What is a Flash Loan?
A flash loan is a new type of unsecured loan where the borrower receives funds, uses them productively, and returns them instantaneously. This is different from standard loans where borrowers must provide documents and collateral, and then repay the loan over a longer period.
**Here are some of the reasons flash loans are popular.**
- No Collateral – As an investor, it is easy to acquire flash loans as you do not need to hold crypto as collateral. You are not at risk of losing your funds through flash loans.
- Instantaneous – Flash loans provide you with quick access to liquidity. This cannot be matched by traditional loan facilities, thus making flash loans unique.
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