, because Bybit handles everything for you. It also allows for flexible repayment and usually offers higher loan-to-value (LTV) ratios, meaning you can borrow more compared to your collateral.

In June 2025, I tried borrowing $2,000 using 0.1 ETH as collateral. The loan came with an 8.5% annual interest rate (APR), and the approval process was very quick.

Compared to 2024, Bybit has added support for USDC (a popular stablecoin). Now, more traders use Bybit for crypto loans. The platform has over 10 million downloads on the Google Play Store and 70 million users globally, according to its announcement. 

It makes sense to use Bybit if you value security and the reputation of a platform. CoinGape lists Bybit as one of the best crypto apps for 2025.

Aave is one of the best Defi lending platforms that excels at crypto loans. It is present on popular blockchains like Ethereum, Polygon, and Avalanche. It uses smart contracts that have been checked for security to offer crypto loans.

For example, in June 2025, I was able to borrow $2,000 worth of USDC (a stablecoin) by putting up 0.1 ETH (Ethereum) as collateral, and the whole process only took a few minutes. However, the website isn’t super beginner-friendly, as you need to  DeFi (decentralized finance) knowledge.

Aave also offers flash loans, a form of crypto loans without collateral. These are special loans that don’t need collateral, but they must be borrowed and paid back within the same transaction. They’re often used for quick trading strategies like arbitrage. Aave charges a small fee of 0.05% for these loans.

One thing to note is that interest rates change. For example, the annual interest rate (APR) for borrowing Ethereum went down from 4% in 2024 to 3% in 2025.

Alchemix is a crypto lending platform that works a little differently from most others. It offers self-repaying loans, which means the money you put up as collateral earns yield (interest), and that income is automatically used to pay off your debt over time.

For example, in June 2025, I tried borrowing $2,000 worth of DAI (a stablecoin) by locking up 0.05 ETH. I liked the idea that the loan could slowly pay itself back, but I also noticed that Alchemix only lets you borrow up to 50% of the value of your collateral.

Since 2024, the platform has expanded and now also supports USDT (another stablecoin), according to its official documentation. 

Save Finance is another CeFi platform that mainly focuses on loans using stablecoins like USDT. Its loan rates usually range between 5% and 12%, according to its Supply and Borrow APY terms.

In June 2025, I tested it by borrowing $3,000 in USDT using 0.05 BTC as collateral. The loan came with a 6% annual interest rate (APR), and the funding was very quick.

Compared to 2024, Save Finance has expanded by adding support for ETH as collateral.

Compound is a DeFi crypto lending platform that works with lending pools. Instead of borrowing directly from another person, you borrow from a shared pool of funds. The interest rates change dynamically depending on how much is being borrowed or supplied.

In June 2025, I borrowed $3,000 worth of USDC (a stablecoin) by putting up 0.08 ETH as collateral. The process was smooth and efficient, but it did require setting up a crypto wallet to interact with the platform.

Since 2024, Compound has grown a lot in its total value locked (TVL), which measures how much money is held in the platform.

This value increased from $2.32 billion to $2.9 billion, according to creased to $6 billion, according to DefiLlama. We recommend Compound because it is one of the top DeFi protocols to use in 2025.

Maple Finance, a DeFi platform, offers institutional-grade lending pools. In June 2025, I tested a $10,000 loan against 0.15 BTC at 7% APR, noting non-custodial security. Compared to 2024, Maple expanded pool options.

Maple Finance is a DeFi lending platform that focuses on large-scale, institutional-style loans. Instead of borrowing directly from individuals, users tap into lending pools managed by professional delegates.

Since it’s DeFi, you keep control of your funds through non-custodial security (meaning you don’t hand over your crypto to the platform).

In June 2025, I tried borrowing $3,000 using 0.15 BTC as collateral at a 9% annual interest rate (APR). The process worked smoothly, with the added trust of keeping control of my wallet.

Compared to 2024, Maple has grown by offering more lending pool options, according to its official documentation. According to Maple’s Q2 2025 Market Update, the platform has exceeded $2.6 billion in assets under management (AUM). 

This number reflects active engagement from 154 institutional lenders and a larger pool of users participating via decentralized lending pools.

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.

When people talk about “free crypto loans,” they usually mean loans that feel almost cost-free because of very low or special interest rates.

For example, on Nexo Finance, if you are a loyal holder of NEXO tokens, you can borrow at rates as low as 2.9% APR. That’s close to free compared to traditional bank loans.

On Alchemix, you can deposit your cryptocurrencies, such as ETH or DAI, then borrow up to half of it, and the loan pays itself back over time.

How does this happen? Well, your deposit earns yield, and that yield slowly clears your debt in the background. It’s not instant, but it means you don’t have to worry about making monthly payments.

On the other hand, platforms like Binance or Bybit sometimes run promotions with very low or even zero-interest loans for a short time. These offers are limited, but they give you a chance to borrow almost for free.

Even in these cases, remember that  your loan is backed by your crypto. If prices drop, you can still lose your collateral to liquidation.

Flash Loans: Another Kind of “Free”

In DeFi, flashloans are abit more advanced, but they’re interesting because you don’t need to put up any collateral at all. Instead, you borrow money and repay it before the end of the transaction. This is also called One Block Borrows

Think of it like borrowing $5,000 for just a few seconds, using it to take advantage of a price difference between exchanges, then paying it back instantly.

It wil only cost you a small fee (Aave charges 0.05%) plus the gas fee for the transaction.

• Example: 

  Imagine you borrow $10,000 USDT for just a few seconds.

  • You notice ETH is selling cheaper on Uniswap but more expensive on SushiSwap.
  • With the borrowed money, you buy ETH on Uniswap, then instantly sell it on SushiSwap for a higher price.
  • You repay the loan plus a tiny fee (about 0.05%, or $5).
  • The price difference is yours to keep as profit.
    

That’s exactly how a flash loan works. It is quick, collateral-free, and all in one transaction.

In 2024, over $5 billion worth of flash loans were processed on Aave alone. Traders use them for arbitrage (buying low on one exchange, selling high on another), refinancing existing DeFi loans, or swapping collateral quickly.

For beginners, though, flash loans aren’t the best starting point because they require either a good understanding of coding, EVM, smart contracts, or special tools like Furucombo. 

You risk the loan being cancelled automatically, in case something goes wrong, although you will still lose the gas fee spent on the transaction.  New users should stick with platforms like Nexo, Alchemix, or Binance for “almost free” loans through loyalty programs, yield strategies, or promotions.

If you’re advanced and comfortable with DeFi, you can explore flash loans, which are the only true crypto loans without collateral.

Completing KYC (Know Your Customer) checks largely depends on the platform of your choice.  

Centralized platforms:

CeFi companies like Binance, Nexo, Coinbase, or Ledn almost always require KYC. This means you’ll need to present your ID, passport, or driver’s license. In some cases, a selfie and proof of address are required. 

Why? Because these companies are regulated and must follow rules against money laundering and fraud. Should you borrow money that involves fiat like USD, EUR, GBP, KYC is unavoidable.

Decentralized platforms:

DeFi platforms such as Aave, Compound, or Alchemix usually don’t require KYC. You just connect your crypto wallet (e.g., MetaMask), deposit collateral, and borrow. No ID checks, no sign-up forms.

However, to get crypto into your wallet in the first place, you may have already done KYC on an exchange where you bought it.

Sometimes, small crypto lending platforms may skip KYC, but these come with bigger risks of scams, poor security, or sudden shutdowns.

Undergoing KYC  means less privacy but more safety, regulatory protection, and usually better loan terms.

Skipping KYC on DeFi platforms means more freedom and anonymity, but you take on more personal risk if something goes wrong.

If you’re new, it’s usually safer to stick with trusted, regulated platforms like Nexo, Binance, or Crypto.com. If you’re comfortable with DeFi and want privacy, explore Aave or Alchemix, but make sure you understand the risks first.

At Coingape, we rank the best crypto loan platforms 2025 using a simple but reliable criteria. The main objective is to help you quickly spot which crypto interest loan providers are safe, affordable, and practical for everyday use. 

Here’s what we look at: 

1. 1. APR & Fees (20%)

   We check how much it costs to borrow, including interest and hidden fees. For example, Ledn charges a 2% admin fee, while Binance adds a 2% origination fee. We favoured platforms with lower and more transparent fees. 

   2. Maximum Loan-to-Value (LTV) (20%)

   Maximum LTV is how much you can borrow against your collateral. For example, Aave allows you up to 75% LTV, meaning you get more liquidity for your assets. 

   3. Collateral Options (15%)

   We also analyzed the collateral options available for you on these crypto loan platforms. The more coins you can use, the better. Nexo supports over 38 cryptocurrencies, while Unchained Capital only accepts Bitcoin. 

   4. Security & Custody (15%)

   We also considered safety of your cypto. Some platforms keep funds in trusted custodians like BitGo (Ledn), while others like Aave are non-custodial and rely on smart contracts. We also give extra points for audits, insurance, or proof-of-reserves. 

   5. Funding Speed (10%)

   How fast can you get your loan? This matters alot because no one wants to be delayed. While Aave gives you funds instantly, Ledn may take up to 24 hours. 

   6. Flexibility of Terms (10%)

   Can the platform allow you to repay early without penalties or adjust your loan easily? For example, Ledn lets you repay anytime without extra costs, while Nexo allows flexible drawdowns. 

   7. Track Record (10%)

   We check reliability based on past performance. Aave has processed over $20 billion in loans, while Ledn has handled $9 billion. 

   8. Transparency (5%)

   Platforms that openly publish reports and proofs score higher. Ledn, for instance, issues monthly proof-of-reserves, while Unchained shares details of its multisig custody setup.

This evaluation method is based on hands-on testing and real market research, making sure the platforms we recommend balance low rates, strong security, and user-friendly features.

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.