How do I payoff my loan? (Domestic/US Loans)

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 and the interest you pay will be what has 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. Collateral Liquidation: Sell a portion of the crypto collateral to pay off the loan at the current market price less trading fees (typically ~1%).
   1. Collateral Return Speed: Same Business Day
   2. Process: Submit a support ticket requesting your specific loan ID be paid off using the collateral held against it. BlockFi will reply confirming the loan’s payoff amount and a typeform the client needs to fill out providing consent for the collateral sale. 
   3. Timing: Liquidations are processed on a best-effort basis throughout the day so the sale can be processed in as little as 10 minutes, but can also take up to a few hours. The excess collateral will then be returned immediately after the sale is completed.
      
      
2. Stablecoins: Use one of your BlockFi stablecoin balances to payoff your loan
   1. Collateral Return Speed: 0 - 1 Business Day
   2. Process: Check your Scratch account for today’s payoff amount and then deposit that balance into one of your BlockFi stablecoin wallets (USDC, GUSD, PAX). Once your BlockFi account reflects the deposit, submit a support ticket requesting the specific loan ID be paid off using your BlockFi stablecoin balance.
   3. Timing: Stablecoin payoffs are processed in three batches each day: ~ 11 AM EST, ~ 2 PM EST and ~ 5 PM EST. Your collateral will be returned after the corresponding batch of payments has been processed.
      
      
3. Wire: Send a wire transfer to Scratch to payoff your loan
   1. Collateral Return Speed: 1 - 2 Business Days
   2. Process: Login to your Scratch account to find their wire instructions and the specific loan’s payoff amount. Access your bank’s wire portal to initiate the wire transfer to Scratch using those instructions and please be mindful of the wire fee your bank may charge.
   3. Timing: Wires are typically processed on the same business day they are sent, so once we have the funds, your collateral will be returned the following business day.
      
      
4. ACH: Link your bank account on Scratch via Plaid and payoff your full loan balance via ACH transfer.
   1. Collateral Return Speed: 7 - 14 Business Days
   2. Process: Login to your Scratch portal and if you haven’t already, link your bank account with them. Then, initiate an ACH payoff, which will take between 5 and 10 business days to clear between banks. BlockFi must wait at least 96 hours after the funds are marked as “processed” on our bank before returning your crypto. This wait time is in place to account for ACH failure and bouncebacks.
   3. Timing: ACH payment processing times vary between 5-10 days, hence the long 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 full 14 business days before submitting a support ticket.
   4. Note: The balance on your account will decrease in value equal to the collateral held in the loan that was paid off via ACH. This is because loans that are marked as “Paid in Full” are closed, so the system doesn’t include the collateral in the account balance calculation. Please rest assured your crypto has not been lost and will be safely returned in the timeline described above.