How to access the Blockfi loan in simple steps
December 6, 2021
BlockFi loan – As an investor in the crypto asset industry, accessing loans get easier with the availability of exchanges who make finances available to borrowers who refinance or pay for debts among other social or personal financing demands that may come up from time to time.
One of these exchanges who ensures crypto investors and traders have access to funds when necessary is BlockFi, it’s loan is referred to as the “BlockFi loan.”
An upside to BlockFi is a window to borrow against your own coins, instead of selling these coins when in need of funds, you take out a loan on them. That’s a good business if you ask me.
What is BlockFi?
Simply put, BlockFi is a cryptocurrency exchange platform that allows its users to take out loans in USD against their cryptocurrencies.
The idea of BlockFi was conceived and birthed by its duo founder namely Flori Marquez and Zac Prince precisely in August 2017.
Historically, BlockFi is growing rapidly following cryptocurrencies relevance and momentum in the industry global market.
Apart from the BlockFi loan that forms a focal stand of this exchange, BlockFi has rendered several services competently in recent past which include but not limited to trading crypto assets, interest earning on crypto assets holding on the BlockFi platform.
With this design, users have the live end to profit from the platform irrespective of their business and investment choice flawlessly.
BlockFi has distinct features that makes it appealing to traders and investors alike, these include but not limited to the below,
- There’s no minimum deposit required to operate its account
- You are not required to have minimum balance whatsoever in your account
- On your crypto deposit with BlockFi, you earn to an upward of 9.5%, where you are not required to pay for maintenance fee
- Withdrawal fees apply on various crypto assets, though negligible to be considered of relevant financial effect
- A withdrawal limit of $5000 applies for each wire transfer
- Transaction turn-around-time/speed is within 1-5 business day.
- There’s insurance in place against your crypto asset
- High end security is in place
- The BlockFi can be assessed both on iOS and Android
Benefits of the BlockFi loan
Like you are aware, BlockFi is designed among other services to help users with USD loans to either refinance or execute their pressing financial obligations at every step of the Way.
Here are why I think the BlockFi facility should be ideal for your financing needs.
- There’s this high tendency to convert your crypto assets to cash/USD as the case may be. By this provision liquidity is expressly guaranteed. You do not need to sell your crypto assets to get money rather you put them up as collateral.
- One budding issue about borrowing is the interest rate being charged, at BlockFi the interest rates are highly competitive that’ll be difficult to resist considering market and industry rate on similar facilities with other exchanges.
- Tax incidence is one issue that scares borrowers from most loans, the good news here is that taking out a loan at BlockFi does not impose tax of any kind on such facility being received
- One aspect to determining eligibility for a loan is your “Credit score,” I implore you to gesticulate a sigh of relief given that BlockFi does not determine your credit worthiness by taking a cue on your credit report. However, your ability to pay back your loan will place you advantageously high for subsequent facilities.
- Rest assured your crypto assets are safe with BlockFi.
How to open a BlockFi account
To open an account you will have to visit the BlockFi website.
Complete the form as presented with your first and last name, preferred valid email address, strong password and referral code where applicable though optional
Check the terms and policy boxes then submit.
You are required to upload a clear ID document, on approval and creation of your account you will have to link your bank account and transfer funds into the BlockFi account immediately.
Note: For new accounts a daily credit limit of $500 apply while established/old accounts have a daily limit of $1,000 allowed.
Now that you have signed up for an account the next thing you may like to do is to apply for a BlockFi loan.
How to apply for a BlockFi loan
Step one: From the borrow icon you will have to choose an asset you are putting up for a collateral, then the cash amount you Intend to receive in this case
Step two: In the available column enter “Your email address” then click on “Get started.” An email will be sent to your mail box with which you are required to validate your email account and commence your loan application
Step three: At this step, you are expected to provide your data/information namely; name, address, date of birth, phone number, SSN, source of crypto collateral, reason for the loan, wallet public key, and bank details.
Step four: On review of your information a loan decision offer is sent to you within a maximum of 24 hours.
Step five: You will then have to sign the loan agreement, in turn forward the crypto asset you intend to use as collateral to BlockFi storage address and the fund will be sent to your preferred bank account
The BlockFi loan repayment works just like the Celsius loan, you are required to make your interest payment monthly in installment.
The principal should be paid in lump sum by the end of your loan tenor. It’s a term loan with maximum tenor of 12 months.
How to pay back your loan
You can repay your loan in 4 different dimensions, you are however advised to use the most suitable process of these.
This involves selling a fraction of your crypto asset used as collateral to repay your loan at the prevailing market price.
How to repay your loan via collateral liquidation
- Kindly submit a support ticket requesting your loan ID to be paid off in the effect of the collateral asset held against it. You will be required to fill a form as a response from BlockFi confirming consent for collateral sale. The process of liquidation takes about 10 minutes though may go up to 10 hours in some instances, where you have excess collateral it will be returned on completion of sale.
You can repay your loan via wire transfer to BlockFi if you deem necessary from your bank portal.
How to repay your loan using wire
You may opt to send a wire transfer to pay off your loan.
- You will have to log in to your scratch account to identify the BlockFi scratch instruction, using the instructions found initial a wire transfer from your bank in view of the repayment amount. The processing turn-around-time is usually within one business day, once the funds have been received by BlockFi your collateral asset will be returned to your account subsequently.
You may opt for Automated Clearing House to pay off your loan
How to repay your loan via ACH
- Kindly log in to your scratch, link your bank account with them, thereafter initiate an ACH payoff. Expect completion within 5-10 business days
The BlockFi allows you to use any of your preferred stablecoins to pay off your loan.
How to repay your loan via Stablecoins
- Check your scratch account for the available pay off amount, you will need to transfer the balance into your prevailing stablecoin wallet, submit a support ticket to pay off your loan ID once your BlockFi reflects the payment.
- Having processed the repayment your collateral asset will be returned.
BlockFi loan duration: The BlockFi usually has a loan tenor which extends to maximum of 12 months
BlockFi rates: You can borrow money at rates as low as 4.5% APR where you are not expected to sell your crypto assets to get a loan rather use them as collateral. Origination fee of 2% applies
BlockFi credit score: Your loan request is not dependent on your credit score to ascertain your eligibility.
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