As buying a home is by itself a serious investment, homeowners often lack the cash to fund further improvements to their property. 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.
Homeowners to Finance Home Improvement Projects Without Selling Their Crypto
“Pledge is a great crypto lending protocol, and with their service, hundreds of our customers (construction companies) can roll out programs like ‘Remodel your kitchen with 0 down’ to their clients,” added George H. Lee, founder and chief executive of 247pro.com, which specializes in providing software services for construction and remodeling companies working for thousands of homeowners. Lee, who believes there’s a huge demand for this kind of offering, stressed:
It can really speed up their decision making process, because most homeowners are house rich, but cash poor.
Pledge and 247pro.com also pointed out that their partnership will connect point of service (POS) loans to blockchain technology. The companies aim to create a “one-stop shop” for those that are interested in both real estate construction and the blockchain space as cryptocurrency investors would be able to borrow without selling their crypto assets to finance their POS loans for home improvement projects.
Although, Pledge and 247pro.com are not the only crypto lenders on the block, as the firms Blockfi and Smartfi also offer loans based on cryptocurrency backing. While Blockfi lets people leverage crypto to borrow money at rates as low as 4.5% APR, Smartfi allows borrowers to obtain fiat or stablecoins for as low as 5.5% APR.
Do you expect homeowners’ demand for crypto-baked loans to grow? Share your thoughts on the subject in the comments section below.