Problem statement : We wanted to create a platform based on blockchain wherein any user , with or without cibil score with a particular bank can take loans based on previous transactions on our platform . Let me give you an example use case , People who immigrate from one country to another have problems in getting money from banks and other financial institutions as they are not having any assets and no cibil score . So, here we come into action by providing them loans .
HOW IT WORKS :
So if you are someone looking for a loan you can simply signup , put your credit card details , and put up your listing on our platform showing that you are looking for a loan for a particular tenure and for a particular amount , then people who want to invest and earn more through rate of interest would bid on your listing , there will be a bid war for a specific time and the user who wanted the loan has the opportunity to deicide who he wants to take loan from , hence giving him the upper hand , which is unlike the conventional system .
If you are an investor looking for places to invest with your cryptocurrency and generate more crytocurrrency , you come to our platform look for people who want a loan , check their backgrounds ,details they have provided , check their score on our platform , check how regular they have been in paying their previous loans and installments and finalise on soemone they want to invest in . When the tenure passes the loan amount gets transferred to the investors account from the user`s account through smart contracts automatically .
Okay let me show you a working model we were able to hack during the last few hours .
The platform is blockchain based because we wanted to make all the transactions open source ,secure and visible to everyone . The reason for using blockchain is the investor can track each transaction of a particular user , see how regular they are in paying the installments and then decide if they want to grant a loan or not .
Also we set threshold limits for users according to their score on our platform , for example there is this guy gopal who has 0 credit score on our platform , he would be allowed to only take a loan of a small amount , gopal will take that loan ,repay it , build up his credit score to slowly increase his reputation on our platform and make him look more reliable . We could also take KYC details to bring more credability .
So the advantage for the user is that he is able to take loans without involving a third party or without a credit score and the advantage for lenders is he is able to increase his coins without mining or other laborius stuff .
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