Seeking traditional loans for owning a house or renovating the old and damaged property or even changing the structure of your residential property by modernizing it, is not only hectic but only a few succeed in getting the loans. In most loan applications, there is no guarantee of obtaining loans. Now there is going to be an option for homeowners who wish to renovate their houses and for this purpose they can seek the loans through crypto without going through hectic and time taking processes and that too with a guarantee of a loan.
Nothing is more financially difficult if one were to fix his or her property because it requires a huge amount of funds. However, there are banks that offer “home renovation loans” subject to the pledge of the property but they charge huge markups as well. But the most difficult part of seeking traditional loans to many is the process of acquiring loans. One has to meet more than a dozen times with the representatives of the bank. At each meeting, the loan seeker is asked to present piles of documents and the applicant is also required to fill too many request forms. The whole process is so exhaustive that during the process almost 50% of the loan seekers withdraw their applications.
There are also credit checks that are carried out by the loan providers and usually, it takes months for sanctioning the loan. Even after spending months in the process, there is no guarantee that the applicant would be given a loan. In fact, the discretion rests with the loan provider who can also deny giving of loans even if there was no reason at all.
However, the crypto has now come in aid and assistance from these loan seekers. It has been reported that a company called Pledge has come up with a proposal to offer crypto-based loans to homeowners. Pledge, is an investment company that offers crypto loans to global crypto customers. The lending company has become partners with 247pro.com, a crypto company. According to both company’s mutual arrangements, the partnership will render crypto loans to the person owning cryptocurrencies. The partnership would not require any physical property to be mortgaged with it. Instead, the crypto owners can provide their crypto coins to the company as security/mortgage against crypto loans. The only condition is whether the loan-seeker is a house owner or not because for the time being crypto loans are for renovation purposes only.
Tony Y. Chan, CEO of Pledge, said that obtaining crypto loans by crypto owners is as easy as buying crypto. He said that the process of loan from the filing of application till reimbursement of required loan amount takes only 30 seconds. He apprised that the loan process is free from rendering information and carrying out any credit checks. Instead, the whole process would be based on smart contracts and therefore everyone will be done automatically.