For the vast majority of people living, traditional loans are inaccessible. This could be for a multitude of reasons such as people being unbanked, or because most of their income is held in either their possessions or in crypto. However, with crypto loans, more people are able to borrow money, giving them the necessary leverage to start their lives. Loans are an important problem solving tool for tons of people, helping with education, healthcare, and overall quality of life. This makes crypto loans a deeply significant alternative to their traditional fiat counterparts.
Crypto loans are useful in economically deprived areas
By far the largest demographic of people who cannot access traditional financial tools (also known as people who are unbanked) are located in places that are economically deprived; meaning they are lacking economic support. It also includes places where the hurdles it takes to be rewarded with financial tools is too hard to reach due to societal factors. For instance, in Sierra Leone, only 20% of the population have a bank account, and in South Sudan, only 8.9% do. This does not mean that only 8.9% of people there own any wealth, but rather that only a small number are able to appreciate all the benefits of banking that comes with that wealth.
However, with the introduction of crypto loans, unbanked people are finally able to borrow money without having to worry about their banking situation. This might not seem like much, but loans are extremely helpful for people who desperately need to pay for education or healthcare, or who are having current cash flow issues. They are such an omnipresent part of Western living that sometimes it is hard to realise their significance, but for those who cannot get access to a bank, they know all too well just how needed they are.
Loans can help forward people’s lives
Loans are often a stepping stone in people’s lives. Student loans are a stepping stone towards higher education. Mortgages are a stepping stone towards building a home and a family. Healthcare loans are a stepping stone towards an improved quality of life. These are some of the biggest and most significant forms of loans that exist, and most people in Western countries will partake in at least one of these over their lifetimes. However, people who cannot access traditional financial tools may never be able to, and this is detrimental to their life experience. Loans can be an effective means of escaping poverty, but people who are ignored by traditional financial corporations are usually left hanging. For these people, crypto loans are a saving grace, one that helps them live their lives as fruitful as possible. Crypto loans can help with housing, healthcare, education, and practically any financial situation; they are the perfect alternative to traditional finance that people from all around the world can partake in. This means that crypto loans can be a great stepping stone for hundreds of millions of people who are unbanked and unable to take out any other types of loans.
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