The lending business comprises of about 90% of the employment of the informal market in many countries. But in the present economy, lenders find it very difficult to provide credit facilities to small borrowers due to lack of proper data and documentation records to evaluate their credit worthiness. As a result of which most of the small-time businessman can’t borrow from the traditional financial institutions. For example, a small grocery store owner may use different digital systems like mobile wallet or debit or credit cards to pay for his transactions. Now these financial details may prove his creditworthiness, but are invisible to the traditional financial lenders or institutions. So, though the grocer may have a very profitable business, but he has to get financial aid from family, friends, and relatives or from small lenders but at high interest rates. Moreover, the lending process is time consuming and complicated and many lenders do not want to take the risk to lend small-time businesses as they are worried about the repayment of their loans.
Introducing LendLedger, based on Stellar Blockchain which will bridge the gap between small business and lending institutions.
What is LendLedger?
The LendLedger is an open lending network that uses Blockchain technology to create a trustworthy platform where all information is recorded in a public ledger securely. It is a completely decentralized system and is not regulated by any central authority. Open APIs connects the parties in the network and allows them to share data, disburse loans, make payments through peer-to-peer mechanism. All data is encrypted and kept private and only shared during transactions between parties. Lenders connect to specialized Credit Evaluators or CEs who make loan decisions, amount, time, and terms of loans. Their decision is then submitted to the loan smart contract and the loan is disbursed to the borrower.
L-Data is a software tool on the ecosystem for data providers that record all transactions on the system and also process fiat transactions and L-Lend is the software tool for lenders. All the transactions are recorded in real-time.
Features
- Borrowers now have access to numerous numbers of lenders at competitive rates.
- Lenders now can access a previously untapped market.
- Borrowers have full power to share and control their data securely.
- The open APIs standardize the system by decentralizing it.
- An ecosystem built on trust both from the borrowers and the lenders point of view.
- A common platform connecting borrowers, lenders and data providers.
- A public Blockchain ledger makes all the transactions transparent and secure.
- Every transaction is recorded in Blockchain with unique identifier of the participant. So it builds a reputation of the borrower, lender as well as DPs which is visible to all.
- All the financial transactions are permanently recorded in the ledger.
- All credit data of borrower is kept strictly confidential and is only visible to the interested parties.
- The system is open to all.
- The Loan Digital Asset is the loan Tokens of the system.
- All the encrypted data is verified for its genuineness and validity.
- It eliminates intermediaries and any central authority.
- The system is inexpensive and cost of transactions is low as compared to centralized systems.
- A very simple interface which anybody can use and does not require technological expertise.
- An opportunity of growth for small business sectors.
LendLedger ICO Details:
- Token: LOAN
- Plateform: Steller
- Accept: ETH
- Countries Not Allowed: U.S., UK and China
LendLedger was created in Arth Labs, an Indian company and is the brainchild of Gautam Ivatury and Manish Khera, the co-founders of the company. The main vision was to change the present scenario of lending in the informal market and to tap the huge untapped resources which were earlier invisible through the ecosystem. It even aims to work in the rural and more undeserved sectors of the economy. The company has by far worked across 400 cities in India and aims to cover even more.
Borrowers in the informal sector and small businesses face many challenges when they try to borrow credit from formal lenders. They are required to have a good credit record from banks and other institutional lenders. They also need to have the right documentation to obtain loans. The procedures to get loans are also too burdensome especially for small traders and there is also the risk of obtaining loans from lenders who have onerous terms. The result is a multi-trillion dollar lending gap.
The LendLedger Solution
LendLedger hopes to be the solution to these problems by opening up global lending markets. The platform is changing the face of lending to the underserved segments. Already this platform has processed tens of millions of dollars in loan requests in India, which has led to the provision of loans to hundreds of thousands of borrowers in the informal and small business sectors in 40 Indian cities. This platform is opening up new financial markets across the globe.
How LendLedger Decentralized Blockchain Crypto Lending Market Works
The platform unlocks data on informal and small business borrowers making it possible for lenders to offer loans to the informal traders. LendLedger seeks to bridge the $2.6 trillion lending gap between the institutional lending capital and informal borrowers. The aim of the platform is to come up with a lending market that is both inclusive and profitable for all the participants.
All this is possible thanks to blockchain technology. The technology allows for every detail of the transaction on the ecosystem to be recorded in real time. LendLedger connects borrowers, lenders, and data providers to allow for secure, cost-effective, transparent and innovative interactions.
With LendLedger borrowers have access to their own data. They can also control the data or share it with lenders. The use of blockchain and API by the platform standardizes how data providers and the lenders collaborate.
The open API suite allows the LendLedger network to function in a secure and open way. The protocol defines the functioning of the LendLedger ecosystem in terms of how data is sent to the participants, how the smart contract works, what is recorded in the blockchain among other functions. The open API replaces some of the functions done by intermediaries and does away with the need for a centralized system.
LendLedger Advantages
The LendLedger network offers the below advantages to its users.
Trust
The use of blockchain technology does away with the need for an intermediary party such that each party is in full control of their encrypted data and transactions. This makes the platform trustworthy. Anytime a contract is executed on the blockchain, information is recorded in the public ledger. There is no need for a central administrator. Any information logged to the blockchain is public and permanent, which allows for accountability.
Seamless
The platform connects data providers, lenders, and borrowers in one reputation-building platform. Anyone from any location in the world can be a part of this ecosystem.
Transparent
The use of blockchain technology allows for all transactions that should be transparent to be publicly available on the blockchain while maintaining the confidentiality of the identifying information and the confidential data of the users. In case of any disputes, the transactions and transfers can be easily viewed on the public ledger.
To know more please visit-
Website: http://www.lendledger.io/
Author:
Bitcointalk Username: adifx
Bitcointalk Profile URL: https://bitcointalk.org/index.php?action=profile;u=1502350
Telegram: Telegram url: https://t.me/soaib_hossain_sohag
ETH WALLET: 0x71123E62201060fC3155AF4E4c752AC3659DDECA
STELLER WALLET: GDE3TBLQXBTISQRM42EDSPNC7ZNDHBWIX7MUTDOLLNHZBFJ3TRMLEQVB
Email: soaibhossain.bdpro@gmail.com
Bitcointalk Profile URL: https://bitcointalk.org/index.php?action=profile;u=1502350
Telegram: Telegram url: https://t.me/soaib_hossain_sohag
ETH WALLET: 0x71123E62201060fC3155AF4E4c752AC3659DDECA
STELLER WALLET: GDE3TBLQXBTISQRM42EDSPNC7ZNDHBWIX7MUTDOLLNHZBFJ3TRMLEQVB
Email: soaibhossain.bdpro@gmail.com
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