How to Payoff or Refinance Your Crypto Loan

Domestic Clients

Types of Paybacks: 

Partial Payback: You can pay back a portion of your loan at any time. This will reduce the amount of interest you pay on a monthly basis. 

Full Payoff: You can pay off your entire loan balance at any time. For loans with monthly payments, you will only pay the interest accrued through the date you pay off.

For all Scratch related inquiries, you can reach their phone support at (844)727-2684. Additional Scratch contact information can be found here.

How to Payback Your Loan:

We offer various repayment options which have different collateral return speeds. Our payback methods are listed below in order from fastest processing time to slowest processing time:

  1. Pay back with crypto: 
    1. Collateral Return Speed: Same Business Day
    2. Process: Reach out to a team member about paying off your loan using crypto prior to your maturity date. BlockFi will confirm your loan balance. You will then have 2 options:
      1. Pay off your loan balance in stablecoin (PAX, USDC or GUSD). We receive these funds within 10 minutes and are able to release your crypto within an hour, during business hours.
      2. Collateral liquidation: Pay off your loan balance by liquidating the crypto quantity needed to pay off your loan at the current market price less trading fees (typically ~1%). BlockFi will then return the remaining collateral to a wallet address of your choice.
  2. Wire
    1. Collateral Return Speed: 1-2 Business Days
    2. Process: Send a wire to your loan processor, Scratch
    3. Timeline: Once your wire is processed, typically on the same business day it is sent, we will return your crypto back to the wallet address of your choice
    4. Note: Your bank may charge you wire fees
  1. ACH: 
    1. Collateral Return Speed: 5-10 Business Days
    2. Process: Make your full payment through your Scratch portal. This will initiate an ACH to the bank account you have connected to Scratch. ACHs take at least 5 business days to clear between banks.
    3. Note: For compliance purposes, BlockFi must wait at least 48 hours after the funds are marked as “processed” on Scratch before returning your crypto to the wallet address provided. This wait time is in place to account for ACH failure and bouncebacks.

International Clients

Types of Paybacks: 

Partial Payback: You can pay back a portion of your loan at any time. This will reduce the amount of interest you pay on a monthly basis. 

Full Payoff: You can pay off your entire loan balance at any time. For loans with monthly payments, you will only pay the interest accrued through the date you pay off. 

Note that the payoff process for international loans will vary based on international banking considerations. How to Payback Your Loan:

We offer various repayment methods will have different collateral return speeds. Our payback methods are listed below in order from fastest processing time to slowest processing time:

  1. Pay back with crypto: 
    1. Collateral Return Speed: Same Business Day
    2. Process: Reach out to a team member about paying off your loan using crypto prior to your maturity date. BlockFi will confirm your loan balance. You will then have 2 options:
      1. Pay off your loan balance in stablecoin (PAX, USDC or GUSD). We receive these funds within 10 minutes and are able to release your crypto within an hour, during business hours.
      2. Collateral liquidation: Pay off your loan balance by liquidating the crypto quantity needed to pay off your loan at the current market price plus trading fees (typically ~1%). BlockFi will then return the remaining collateral to a wallet address of your choice.
  2. Wire
    1. Collateral Return Speed: 1-2  Business Days
    2. Process: Reach out to support@blockfi.com. We will confirm your full payoff amount and send you wire instructions. You will then send a wire to BlockFi for the full payoff amount
    3. Timeline: Once your wire is processed, typically on the next business day it is sent, we will return your crypto back to the wallet address of your choice
    4. Note: Your bank may charge you wire fees

Refinancing


At any point in time, you have the option to refinance your loan. You may want to refinance in the following scenarios:

  1. You want more time to pay off your loan: 
    1. By refinancing your loan, you can extend the maturity and move your loan’s payoff date back in time
  2. You want to draw more cash because the value of your crypto has increased:
    1. If crypto prices are higher than when you first took out your loan, you can refinance you loan to access more USD. The amount of crypto you have posted with BlockFi will stay the same,  and you will receive more USD for the value of crypto posted
    2. For example, if you took out a $10,000, 50% LTV loan when the price of BTC was $6,000 and the price of BTC doubled to $12,000, you would be able to double the size of your loan to $20,000. In this instance, $10,000 would be used to pay off your old loan (including any fees and interest owed) and the remaining $10,000 would be funded directly to you
  3. You want to release some of your crypto because the value of your crypto has increased:
    1. If crypto prices have gone up, you can post less crypto on a refinanced loan of the same amount of USD
    2. If your LTV is below 25% we can send any excess crypto back to you with no refinancing needed. We can release enough crypto move your loan up to a 25% LTV with no new loan documents needed
    3. Your excess collateral can either be sent to you or deposited into a BlockFi Interest Account to earn interest.
    4. Note that your excess collateral must be at least 1 BTC or 25 ETH. This does not apply to loans that originated at a 20% LTV.

Below are the steps to refinance:

  1. Refinancing: 
    1. Collateral Return Speed: Same Business Day
    2. Process: Apply for a new loan based on the amount of crypto you have posted with us. Email support@blockfi.com and let us know that you would like to use the proceeds of your new loan to repay your existing loan. We will be able to make any necessary changes to your loan offer on our end.
    3. Note: Refinanced loans are subject to a new origination fee. OF may be discounted if your loan was originated in the last 60 days

BlockFi lets you use your Bitcoin, Ether, and Litecoin to do things like buy a home, pay down debt, or even fund your business without having to sell your crypto. Start your application now and get funded in as few as 90 minutes.

Disclaimer: Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and BIA accounts are riot subject to FDIC or SIPC protections. Security is our top priority. Please see our Vulnerability Disclosure Form and Bug Bounty Program.
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Disclaimer: Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and BIA accounts are not subject to FDIC or SIPC protections. Security is our top priority. Please see our Vulnerability Disclosure Form and Bug Bounty Program.
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