This is our (Apoorv Jain & Shashvat Mohane) submission for JIO blockchain hackathon. We have called our micro-lending platform LENDEN as in taking/giving something to someone in hindi. Which also refers to the two major funcitonalities of our platform - LENding & DONating.
Following is the architecture we have defined for our system.
Bank gives 4-6% interests on our deposits while charging 15-18% on personal loans, we want to eliminate this gap completely.
It is easy to deposit money with the banks but equally difficult and a very time consuming process to borrow from them, we want to save people from the hassle while saving their time.
Usually large amounts and a lots of documents are required to deposit or to take a loan from these centralized institutions, we want to build a micro lending platform where a person may lend/borrow even an amount as low as Rs.100 without involving any credit rating agents in between, solely on the basis of user ratings calculated on the smart contract.
We propose a P2P lending platform where both lenders and borrowers can submit their respective requests and/or fulfil i.e, lend or payback money, each others requests without any third party intervention via a Decentralised Application accessing a smart contract on Ethereum network.
We will build a smart contract enabled platform, a decentralized application where anyone can register and start lending or borrowing money. As part of their registration they will be required to get themselves KYC verified via ADHAAR card so that in future when we have a defaulter it's easy to identify them and take actions against them as all of the transaction history will be stored on the blockchain attached to their registered address.
Anyone can create/fullfil a lend/borrow request via smart contract functions. As a measure of a users credibility every user will be rated on the basis of their borrowing activity and on-time/delayed paybacks to the lenders. User ratings will also be given only when asked to give by a particular person for another particular person if/when they are unable to decide for themselves.
Our rating system eliminates the need of a credit rating agency/agent while no limitations on posting lend/borrow request brings financial freedom letting users decide at what rate, for what time and amount they want to lend/borrow money, hence eliminating the interests gap that exists between the deposit/loan interest rates in present financial system. Also allowing people to carry out the same activity with an amount not restricted by the lower and upper bounds.