Homeowners have offered cryptocurrency-backed loans to fund home improvement projects – Bitcoin News
How buying a house is in itself a serious investment, homeowners often lack the money to finance further improvements to their property. While traditional bank loans aren’t as readily available, a new partnership now offers cryptocurrency holders to use their digital assets as collateral and instantly borrow money for a kitchen remodel or other renovation. .
Crypto lending platform partners with construction company
Many homeowners find it difficult to finance home improvement projects that would increase their standard of living as they struggle with low liquidity in their properties. Applying for a Home Equity Line of Credit (HELOC) or other bank loans involves credit checks and takes a long time to get approved.
Crypto-asset lending company Commitment associated with 247pro.com, a construction valuation and management platform, to offer homeowner cryptocurrency holders quick access to home improvement loans that they can take out for their digital coins. The two companies recently signed a partnership agreement.
Pledge stressed that the deal will allow it to provide customers with the ability to use their crypto assets as collateral to fund their home improvement projects. “Typically, homeowners take months to get a HELOC loan or home improvement loan from banks. There are long loan applications to fill out, banks perform credit checks against all borrowers, ”noted company CEO Tony Y. Chan, adding:
For Pledge, loans can be funded in less than 30 seconds. Borrowers do not have to complete a loan application, we will not do any credit checks or underwriting. Everything is automatic with smart contracts.
Homeowners Fund Home Improvement Projects Without Selling Their Crypto
“Pledge is a great crypto lending protocol, and with their service hundreds of our clients (construction companies) can roll out programs like ‘Reshape your kitchen with 0 down’ to their clients,” added George H. Lee , founder and CEO of 247pro.com, which specializes in providing software services for construction and home improvement companies working for thousands of homeowners. Lee, who believes there is a huge demand for this type of offering, pointed out:
It can really speed up their decision making process as most homeowners are rich in homes but poor in money.
Pledge and 247pro.com also pointed out that their partnership will link point-of-service (POS) loans to blockchain technology. The companies aim to create a ‘one-stop-shop’ for those interested in both real estate construction and the blockchain space, as cryptocurrency investors could borrow without selling their crypto assets to fund their POS loans for home improvement projects.
Although Pledge and 247pro.com are not the only crypto lenders in the block, as companies Blockfi and Smartfi also offer loans based on cryptocurrency support. While Blockfi allows people to leverage crypto to borrow money at rates as low as 4.5% APR, Smartfi allows borrowers to get fiat or stablecoins for as low as 5.5%. % APR.
Do you expect homeowner demand for cryptocurrency loans to increase? Share your thoughts on the subject in the comments section below.
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