- 30th March 2018
- Posted by: Lendo
- Category: Blockchain, Cryptocurrency
Lendo has just officially launched its pre-ICO and there are already several very positive YouTube reviews highlighting the benefits of the Lendo blockchain-based loan platform. More than one has pointed out that it avoids the payday loan trap because it takes crypto as collateral.
Some of the YouTubers admit that in the past they have had to apply for a payday loan and whilst a payday loan can be a useful thing, if you find yourself in circumstances that make it problematic to repay the loan, then the debt just mounts. And, as payday loans notoriously have sky-high interest rates, it can lead people into a worse situation than the one they were in when they made the call to the payday loan company.
Payday loans cause mental health problems
In fact, it might not surprise you to know that payday loans are the ‘unhealthiest’ form of borrowing, according to a report by the Royal Society for Public Health in the UK, and discussed in The Guardian. Payday loans have come under fire from many quarters in Britain, including the Archbishop of Canterbury.
Now, actor, Michael Sheen, who played Prime Minister Tony Blair opposite Helen Mirren in The Queen, has launched the End High Cost Credit Alliance, and the Financial Conduct Authority (FCA) is also a founder member of this campaigning organisation that is focused on lenders’ providing fair, affordable credit products.
Sheen said: “We share a moral responsibility to help protect vulnerable customers from the harm high-cost credit causes. The evidence on the impact on our health and well-being is now overwhelming. We have the evidence. Now we need action.” The Royal Society for Public Health report reveals that 62% of payday loan users increase their drinking due to the pressure of repayments and anger, anxiety, depression and feelings of shame are also high amongst borrowers.
The FCA has been keeping an eye on high-cost credit companies and recently capped the overall cost of payday loans, which helps to some extent.
Lend offers another solution to need for credit
Lendo has another credit solution to throw into the mix. It enables conventional lenders to provide a loan in pounds or euros when a borrower offers crypto as collateral. The collateral is stored while the loan is paid off, which means that neither the lender nor the borrower has to stress about a default on the loan. Added to this the loan is only 60% LTV, which also means that both parties are protected. The borrower can’t borrow excessively and the lender is protected against volatility in cryptocurrency values.
And, in case you are thinking, “but I don’t own any Bitcoin or Ether,” you can simply buy ELT, Lendo’s own token and use that as collateral for a loan, as well as a way of repaying it. What is more, with an APR of around 10%, it is much less costly than a payday loan. Plus, no credit checks are required and the cash is available instantaneously once the loan is agreed, which doesn’t take long when the application and everything else is done on the blockchain.
Lendo is another answer for borrowers who need cash to pay for the necessary or unexpected. Join the thriving community at lendo.io and find out how it can help you avoid the high interest rates of payday loans.