Get a loan with cryptocurrency in 3 hours
The record of the fastest microloan receipt was broken. Based on a real experience, the process of registering, authenticating, providing a guarantee and receiving a loan on one of the cryptocurrency platforms was completed in less than three hours. Meanwhile, the process of getting a loan in our country is a difficult and time-consuming path and has its own challenges. Complicated bureaucracy, requesting difficult guarantees and requiring long-term deposits are among the difficulties of receiving micro-facilities in Iran’s banking system. However, the policies to control the balance sheets of banks in recent months have added to the difficulties of this path. However, it seems that receiving a micro-loan with a cryptocurrency guarantee has been able to largely overcome this long-standing problem of the banking system and provide quick access to loans for everyone; A method that can challenge the traditional ways of receiving facilities. However, this method is not without risk and requires trust in the lending platform. On the other hand, the applicant must accept the risk of the fall in the price of the cryptocurrency collateral and its sale by the facilitator.
While the recent policy of the central bank has made access to microloans more difficult than in the past, internet businesses have found easier ways to pay for microloans.
Based on this, the user can receive up to 70% of the value of the verified cryptocurrency by purchasing any amount of specified cryptocurrencies. Follow-ups of “Daniya Ekotsat” show that the performance of payment of facilities in this method is significant and the process of application to payment of facilities reaches less than 3 hours. This is despite the fact that before some companies providing micro-facilities provided the possibility of buying credit from some stores by receiving a guarantee check. It seems that in the absence of innovation in the facilitation of the country’s big banks, smaller companies are inventing efficient and up-to-date methods to facilitate micro financing.
Cryptocurrency becomes collateral
For several years, cryptocurrencies have found their place in the financial markets under the shadow of a significant price increase. Developments in this field have had a significant speed in recent years. As usual, after some time under the influence of these developments, Iran is witnessing the formation of new businesses around cryptocurrencies. In one of the most interesting cases, we see that a business active in the field of cryptocurrency, in cooperation with a micro-facility provider, has made it possible for its customers to pledge cryptocurrency in less than a few hours and without the need Receive micro-facilities according to the usual formalities of receiving loans. This possibility can be considered an attractive and easy option for obtaining a loan; A loan that is worth obtaining in the current conditions of the country.
Removal of warranty formalities
In this way, it is enough to choose the amount of loan you need after opening a user account. This number can include an amount between five and one hundred million tomans. After selecting the amount, the repayment period will be displayed for customers. This section contains 4 options. Cryptocurrency microloan applicants can choose between one-month, three-month, 6-month, and 9-month repayment options. Choosing between longer-term options simply entails a higher operating cost for the applicant; The longer the repayment period, the higher the operating fee. The annual profit of this credit is 23%; But it seems that taking into account the operating cost, a higher effective interest is charged for these microloans. After these cases, the mentioned site displays the amount of cryptocurrency required for the guarantee, and by providing this guarantee, you are only a few clicks away from receiving the facility. This new mechanism can be considered by far the fastest way to pay facilities in Iran.
Which cryptocurrencies are accepted?
The cryptocurrencies that can be used for collateral have an acceptable variety. Accordingly, currently 15 cryptocurrencies are accepted and can be used as collateral. Bitcoin, Ethereum and Tether are three well-known and popular cryptocurrencies that can be verified in this system. Based on this, it is possible to receive facilities equivalent to 60% of the value of verified Bitcoin and Ethereum. This number reaches 70% for Tether. The coverage of cryptocurrency collateral varies between 40 and 70 percent. In other words, depending on the type of cryptocurrency, the applicant can receive a small loan of 40-70% of the Riyal value of his cryptocurrency. USD Coin, Dai, Dogecoin, Tron, Cardano, Binance Coin, Solana, Ripple, Shiba, Matic, Avax and Polkadat are other cryptocurrencies that can be used to get microloans.
Where is the risk of work?
So far everything seems to be in order and getting a cryptocurrency loan is almost easy and risk free. However, not everything is that simple. In the facility agreement, a part of it always deals with the conditions under which the facility provider can use collateral or guarantee. You should note that in this method of receiving facilities, the applicant may pay his installments on time and correctly; However, the lender can still sell his collateral and settle the loan. The reason for this problem is the fluctuating price of cryptocurrencies. Accordingly, in the final stages of receiving the facility, the applicant will be informed that if the price of the validated cryptocurrency decreases to, for example, 70% of its current value, this collateral will be sold and the loan will be settled. At this stage, the applicant can cancel the entire process by not accepting this condition. However, this creates an incentive for applicants to pledge cryptocurrencies that have less price volatility. For example, Tether fluctuates only with the price of the dollar and is considered the most reliable means of guarantee.
Shoes in the desert!
Undoubtedly, a micro loan with cryptocurrency collateral is not an ideal option; But compared to the ones available in the Iranian facility market, it is considered a unique option with exceptional strengths. In a situation where the recent policy of the central bank in limiting the growth of banks’ balance sheets has made it more difficult to access micro-bank loans than in the past, and on the other hand, the process of finding an official guarantor is more difficult than ever, without a doubt, alternative financing methods with all their shortcomings are a are considered an advantage. In other words, although a crypto-guaranteed loan is not a great option, it is an example of a shoestring in the desert. Previously, some companies had operated by providing the possibility of receiving loans to buy goods. Based on this, users could borrow from these platforms and shop in selected stores using checks as collateral. Undoubtedly, micro-facilities play a decisive role in the quality of life of the majority of people in the society and can increase their level of well-being by providing some goods and services. While the country’s economic conditions are such that the country’s big banks are facing problems in paying micro-facilities, it seems that the existence of such platforms can partially respond to the demand for micro-loans in the market.