Types of Paybacks:
Partial Payback: You can pay back a portion of your loan at any time. For loans > $50,000, this will reduce the amount of interest you pay on a monthly basis. Please note, we are unable to process partial payments via collateral liquidation.
Full Payoff: You can pay off your entire loan balance at any time. 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. Payoffs can only be processed on weekdays during business hours (Monday - Friday)
Please also note that all international loans are serviced by BlockFi so you will not have an account set up with Scratch. All payments go through BlockFi.
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:
- Collateral Liquidation: Sell a portion of the crypto collateral to pay off the loan at the current market price less trading fees (typically ~1%).
- Collateral Return Speed: Same Business Day
- 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.
- 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.
- Stablecoins: Use one of your BlockFi stablecoin balances to payoff your loan
- Collateral Return Speed: 0 - 1 Business Day
- Process: Submit a support ticket requesting today’s payoff for a specific loan ID and once we confirm, deposit that balance into one of your BlockFi stablecoin wallets (USDC, GUSD, PAX). Once your BlockFi account reflects the deposit, reply to the same ticket and we will process the payoff.
- 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.** Please note, stablecoin funds purchased via instant ACH will not be available to use as loan payment for 5 business days as we must wait for the ACH hold to clear before processing.
Wire: Send a wire transfer directly to BlockFi to payoff the loan
Collateral Return Speed: 1 - 2 Business Days
Process: Submit a support ticket requesting the payoff amount and wire instructions and we will follow up with both. Please let us know once the wire has been sent and we will inform our finance team to look out for it. Please note that international wire transfers usually have higher fees.
Timeline: Once your wire is processed, typically on the next business day it is sent, we will return your crypto back to your Interest Account by the end of the day.