Because purchasing a home is a significant investment in and of itself, homeowners frequently lack the funds to fund additional improvements to their property. While traditional bank loans are not as readily available, a new partnership now allows cryptocurrency holders to use their digital assets as collateral and instantly borrow money for a kitchen remodel or other renovation.
A cryptocurrency lending platform has partnered with a construction company.
Because of the low liquidity of their properties, many homeowners find it difficult to finance home improvement projects that would improve their living standards. When applying for a home equity line of credit (HELOC) or other bank loans, credit checks are performed, and approval can take a long time.
Pledge, a crypto-asset lending firm, has partnered with 247pro.com, a construction estimate and management platform, to provide cryptocurrency holders among homeowners with quick access to home improvement loans secured by their digital coins. The two companies recently entered into a partnership agreement.
Pledge emphasized that the agreement will allow it to offer clients the ability to use their crypto assets as collateral to finance home improvement projects. “Typically, it takes months for homeowners to obtain a HELOC or home improvement loans from banks. Long loan applications must be completed, and banks conduct credit checks on all borrowers,” said company CEO Tony Y. Chan, adding:
Loans can be funded in less than 30 seconds with Pledge. Borrowers are not required to fill out loan applications, and no credit checks or underwriting will be performed. With smart contracts, everything is automated.
Homeowners Can Financing Home Improvement Projects Without Having To Sell 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,” said George H. Lee, founder, and CEO of 247pro.com, which specializes in providing software services for construction and remodeling companies that work with thousands of homeowners. Lee, who believes there is a high demand for this type of service, emphasized:
Because most homeowners are house-rich but cash-poor, it can significantly speed up their decision-making process.
Pledge and 247pro.com also stated that their collaboration will link point-of-service (POS) loans to blockchain technology. The companies hope to create a “one-stop-shop” for those interested in both real estate construction and blockchain technology, as cryptocurrency investors will be able to borrow without selling their crypto assets to finance their POS loans for home improvement projects.
However, Pledge and 247pro.com are not the only crypto lenders on the market; Blockfi and Smartfi also provide loans backed by cryptocurrency. While Blockfi allows people to borrow money using cryptocurrency at rates as low as 4.5 percent APR, Smartfi allows borrowers to obtain fiat or stablecoins at rates as low as 5.5 percent APR.