Taking out a car loan with 0% interest is certainly possible. For this, you do not have to call your bank, but you have to trade with crypto coins such as Bitcoin. After all, you can obtain a car loan without interest rate in a very short time if you have digital currency. That is a wise decision to do just like getting an SR22 Bond (check out what is SR22 Bond and how much does it cost?).
In this article, we explain briefly and concisely how you can buy a car with what we call a ‘crypto loan’.
What is a crypto loan?
Borrowing with cryptocurrency is a loan that does not involve the traditional banking system. This form is becoming increasingly popular thanks to the rise of digital coins such as Bitcoin and Ethereum.
For a traditional loan, the bank relies on your employment contract(s) and (future) income to estimate your borrowing capacity. With a crypto loan, on the other hand, the lender is only interested in the virtual assets that you already own.
Simply put: you entrust the lender with your cryptos and in return, you borrow money, without fuss.
Who can buy a vehicle with a crypto loan?
In theory, anyone who needs financing to buy a car, for example, can take out a loan thanks to cryptocurrency. In practice, the crypto loan means that the borrower surrenders crypto coins to the lender.
This type of loan is therefore aimed at people who already own cryptos, although of course, no one stops you from first purchasing it, and then taking out a loan.
How to buy a car with a crypto loan?
To buy a car with a crypto loan, you need to follow these steps:
- Compare the LTV (loan-to-value) and interest rates offered by crypto banks.
- Open an account on a crypto banking platform.
- Buy cryptos (if you don’t own one or do not have enough yet) or deposit them on the platform.
- Choose the crypto loan offer that fits your risk profile;
- Get the approval and receive money in your regular bank account within 24 hours.
- Buy a car with the money from the crypto loan.
Several lenders offer loans without interest. Also, the conditions of the crypto loan are often more flexible than those of a loan from a regular bank. For example, there are usually no fixed monthly payments and early repayments are free.
Buying a car without selling your crypto coins?
Those who own cryptos usually wait for the right time to sell them. But what if, in your opinion, that moment has not yet arrived but you do want or need to buy a car? You could then feel compelled to sell your cryptocurrencies to get euros instead.
The latter is not necessarily necessary, because you can also use crypto coins as collateral (in the crypto environment the English term collateral is used) to get a crypto loan. That way you can buy a car and then pay off the crypto loan over a certain period of time.
Buying a car without the intervention of a bank?
For some people, it is almost impossible to get a car loan from a traditional bank. Such as when:
- You don’t have a regular income;
- You are unemployed;
- You are on the so-called ‘black list’ of the National Bank.
If you are such a person, a crypto loan can be an alternative, because you do not have to defend your file with a bank.
How long does the process take?
The steps described above can be completed in a few hours. Once your cryptos are deposited on the platform, the acceptance of the loan usually happens immediately. Depending on the method of receipt chosen, the availability of the funds varies between a few minutes and 24 hours.