- IEG Holdings plans to create its own gold metal-backed cryptocurrency for consumer loans and consumer loan repayments
- The company’s loans offer interest rates that are significantly lower than payday lenders
- Adoption of blockchain technology offers substantial growth potential
On January 10, 2018, consumer loan provider IEG Holdings Corp. (OTCQB: IEGH) announced that its wholly owned subsidiary, Investment Evolution Crypto, LLC, is negotiating to purchase a gold project with prospecting licenses and known gold resources. The corporation plans to use a gold resource for the creation of its own gold metal-backed cryptocurrency, with a view to offering loans and accepting loan repayments through blockchain technology. Investment Evolution Crypto has not started mineral operations as yet, but it is currently developing plans to explore these crypto/blockchain opportunities. These efforts will include an evaluation of the legalities and associated economic risks.
Unlike other digital currencies like bitcoin, ether, Ripple and Litecoin, IEG Holdings’ cryptocurrency will be backed by gold and registered with the Securities Exchange Commission (SEC) as a security.
In a news release, the company’s chairman and CEO, Paul Mathieson, had this to say about the venture: “We believe potentially combining the exciting new blockchain technology with the hard asset of gold metal, expected SEC registration, a leading sophisticated online consumer finance system and individual U.S. state lending licenses is a very exciting proposition. In addition, we believe the future leaders of the crypto/blockchain sector will be companies that are materially compliant with all the existing and future related U.S. government legislation. We aim for IEGH to leverage off its existing fintech business credentials, specifically its extensive experience in online consumer loans, to potentially be a key player in the crypto/blockchain sector.”
IEG Holdings, based in Las Vegas, is a global leader in consumer finance and provides small-sized online personal loans to consumers in the United States. Through its operating subsidiary, Investment Evolution Corporation, the company offers loans under the brand “Mr. Amazing Loans.” Mr. Amazing Loans is a fintech company that specializes in providing loan amounts of $5,000 to $10,000 to consumers through a professional, user-friendly website. IEG Holdings’ loans are unsecured consumer loans with a five-year maturity period and interest rates that are significantly lower than payday lenders.
Through Mr. Amazing Loans, consumer loans receive same-day processing, with no prepayment penalty and no hidden or additional fees. Repayment interest rates are fixed at an annual percentage rate (APR) of 29.9 percent or less for the life of the loan.
According to the Center for Responsible Lending, typical payday lenders charge interest rates ranging from 391 percent to 521 percent APR on loans from $100 to $1,000 (http://nnw.fm/iH8Y8). Terms presented by Mr. Amazing Loans offer low fixed repayments which fit into consumer budgets in an effort to ensure that they strengthen their financial positions. Loans may be approved on the same day of application, and funds are deposited directly into approved consumers’ bank accounts.
IEG Holdings is licensed and/or holds certificates of authority to originate loans in 20 states, including Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Louisiana, Maryland, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon, Pennsylvania, Texas, Utah, Virginia and Wisconsin. All loans are processed and serviced through the company’s corporate offices in Las Vegas, which eliminates the need for physical offices in each state where the company is licensed to conduct business.
While IEG Holdings’ primary goal is to create its own gold metal-backed cryptocurrency, it will explore the acceptance of established digital currencies, like bitcoin, for consumer loan repayment. With its foray into the rapidly growing blockchain space, 2018 promises to be a year of substantial growth for the company.
For more information, visit the company’s website at www.InvestmentEvolution.com
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