Users of Major Cryptocurrency Platforms Have the Option to Receive Loans for Up To $2.7 Million
Samurai & J Partners Co. Ltd. is hosted on Tokyo Exchange, and it was founded back in 1996, though it was known as Digital Design Co. Ltd. originally. They recently setup a subsidiary called Samurai Asset Finance, which works to support the cryptocurrency platform that they host. In a recent decision to help consumers take advantage of more opportunities in the industry, they have created a new entity via the subsidiary called Samurai Crypto Loan.
The Samurai Crypto Loan program allows investors in Japan to receive loans for up to 300 million yen, which is about $2.7 million USD. However, the investors that qualify will only include those that have a stake in Bitcoin, Ethereum, or Bitcoin cash, though the actual fees for these services will vary. There is no need to liquidate funds, which usually costs about 55% of the transaction as their fees.
This opportunity to take a loan appears to only be valid for one year, and the users will have to choose a loan amount between 20 million and 300 million yen ($179,000 to $2.7 million), though extensions will be offered for investors to pay back. The interest rates are as low as 7%, which includes both extensions and commissions. However, if the user goes past the due date with no extension filed, they risk a fee of 20% of the total amount borrowed, which could be as much as over half a million dollars, or around 60 million yen.
Samurai Asset Finance originally suggested this concept in May, which was approved after a presentation to the board of directors. According to news reports, this entity has also setup a new Samurai Asset Finance that will launch an initial coin offering (ICO), though dates have not been announced for this sale.
As innovative as this concept is, Samurai Asset Finance is unfortunately not the first platform to propose is, even in japan alone. Abic Corporation also said that they will offer loans to Bitcoin token holders, giving them between 2 million yen and 1 billion yen ($18,260 to $9.13 million). Their fees appear to be a little more user-friendly, depending on if the user is subjected to the 2.98% fee or if they qualify for the 15% fee. Any loans on this program have between one month to five years, but the delinquency charge is the same. There is not a clear policy on extending the payment.