Crypto Loans Don’t Need Collateral Property Assurances
While everyone was still hesitant whether to invest in bitcoins, cryptocurrency, or even in blockchain technology because of its volatility, we cannot deny the massive and impressive performance it has had in just less than two years. Bitcoin technology started gaining a reputation in December 2016 with a market cap of only around $18 billion. However, a year later, the market cap and profit of Bitcoin surged to a whopping $800 billion!
Despite the warnings about its risks and volatility, many investors are still enticed to join the bandwagon and invest in cryptocurrency. It’s because this platform promised them valuable digital assets. And what’s more? In any case, even if their money runs out or they’re financially constrained, they can easily borrow money through crypto loans! Did that pique your interest? Here’s how you can borrow money though crypto loans!
SALT to Enter Cryptocurrency and Offers Crypto Loans!
One of the country’s giant lending platforms, SALT, started entering the digital lending platform in the United States to enter in cryptocurrency. Its founder and CEO Shawn Owen stated that their company has been very successful since then and now that their assets have grown to an astounding $800 billion. They are now expanding their services to their digital investors and customers through crypto loans or also known as digital loans. The Denver-based Colorado company is now drafting a proposal and methodology to introduce this feature to their marketplace.
Owen also stated that the organization formulated a dedicated team to manage the said feature which will be composed of 25 members and advisors. The team will be led by none other than Erik Voorhees, the CEO of Shapeshift in order to realize the company’s prestigious project to introduce crypto loans. The title of the said project proposal is “Secured Automated Lending Technology”. The company aims to break the tedious process of traditional loans because of collateral requirements. Through crypto loans, their investors and customers can now borrow money easily without having to sacrifice their properties as collateral. Moreover, the investors won’t have to wait for a long time just to process their loans.
SALT Make Crypto Loans Possible Through Blockchain Technology
You might be wondering as to how the SALT company will be able to implement non-collateral crypto loans? Well, that’s where the digital blockchain technology comes in. The SALT will utilize the blockchain technology in order to assess the borrower’s credit score. The borrower can then apply for a crypto loan once he or she achieves the credit score threshold to become eligible for the said service and secure a loan. If your credit score is high enough, you can apply for a crypto loan and you even have the option to offer your cryptocurrency assets as your collateral (if you wished to loan a high amount).
What Is The Process of Applying for Crypto Loans?
In this section, we’ll walk you through the simple process of acquiring a crypto loan.
1. Register for a Membership
In order to be eligible, you need to avail their membership subscription first. In this case, you need to pay for SALT tokens or SALT coins. This will serve as your digital assets. If you’re already a member, then proceed to the next step.
2. Send Your Digital Assets as Collateral to Your SALT Oracle Wallet
Like we said before, you don’t need to sacrifice your properties anymore for collateral. Simply submit your digital asset and if your application gets accepted after verification, the borrowers or lenders will send you a Loan Agreement. You can sign it right away and you only have to wait for a few days to receive your funds.
3. Borrowers Starts to Pay the Lender
Attached to the loan agreement is the schedule of payment or amortization along with the amount you need to pay. What’s great about the SALT system is that if you missed a payment, the company will simply deduct the outstanding balance from your digital assets to pay your loan. However, after you’ve managed to repay all your loans, the SALT will return your remaining digital assets with ease.
4. SALT Will Return Your Collateral After the Loan is Paid
Aside from that, the lender will also release all the digital assets you used as a collateral. You can use your digital assets either to apply for a new loan or to invest it in blockchain technology once again.
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