Interest rates around the world are subject to a massive inequality.
Countries like Japan have interest rates around 1%, whereas other countries such as Brazil have rates approximately 50%. View other countries interest rates here. Lendoit is providing a decentralized, peer to peer solution for this global problem. People who live these countries who experience a high-interest rate can now recieve loans at a fraction of the cost, sourced from people around the world. This system will also benefit the lenders, who can increase the amount in their portfolio at a steady rate. This will all occur on a platform that has no central authority, where rates and loans are governed by the automated smart contract.
How it works:
As a borrower: The borrower submits their information for review, and a standardized third-party “credit score” is assigned to them. The borrower can then choose what amount he wishes to borrow and at what rate. His personal information is kept private, only his credit score is visible.
As a lender: Lenders have the ability to pick and chose which borrowers they wish to lend to. Lenders can choose to fund users who have favorable credit scores, strong reputations, and competitive interest rates.
Is it safe? What if a borrower defaults on their loan?
CEO, Ori Erez explains in the interview below that if a loan is defaulted upon, the majority is sold to a collection agency on behalf of the lender. The remainder is covered by the insurance policy that accompanies each loan for less than $5usd per loan.
Jeff Kirdeikis of CryptocurrencyInvesting.com interviews with CEO Ori Erez of Lendoit
What is the utility of LOAN tokens?
● Lending access: Lenders must hold 10% in LOAN tokens of the amount he desires to lend.
● Borrowing access: Borrowers must send LOAN tokens as a fee to publish the Smart Contract on the Blockchain.
● Provider access: Credit score and information verifiers pay an annual fee in LOAN tokens.
● Collections access: Collectors pay in LOAN tokens to Lendoit for providing collection information (address, borrower details, etc.)
● All fees charged by Lendoit are in LOAN tokens – When Lendoit collects fees from the Smart Loan Contract, the process occurs via the Smart Conversion Contract automatically and is paid in LOAN tokens.
●All interest payments shall be paid to the lenders in LOAN tokens – When the lenders withdraw their yield from the Smart Loan Contract, the process occurs automatically via the Smart Conversion Contract.
Who are the “competitors”?
LendingClub: Lending within the same country and in that country’s currency.
BTCPOP: Peer-to-peer lending is based on reputation and not on credit score.
ETHLend: ETHLend does not generate credit scores, nor does it offer a Compensation Fund to protect lenders.
SALT: Fiat Using Cryptocurrency as Collateral for loan amounts higher than $5000. Only accredited investors and qualified financial institutions can become lenders on SALT.
Lendoit’s alpha version has been up and running since September 2017.
Users can currently request and offer short-term microloans ranging between 15-90 days in cryptocurrencies.
Lendoit is having their token generation event this December. You can find out more and participate at https://lendoit.com/
All information contained within this article is of personal opinion and is no way solicitation, investment or legal advice. This article is a sponsored post and is not an endorsement of the team or project. It is not a verification of the specifics or claims of the project. This article is not investment, accounting, or legal advice.