Colombian Fintech launches first crypto loan by DailyCoin

• Milo Credit expects to make the first $100 million in mortgage loans available to Colombians for homes purchased in the United States and other countries.
• Since the triumph of President-elect Gustavo Petros, the purchase of property abroad by Colombians has increased.

Colombian fintech Milo Credit announced the launch of the first mortgage in cryptocurrencies for customers interested in buying real estate in the United States. The company started the program with a limit of $10 million, but expects to raise the list to a total of $100 million within the year.

CEO and founder of Milo Credit Josip Rupena explained that they have observed a marked interest from Colombians in real estate projects abroad, even despite global inflation and the record increase in interest rates that have made loans more expensive.

The company was founded with the intention of serving a broad market oriented around real estate investments. Rupena noted that previously “investors only had two options: cash payments and high-interest loans in their home country.”

The CEO went on to call such investment options “risky”, because they “take away the opportunity for other potential investors” to invest. “We offer mortgages at competitive rates, from 6%”, assured the manager.

“Demand remains in very positive territory”

Since its launch three years ago, Milo Credit has provided mortgages to customers in more than 90 countries. “Every year we have doubled our business. In the last 15 months, roughly, we’ve processed $100 million in mortgages.”

As for the cryptocurrency mortgage offering, Rupena explained that Milo had already passed the first $10 million in loans. Mortgage placements are expected to increase to approximately $100 million as customers adjust to high interest rates and “demand remains in very positive territory.”

He clarified that there is a strong interest among Colombians in buying properties abroad. To the point that “Colombia is among the first five countries most interested in buying real estate in the United States.” This is especially true in cities such as Miami, Orlando and Tampa. Although Colombians have recently shown particular interest in other states, such as the two Carolinas and Texas, which are home to large Latino populations.

Alternatives for crypto loans

“When property markets abroad lower prices, that’s when we see more activity from international buyers, because they think they can get a better deal,” explained Rupena. The loans that Milo makes in crypto are made directly, eliminating the need for financial intermediaries. After a client prequalifies for a loan, a real estate agent shows them the property they want to acquire.

Likewise, those who already own property with a signed purchase contract are also entitled to apply for a loan. Furthermore, the company ensures that sensitive data relating to the customer’s income or tax certificates in Colombia is not necessary.

On the other side

• Following the presidential victory of Gustavo Petro in the June 17 election, Colombian real estate purchases in the United States skyrocketed.

The Colombian Chamber of Construction (Camacol) estimates that 256,000 new homes will be sold this year. Approximately 186,000 of these homes are of social interest, representing a combined annual market growth of 7%.

Why you should care

• The cryptocurrency market in Colombia is one of the most prosperous in the region, which may explain Milo Credit’s commitment to crypto mortgages.
• Without neglecting reports from the South American country about the circulation of large volumes of dollars and digital currencies via drug trafficking.

Continue reading at DailyCoin