Decentralizing MFI and Financial Inclusion through DeFi
Decentralizing MFI and Financial Inclusion through DeFi
Blockloans is a scalable MicroFinance (MFI) Decentralized Finance (DeFi) App solution for developing markets that allows borrowers to obtain small, instant microloans using limited collateral at <10% APY. Now, two billion people worldwide who cannot access financial services because their financial repayment history is not held on ‘traditional’ sources will have access to microloans without extortionate payday loan fees, interest rates or other fees.
A Borrower creates or uploads their Self-Soverign Identity (SSI) in the BlockLoans Wallet
A Borrower transfers 50% of their collateral (if a secured loan) from their Wallet to the DeFi Lender
A Borrower recruits 5 individuals into their Family Collateral Circle to transfer a combined 50% of their collateral (if a secured loan) to the DeFi Lender
The Borrower receives their microloan in minutes
Problem
Financial Inclusion for underbanked and unbanked individuals and SMEs decelerated significantly during COVID-19 lockdowns because
- Access to Lenders became more scarce as many were shut, some permanently
- Rates of repayment, interest and fees increased in some areas by up to 1000%
- APY on MFI was in some cases 10X the Yunus standard of ~10% APY
Solution
Providing scalable instantaneous access to MFI at the lowest possible APY is the answer by
- Providing an MFI DeFI Ready-to-go solution for Borrowers available in their BlockLoans Wallet
- Provide Microloan access leveraging the familiar Family Lending Circle model coupled with support of a Regulated Bank for matching collateral to the Borrowers.
- Access to thousands of pooled Lenders with a decision in a few minutes
- An simplified method of repayment and return of the collateral easily managed in their secure BlockLoans Wallet
Co-Founders
Honorary Advisor
Blockloan's Partners
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