It’s no longer news that cryptocurrencies are gradually going mainstream. Ukrainian loan offices have caught the cryptocurrency fever and will soon start accepting virtual currencies as collateral for loans.
Pawn Shops in Kyiv, Ukraine have hinted that borrowers will soon start obtaining loans in paper money using their crypto assets. Skarbnytsya claims it’s the first and biggest non-government owned network of pawnbrokers in Kiev and Ukraine.
As written on its website www.skarb.com.ua/m/, Skarbnytsya has millions of users, with over 1,200 staff and 300 pawnshops.
The firm boasts of offering its clients the best services in Ukraine’s non-bank lending industry.
Skarbnytsya announced last week that in conjunction with its partners, it will soon start accepting cryptocurrency collaterals for loans. The company’s head of marketing, Ivan Ipatov, reiterated that:
“The implementation of this project is due to the rapid development of crypto and blockchain in the world. Our clients will be able to use the money and, at the same time, receive income from the growth of cryptocurrencies in future.”
How it works
The Loan office has made it clear that the entire process of obtaining the virtual currency-secured loans will be a frictionless one, without undue delays and crazy formalities.
Skarbnytsya has said that the term and the amount of loan a client can get are determined by the type and volume of the digital asset a user presents.
Once a user sends his loan request along with collateral, the firm’s IT department will automatically note the amount and price of the cryptocurrency to know how much loan the client can obtain.
“This means that in the event of a price increase, an increase in the loan amount is possible. In case of a fall [in price], the borrower has sufficient time to decide on the future fate of their assets,” Skarbnytsya explained.
The firm also noted that cryptocurrency holders can get loans in Ukrainian Hryvnia (UAH), without fees or hidden charges. borrowers have up to 31 days to repay their loans. They can also decide to roll it over.
“As soon as the debt on the loan is repaid, the entire amount of the cryptocurrency, which would have been transferred as collateral, is returned to the borrower in full,” the pawnshop said.