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- Bitcoin and altcoin holders can easily monetise their holdings by securing hassle free loans
- Few firms like Vauld and Cashaa are offering loans at a interest rate of 12-15% per annum to the crypto holders
- As the loans are always collateralized, the firms dont checks for credit worthiness before disbursing the amounts
Bitcoin and other altcoins owners can now secure hassle free loans. With the help of crypto banks launched in India Bitcoiners can secure loans without any involvement of traditional banks. Such banks are offering credits up to 50-60% of the investor’s investment value. Moreover, besides the leading crypto coin the banks are offering loans on few other cryptocurrencies also, like ETH and XRP. Also, it is known that the banks are taking 12-15% interests on the amount of the loans.
Crypto banks offering loans to Bitcoin hodlers
Platforms like EasyFi Network, Vauld, and Cashaa are offering loans to the cryptocurrency investors in India. Any crypto holders are now allowed to easily secure loans without the involvement of traditional banks. To process the loan applications the users will have to pay 2-3% of the amount for processing charges.
Bitcoin and few other altcoins holders can now secure loans at an interest rate of 12-15% per annum. If we compare the interest rates with the traditional banks, such banks offer personal loans at an interest rate of approximately 12-24% per annum. Notably, it is also observed that such cryptocurrency loans can be repaid at any point in time, because they come with no specific time.
No credit worthiness check before loan disbursements
According to Darshan Bathija, the chief executive officer of Vauld, the loans are always collateralized. Following the collaterization factor, Bathija claimed that they don’t check the credit worthiness of the borrowers. However, the platform is providing a line of credit to its users, which will help the investors by offering liquidity without selling their digital assets.
Crypto loans are observed catching up in India
In the current scenario, platforms like Vauld, Cashaa, and EasyFi Network are in India offering crypto investors to secure loans. Maong the platforms, Vauld has topped in terms of disbursing loans. According to a report from The Economic Times India, in the past few months Vauld alone disbursed $25 billion worth of crypto loans.
Indeed, the feature of such crypto banks can allow crypto holders to simply pledge their holdings and get a loan. Also, it is observed the loan feature is catching up in India. Moreover, a alot of investors are businessmen who are securing such loans. And the loans are helping the businesses to monetise thei holdings lying idle in the portfolios, and raising capitals for their expansion.
