If you own a bitcoin or any other cryptocurrency then we have good news for you. Bitcoin investors can now secure hassle free loans without any involvement of traditional banks with the help of ‘crypto banks’ that have been recently launched in India.
Crypto banks are offering loans up to 50-60% of borrowers’ crypto asset value. Besides bitcoin, these banks are also providing loans on investments in ethereum or ripple or a few other crypto investments.
Interest rates on crypto loans
You can easily secure crypto loans at an interest rate of 12-15% per annum. In comparison, banks offer personal loans at around 12-24% interest rate per annum, along with a 2-3% processing fee. Also, keep in mind, that you can repay crypto loans at any point in time, as they come with no specific tenure.
From where to get loans on crypto investments?
Currently, firms like EasyFi Network, Valud and Cashaa, among others, are offering loans against crypto investments in India, according to a report by Economic Times. In the past few months, Vauld has disbursed crypto loans worth $25 billion.
Darshan Bathija, CEO of Vauld, reportedly said that since the loan is collateralised, the company’s doesn’t check the creditworthiness of the borrower. “The line of credit is given against borrowers’ crypto holdings. So, if any crypto-holder wants liquidity, but doesn’t want to sell off his holdings, he can just pledge it and get a loan. Crypto loans are catching up in India,” he was quoted as saying.
Kumar Gaurav, CEO of Cashaa, told ET, “A lot of our borrowers are businessmen who want to raise funds for their business… they monetise the cryptos lying idle in the portfolios to raise capital.”