As conventional financial lenders become more stringent on customer creditworthiness, many borrowers have had it rough accessing loans — and we completely understand them. The situation had been even worse for crypto owners who, despite holding cryptocurrencies, couldn’t acquire loans using their digital assets as collateral. However, with the entry of crypto lenders, the situation has changed for the better.
Borrowers can now approach these lenders with their crypto holdings as their collateral and access credit. A typical example of how lenders can provide crypto borrowers with credit without necessarily selling their digital currencies is Bankera Loans — both individual and institutional clients can obtain credit through loans offered by the company.
Diverse Loan Packages
Crypto-backed loans come in all shapes and sizes with most crypto lenders being able to offer incredibly high loans to their clients, almost matching the traditional banks. For instance, you can now get a loan from as low as 25 EUR to as high as 1 million EUR at Bankera; the company also provides an option to take a loan with an LTV of 75%, which exceeds the 50% standard within the industry.
Conventionally, if the LTV ratio of a loan is low, then so is the rate of interest. Bankera has three loan packages, namely: lowest rates, most popular, and maximum LTV. The interest charged for these three for loans over €5000 is 6.95%, 9.95%, and 12.95%, respectively.
Easy to Withdraw for Both Crypto and Fiat
Borrowers who want to withdraw their loans in fiat currency or crypto can now easily do so via crypto lenders. Some crypto lending platforms only support one of the options, while few offer the flexibility to choose among the type of withdrawal currencies. For instance, Bankera loans can be cashed out in fiat (Euros), as well as in cryptocurrencies, including Bitcoin (BTC), Ether (ETH), and Tether (USDT) among others.
Moreover, you, as a user, can make collateral deposits in different digital currencies supported on the platform: Bitcoin, Ether, NEM (XEM), and Dash (DASH). There are plans to add more cryptos to give borrowers more alternatives.
If you purchase the Banker token (BNK), you will benefit from lower rates of interest. Besides, you are given a standard loan period of one year to repay the loans, but you can extend it if you are unable to clear the debt by the time the contract lapses.
Expedient Approval Process
While banks maintain a rigorous loan approval process, competitors within the lending industry have upped the game by making the process much faster and easier than before. There are no lengthy credit checks, and the entire borrowing process can be completed online from the comfort of your home. That is the approach that players such as Bankera use.
Once you have signed up for an account, all you have to do is deposit your digital asset as collateral into the lender’s wallet and select your preferred loan package. When your loan is approved, the funds are transferred into your account.
Also, if you want a flexible repayment plan, Bankera will allow you to repay the loan even before the set date. What’s more, it can be paid in different cryptocurrencies.
To grow their user base, many lenders rely on referrals. Borrowers who use the platforms have an excellent opportunity to make an income if they refer other users to the lender. Bankera Loans will also feature a Referral Program which will offer 10% of the fees paid by the referred user, which is instantly converted to BTC.
Finally, for a crypto lender, it is vital to have interactive and responsive support that can answer queries at all times. Bankera understands the importance of fast customer support and has a 24/7 Live Chat and a help desk to respond to any problems you may face.
Crypto loans are beneficial products that have helped lenders and institutions involved in cryptocurrencies, who have been locked out of borrowing. Therefore, with the help of platforms such as Bankera, borrowers can use their crypto assets to access credit at very favourable terms.