Types of Repayment:
Partial Payment: You can repay a portion of your loan at any time. This will reduce the amount of interest you pay on a monthly basis. After a partial payment has been successfully processed, your LTV will be adjusted accordingly and the monthly payment will update to reflect within the following billing cycle.
Partial payments through the liquidation of collateral assets is possible, however, you will be required to liquidate enough collateral to lower the loan’s LTV by at least 10%. Our team of loan analysts can provide you with the exact figures regarding this request.
Full Payoff: You can repay the entire loan balance at any time, and the accrued interest you will be responsible for will not exceed further than the day you are paying the loan in full.
For all Scratch related inquiries you can reach their phone support at (844) 727-2684. Additional contact information can be found here
Methods of Repayment:
BlockFi offers various repayment options which have different collateral return speeds. The methods of repayment are listed below in order from the fastest processing time to the slowest processing time.
1. Collateral Liquidation: Sell a portion of the loan collateral to pay the loan in full (or partially) at the current market price, including trading fees (typically ~1%).
- Collateral Return Speed: Within (1) business day 1
- Process: Submit a support ticket here requesting a specific loan within your portfolio to be paid in full using the collateral held against it. Our team of loan analysts will reply confirming the loan’s payoff balance, along with a consent form that must be completed prior to execution.
- Timing: Liquidations are processed on a best-effort basis throughout the day. Sales are typically processed in as little as 10 minutes, but can also take up to a few hours if we are experiencing a high volume of requests. Once the sale has been executed, the excess collateral will be returned immediately. 1
1 Collateral will not be returned if there are any pending or failed ACH payments regarding any loan within the client’s portfolio. Pending payments typically take 3-5 business days. Failed payments must be resolved before collateral can be returned.
2. Use of Stablecoins: Transfer the amount needed into your BlockFi Wallet. At this time BlockFi only accepts USDC, GUSD, or PAX as a form of payment.2
- Collateral Return Speed: Within (1) business day
- Process: Submit a support ticket here requesting to pay a specific loan from your portfolio in full. Once the payoff balance has been confirmed, if needed please transfer the required amount into your BlockFi Wallet. Once your Wallet reflects the proper payment amount, please respond within the open ticket and we will process your request within the business day.
- Timing: Stablecoin payoffs are processed in three batches each day between 11am and 5pm EST. Your collateral will be returned after the corresponding batch of payments has been processed.
2 Please note that stablecoins purchased via instant ACH will not be available for use as payment for up to (5) business days, as BlockFi must allow time for the recently deposited funds to settle before use.
3. Wire: Send a wire transfer to Scratch to pay your loan in full.
- Collateral Return Speed: Within (2) business days
- Process: Login to your Scratch account to view wire instructions and the current payoff balance for the specific loan to be paid in full. Access your bank’s wiring portal to initiate the wire transfer to Scratch using the instructions provided. Your bank may charge a wiring fee which you are responsible for.
- Timing: Wires are typically processed within the same business day they are sent and received. Once processed your collateral will be returned by the following business day.
4. ACH: Link your bank account to your Scratch account via Plaid and pay your loan in full via ACH transfer.
- Collateral Return Speed: Within 5 - 14 Business Days
- Process: Login to your Scratch account and if you haven’t already, link your bank account to your account. Then, initiate an ACH payoff, which will take between 5 and 14 business days to clear between banks. BlockFi waits 4 business days after the funds are marked as “processed” within our bank before returning your assets. This wait time is in place to account for possible ACH failure and bounce back and cannot be expedited.
- Timing: ACH payment processing times vary between 5-14 days, which results in the extended timeframe for collateral return. The payment will be marked as “processed” on Scratch’s end, but that does not mean we have received confirmation of the payment. Please wait the entire 14 business days before submitting a support ticket.
Please note that once the funds have been received and are in the process of settling, the loan will be marked as “Paid In Full”. As a result of this, the account balance will decrease in value relative to the current value of the posted collateral. While the collateral is not lost and is still held by BlockFi, the value will be deducted from the account balance until the funds have settled. Once settled, the assets will be returned to your Wallet and the balance will update accordingly.