I have never gone for this loan it seems very bad to me as far as I know. It is better not to take a bitcoin backed loan. It would be a good idea to sell some if I already have bitcoins. Here there will be no worry of repaying the loan and there will be no need to pay interest. If something goes wrong while taking a loan, there will be no possibility of getting back the bitcoins, so I will never take such a big risk.
taking a loan with bitcoin will be at risk of experiencing an increase in value every time the loan has to be paid and that is also added with interest in the form of bitcoin. But when the price of bitcoin falls it will indeed provide profits. but I prefer to borrow in Fiat because it will remain stable and there will be no increases whatsoever. some people even make loans with bitcoin and a few days later the price of bitcoin pumps and that makes us have to pay more for bitcoin if we have to rebuy bitcoin and return it.