A P2P crypto lending exchange has changed the dynamics of the financial market as it connects a borrower and lender directly by eliminating intermediaries.
Since all the transactions occur through the blockchain network, security, reliability and transparency are ensured.
Flexibility is ensured in disbursal of the amounts needed and fixation of the time duration of the loan. It will have to be repaid along with a pre-determined interest rate which is calculated by the exchange.
How a P2P crypto lending exchange works?
Borrowers can be either an individual or an entity. Unlike banks, the borrower’s credit rating is not analyzed. This leads to a higher demand in the market. The lender will most likely be an individual and will offer funds to the most needed parties on a priority basis. Both borrowers and lenders would be required to create their respective profiles on the platform.
Details to submit in a P2P crypto lending exchange
Both the borrower and the lender will have to submit information such as their name, phone number, address, bank account details, ID proof and type of investment intended to make. The lender should specify what kind of borrowers he wants to deal with. The borrower has to submit collateral which can be in the form of legal documents, crypto coins or guarantor. The matching engine will take into account the needs of the borrower and the lender and determine the terms and conditions. The two parties will discuss the agreement. The loan request can be accepted or rejected by the lender. Once the duration ends, the loan is repaid along with interest by the borrower to the lender. In case there is a delay in repayment, the lender has the right to recover the loan amount by selling the collateral pledged by the borrower in the open market.
Some of the benefits offered are lack of a credit check, lower interest rates, streamlined process and flexibility in repayment.
Hence make maximum use of the rising popularity by acquiring a customized P2P Crypto lending exchange from Blockchain App Factory.
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