If you own a bitcoin or any other cryptocurrency, we have good news for you. Bitcoin investors can now take out hassle-free loans without any intervention from traditional banks with the help of ‘crypto banks’ recently launched in India.
Crypto banks offer loans of up to 50-60% of borrowers’ crypto asset value. In addition to bitcoin, these banks also make 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 year. In comparison, banks offer personal loans at an interest rate of about 12-24% per year, along with a 2-3% processing fee. Also, keep in mind that you can repay crypto loans at any time as they don’t have a specific mandate.
Where can you get loans for crypto investments?
Currently, companies such as EasyFi Network, Valud and Cashaa, among others, are offering loans against crypto investments in India, according to a report by Economic Times. In recent months, Vauld has disbursed crypto loans worth $ 25 billion.
Darshan Bathija, Vauld’s CEO, reportedly said that since the loan is secured, the company does not check the borrower’s creditworthiness. “The line of credit is given against borrowers’ cryptocurrencies. So if a crypto holder wants liquidity but doesn’t want to sell his asset, he can just pledge it and get a loan. Crypto loans are catching up in India, ”he said.
Kumar Gaurav, Cashaa CEO, told ET, “Many of our borrowers are business people looking to raise money for their business … they make money from the cryptos that are in the wallets to raise capital.”