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A company based in Melbourne now offers encrypted loans. Helio operates with an Australian Credit License (ACL) issued by the Australian Securities and Investments Commission (ASIC). In the current bear market, cryptocurrency holders can borrow legal money and keep their digital coins for better times.
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Helio lends the Fiat Against Crypto as a guarantee
<img class = "alignright wp-image-257922 size-medium” title=”The Australian company issues guaranteed cryptocurrency loans” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/shutterstock_1092626231-300×200.jpg” alt=”The Australian company issues loans backed by Cryptocurrencies "width =" 300 "height =" 200 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/shutterstock_1092626231-300×200.jpg 300w, https : //news.bitcoin.com/wp-content/uploads/2018/12/shutterstock_1092626231-768×512.jpg 768w, https://news.bitcoin.com/wp-content/uploads/2018/12/shutterstock_1092626231-696×464. jpg 696w, https://news.bitcoin.com/wp-content/uploads/2018/12/shutterstock_1092626231-630×420.jpg 630w, https://news.bitcoin.com/wp-content/uploads/2018/12/ shutterstock_1092626231 .jpg 1000w "sizes =" (maximum width: 300px) 100vw, 300px”/>Helio Lending accepts four major cryptocurrencies as collateral. The platform currently supports bitcoin core (BTC), ethereum (ETH), litecoin (LTC) and ripple (XRP). It offers loans up to 48 months and with an APR of between 17 and 24 percent, depending on the value of the guarantee.
Customers can choose between 30, 40 and 50 percent of the loan-to-value ratio (LTV). For example, a loan of 10,000 Australian dollars with a 30% LTV would require the borrower to bind 7.19 BTCs as collateral. In this case, the APR would be 17% and the monthly payment of 350 Australian dollars (about US $ 250).
The Helio website has a calculator that can produce different loan configurations. The minimum amount that can be borrowed is set at 1,000 Australian dollars. The application process begins with the provision of a valid email address. To complete the registration, candidates must follow the confirmation link sent by the platform.
Guaranteed credit license
<img class = "alignright wp-image-257917 size-medium” title=”The Australian company issues guaranteed cryptocurrency loans” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/shutterstock_1103180300-300×200.jpg” alt=”The Australian company issues loans backed by Cryptocurrencies "width =" 300 "height =" 200 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/shutterstock_1103180300-300×200.jpg 300w, https : //news.bitcoin.com/wp-content/uploads/2018/12/shutterstock_1103180300-768×511.jpg 768w, https://news.bitcoin.com/wp-content/uploads/2018/12/shutterstock_1103180300-696×464. jpg 696w, https://news.bitcoin.com/wp-content/uploads/2018/12/shutterstock_1103180300-631×420.jpg 631w, https://news.bitcoin.com/wp-content/uploads/2018/12/ shutterstock_1103180300 .jpg 1000w "sizes =" (maximum width: 300px) 100vw, 300px”/>According to the founder of Helio, John O & # 39; Shea, his company is the first entity authorized in Australia to offer encrypted loans. He believes there is a huge market for digital resources in the country. Some estimates suggest that Australians carry out cryptocurrency transactions worth about $ 2.8 million a day.
Speaking with Businessbuyinvest.com, O & # 39; Shea said that there are currently not enough service providers and companies willing or able to support the growing market and to lend against cryptographic assets. That's why he sees an opportunity to "capitalize on something that is so sought after, yet so cheap." The entrepreneur explained:
We provide loans to both individuals and businesses through the credit guaranteed by cryptocurrency. This means that customers who hold bitcoin, ethereum, litecoin or ripple are able to use their assets as collateral for loan financing.
Unlike traditional lenders, Helio can rely on the digital resources transferred from its customers to a guaranteed portfolio. In case of default, the company can sell coins to cover losses. At the same time, Helio customers can benefit from the protection provided by the laws and regulations of ACL and ASIC.
According to Australian media reports, Helio Lending obtained his credit license by acquiring another company that held one, Cashflow Investment. The ACL license will allow Helio to offer its customers even more favorable conditions in the future.
What do you think of the loans guaranteed by cryptocurrency? Share your thoughts on the topic in the comments section below.
Images courtesy of Shutterstock.
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