Using the crypto assets, it is quite possible to get loans if you have Bitcoin, which should be made available on Valud, Cashaa, and EasyFi platforms. Since it is now evident that crypto assets are in play, many firms are trying to key into it. Just recently, few organizations located in India granted their users loans using the digital assets they own as collateral. Without using the regular local banks, this was achieved with the help of crypto banks started for the purpose. They, crypto banks, will be giving out loans ranging between 50% – 60% value of the digital assets owned by those interested. It is quite understandable since Bitcoin is the most famous and widely talked about cryptocurrency. Also, the crypto banks would be dealing with Ethereum, Ripple and granting loans against them.
The interest rates attached to loans involving crypto
The services involved in these loans are only limited to these organizations; EasyFi, Valud, and Cashaa. Although, other Indian companies are offering their customers these services. According to an Economic Times article, $25 billion worth of loans has been given to Valud clients. And they are cryptocurrency-insured loans. Interest rates between 12% to 15% annually are what the crypto banks charge. This is particularly considerate, seeing that the normal or local banks give the same interest rates when people take personal loans. There is also a fee ranging from 2% to 3% charged before the loans are granted; this is called a processing fee.
Are Crypto loans better than traditional personal loans?
The good and inspiring thing with loans accrued to cryptocurrency is that, unlike regular personal loans, there is no particular period to pay back. It is made easy that you can pay back once you have the funds available. This helps with the security and a little bit risk-free, unlike when loans are gotten from the regular local banks. Our organizations will not use the payback value of a customer to check their ability to access the loans but the collateral of their cryptocurrency, said Darshan Bathija, Valud’s CEO.
He also added that this will help their customers hold on to the crypto assets they have and still be able to access loans. The important number of people trying to access loans are customers that want the money’s worth of their cryptocurrency assets, said the CEO at Cashaa. These crypto loans are outstanding in this financial market as it helps investors own their crypto holdings while still able to raise money for their various and daily businesses.