How is buying a home A serious investment in and of itself, homeowners often lack the money to fund further improvements to their property. While traditional bank loans are not as readily available, a new partnership is now offering crypto owners the option of using their digital assets as collateral and instantly borrowing 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 because they hold onto the low liquidity of their properties. Applying for a home equity line of credit (HELOC) or other bank loan requires a credit check and takes a long time to get approved.
Crypto-asset lending company Pledge has partnered with building appraisal and management platform 247pro.com to provide homeowner cryptocurrency holders with quick access to construction loans that they can borrow in exchange for their digital coins. The two companies recently signed a partnership agreement.
Pledge stressed that the deal will allow customers to use their crypto assets as collateral to fund their home improvement projects. “It usually takes homeowners months to get a HELOC or construction loan from banks. There are long loan applications to fill out, banks are doing credit checks on all borrowers, ”noted the company’s CEO Tony Y. Chan, adding:
With Pledge, loans can be funded in less than 30 seconds. Borrowers don’t need to fill out loan applications, we don’t do credit checks or underwriting. With smart contracts, everything runs automatically.
Homeowners finance home improvement projects without selling their crypto
“Pledge is a great crypto credit protocol and its service enables hundreds of our clients (construction companies) to implement programs like ‘Remodel your kitchen with 0 down’ for their clients,” added George H. Lee, Founder and CEO of 247pro.com , who specializes in providing software services to construction and remodeling companies that work for thousands of homeowners. Lee, who believes there is a huge demand for this type of supply, emphasized:
It can really speed up their decision-making process as most homeowners are home rich but cashless.
Pledge and 247pro.com also indicated that their partnership will combine point of service (POS) lending with blockchain technology. Companies want to create a “one-stop shop” for those interested in both real estate construction and the blockchain space, as cryptocurrency investors can borrow without selling their crypto assets to use their POS loans for Fund home improvement projects.
Pledge and 247pro.com aren’t the only crypto lenders in the block, however, as Blockfi and Smartfi also offer cryptocurrency-based loans. While Blockfi allows people to use crypto to borrow money at rates as low as 4.5% APR, Smartfi enables borrowers to get fiat or stablecoins for just 5.5% APR.
Do you expect homeowners’ demand for crypto-backed loans to grow? Do share your thoughts on the matter in the comments below.
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