What is Bitcoin lending and how do these loans compete against traditional loans? Regular loans (you know, the standard loans with the rigorous approval process) are from traditional banks and take a while to be approved.
Your credit will be checked, and you’ll likely be asked to put up some form of collateral. Most individuals will have to put their homes or car titles up as collateral.
If you can’t pay your loan, you risk losing your collateral.
Bitcoin loans are different because you’ll be able to:
- Avoid sky-high APR rates linked to your credit history
- Avoid credit checks completely
- Receive instant processing and fund disbursement
You will need to put up your Bitcoin as collateral, or the crypto that you’re using for your loan, but you don’t have to risk losing your home or car in the process.