Bank Peer To Peer Money Lending
A blockchain POC implementation to connect Lenders with vendors (who require loan) in a transparent, quick and secure way.
Connect Lenders to vendors.
Automate the credit & debit process between multiple untrusted parties.
Minimise the default risk on loan amount.
Peer to peer lending hub (P2PLH) utilizes blockchain technology to reduce costs and offer borrowers better rates and investors better returns. Imagine having an invoice to be paid to the vendor, and based on the credibility of your business, you have the proposals in real time and within hours having your loan approved for funding.
PwC’s analysis indicates the market could reach $150 billion or higher by 2025.
Players on the platform & brief process
- Lender: All NBFC license holders, who will lend money to the Vendor
- Vendor: Who need an immediate payment for the product/service they offered to a company or organisation and for which they have received the delivery note.
- Certificate Authority: The organisations who will have the right to issue the the certificate to Lenders and Vendors to trade on P2PLH system. For now we are assuming that, this will only be the Bank.
- Service Receiver: That received the product/service from the vendor. They issued the Delivery note, however payment is due to vendor.
- The Vendor uploads the delivery note and Invoice to the blockchain, to seek a loan. Once the delivery note is validated by the Service Receiver, the vendor can receive the loan immediately from the P2PLH system.
- The amount received by the system from the lender will be split into micro payments and distributed to various loan seekers to minimise the risk of default.
- Once the Service Receiver releases the payment, it will be processed by the smart contract and the payment (Principal + Interest) will automatically be credited to Lenders account and the balance will be credited to the vendor account.
High Level System Architecture
All the players will interact with the system through a web interface. The interface will communicate with smart contract through RPC/Web-sockets. Hyperledger validating nodes will be responsible to execute the smart contract and update the state changes to blockchain. The Hyperledger CA Node (Certificate Authority node) will be responsible to issue the certificate to access the blockchain by players.