Statistics reveal that up to six million individuals own crypto wallets. The crypto world is booming, and people worldwide are doing all they can to get into action. Cryptos provide their users with the ability to use digital currencies that are secure and decentralized.
In the recent past, crypto loans have increased in popularity. These types of loans ease the process of lending money when compared to traditional money borrowing methods. Unfortunately, the crypto loans idea still feels a risk for many people.
We aspire to dispel any form of worries and inform everyone that crypto loans live up to the hype. Here are some of the reasons why you need to start taking advantage of crypto loans.
Have you ever applied for a traditional loan? If yes, then you understand how the entire process can be lengthy. Your credit score will always play an integral factor in determining the amount you can borrow when it comes to standard lending.
However, you risk failing to get the funds you require when your credit score is low. Several factors, such as credit history and income, will always be taken into consideration. When you have a bank willing to offer you a loan, you will have to provide them with all sorts of personal information. You will never have a lot to say about the loan terms, and when you do not have a bank account with that particular bank, it will be quite challenging to get a traditional loan.
When going for a crypto loan, you won’t have to worry about all these things. You will not be required any bank account, and your credit score will not be considered in most of the crypto lending platforms. You will be in a position to get the funds you need with the crypto loans.
Very Fast to Process
It will take you a few days for your loan to be approved when you borrow money from the bank. Although most banks nowadays are speeding up their processes, most of them still don’t. Going to the bank is never the best option when you need a loan within the shortest time possible.
Compared to crypto loans, several platforms will approve your loan request within the shortest time possible. The platforms will never request several documents, as the case with banks, although they will always request a copy of your ID. You will always be eligible for a crypto loan provided you have a government-issued ID and enough crypto to deposit as collateral.
Ability to Get Flexible Loan Terms
You will never have many choices whenever you request a bank loan when it comes to loan terms. The bank will always have the final say on the loan amount and the interest rate. With the crypto loans, the loan terms are customizable. The borrower will decide the duration of the loan. You will also decide on the loan to value ration and fiat currency, which you will be paid out. The loan amount will depend on the collateral amount you have. The rest of the loan terms will be very flexible, especially when you compare the banking option.
There are crypto loan platforms that will provide you with flexible repayment terms. Some will never make you pay the monthly payments provided you can pay back the loan in full within the repayment duration.
Safe and Secure
Most banks are known to misuse the members’ money by creating fake client accounts and laundering funds. Although crypto loans seem risky for many people just because they are a digital currency, they are incredibly safe and secure. Any reputable lender will always spell out their security measure on their website.