At BTCJam, we want to make sure that borrowers and lenders are having a good experience with using our service. Lenders are trusting borrowers with their bitcoins and if they are not paid back, the whole P2P lending system does not work properly. We came up with a few helping questions that borrowers should ask themselves before taking out a loan.
Before you post a loan, you should ask yourselves the following questions:
How will I pay back this loan?
Do you have regular income to pay back this loan? Do you have any assets such as: stocks, a vehicle, or something else that you could sell in case you are able to pay back?
Make a detailed repayment plan, on paper or in Excel, where you calculate exactly when you will get your salary, when you have to pay rent, food, etc and also when your BTCJam installments are due.
How much interest can I afford to pay?
Make sure you plan ahead. You will have to pay back the principal plus interest. Don’t go with too high of an interest just to get funded quickly. Use an interest rate that you can realistically pay back with your resources. Also don’t go too low or otherwise investors will consider you an unattractive investment.
Do I have an easy way to convert bitcoin into my local currency and back?
Once your loan is funded, you will receive your bitcoin on BTCJam. Now you need to convert the bitcoin into your local currency so you can purchase whatever you need the loan for. Check if there is an exchange in your country so you are able to withdraw the loan for your own use.
Here is a list of all Bitcoin exchanges around
Once you have honestly about those questions and you have decided that BTCJam is right for you, create your loan listing and get funded!