This time we will talk about a project focused on financial services, specifically loans, whose ICO has been active recently, it is CoinLoan.
CoinLoan is defined as an innovative project that combines the traditional banking system of loans and modern cryptocurrency technology. Access to cryptocurrencies has involved recourse to fiduciary money and exchanges. This usually leads to a loss of potential income due to a higher appreciation of the cryptocurrency and additional financial costs, associated with the rates in the exchanges and temporary, from the moment of the sale of cryptoasset to the actual receipt of fiduciary money.
The CoinLoan project offers an alternative. On such a platform a cryptocurrency holder can obtain a loan in fiat money on the security of their cryptoasset. Before the end of the loan period, the security deposit will remain in the protected CoinLoan system. Once the loan and interest are paid within the agreed period, the pledged asset will be returned to the borrower in full.
CoinLoan aware of this offers a different approach: its users will be able to receive real money in any available currency guaranteed by cryptoassets. The system will select the most appropriate option for the borrower from the set of counteroffers for loans. The loans will be issued without verification of the creditworthiness of the borrower, without requests for processing by the loan center and other formalities typical of the traditional banking system. The user will receive fiduciary money almost instantly.
Also the users of the platform will be able to request a debit card with delivery around the world. Borrowers can instantly receive trust funds in trust money or use it according to their needs: withdraw funds at ATMs, pay through terminals, buy online. CoinLoan will accept the following guarantee for the loans: Bitcoin, Ethereum, Litecoin, Ripple, Monero, Zcash, Dash.
CoinLoan guarantees the repayment of the funds in full along with the interest to use the loan and dispenses from the lender, thus freeing it from additional actions and risks. As a result, the borrower will receive the lowest interest rate and will not waste time signing documents, going to the bank, waiting in a row and performing the property evaluation. There is no need for a credit center with this approach. This gives advantages to both parties in the deal: the lender does not need to assess the risks independently, the borrower receives a loan regardless of the credit record.
CoinLoan has issued a token called CoinLoan Token (CLT) in the blockchain of Ethereum using the intelligent contract ERC20 during the ICO. This token will serve as the single currency for settlements within the system on the CoinLoan platform. The main task of the CLT is to pay fees for giving or obtaining a loan. Investors who purchased the tokens in the Pre-ICO and ICO stages will be able to borrow bank guaranteed loans with no commissions for the system. In addition, it will be possible to reduce the interest rate to obtain a loan by offsetting part of the rate with a CLT.
To know more details about this platform, you can check their White paper.