While traditional bank loans are not as easily available, a new partnership now offers crypto holders to use their digital assets as collateral and instantly borrow money for a kitchen remodeling or some other renovation.
Crypto Lending Platform Partners With Construction Company
Many homeowners find it hard to finance home improvement projects that would raise their living standards as they are stuck with the low liquidity of their properties. Applying for a home equity line of credit (HELOC) or other bank loans involves credit checks and approval takes a long time.
Crypto-asset lending firm Pledge has joined forces with 247pro.com, a construction estimate and management platform, to offer cryptocurrency holders among homeowners quick access to home improvement loans they can take against their digital coins. The two companies have recently signed a partnership agreement.
Pledge emphasized the deal will allow it to provide clients with an opportunity to use their crypto assets as collateral to finance their home improvement projects. "Typically homeowners will take months to get a HELOC or home improvement loans from banks. There are long loan applications to be filled out, banks run credit checks against all borrowers," the company CEO Tony Y. Chan noted, further elaborating:
"For Pledge, loans can be funded in less than 30 seconds. Borrowers do not have to fill out any loan applications, we won't be doing any credit check or underwriting. Everything is automatic with smart contracts."