Abic Corporation has announced that the firm will be introducing a relatively new loan service, where consumers and businesses can get loans in Japanese Yen given that cryptos (mainly Bitcoin) are placed as collateral. In a statement made by the company, it appears that the service has been open to the Japanese population since June 1st.
The company went onto suggesting that this is a beneficial service for individuals who eventually plan to sell their virtual currency, as the “capital gains on that sale will be miscellaneous income and will be subject to progressive taxation.” This can also induce customers to purchase new crypto with the given loan amount.
What Are The Terms Of The Loan?
As for the loans, Abic Corp., is open to offering them to both individuals and businesses. The amounts are said to range between two million and one billion Yen.
While more details are yet to be disclosed, the annual interest rates are said to range between 2.98 and 15% for the time being. When it comes to repayments, customers have a period of one month and up to five years, with up to a maximum of 60 installments. Any late or omitted payments will result in a 20% annual charge.
The company also confirmed that should a split/ fork occur while holding BTC as collateral, customers will receive their rightful, resulting amounts. Abic Corp., clearly stated, “Even if you receive loans with bitcoin in collateral, there is no worry that the right in division will be lost.”
How will a crypto-backed loan turn out for the Japanese economy? Will consumers be open to the idea?