P2P (Peer-to-Peer) lending platform is a place where the lender and borrower connect without the presence of middlemen. In the general market, middlemen are usually banks and other financial institutions. By getting rid of the middlemen, the two parties involved deal with each other directly.
The same theory is applied to P2P crypto lending software. Instead of fiat, cryptocurrency is borrowed and lent through the exchange. Issues such as lack of security, transparency, and reliability are solved to a major extent because the transactions take place on a blockchain.
Similar to regular markets, borrowers can decide the amount they want to borrow and the time duration of the loan. They will have to repay the amount with a pre-defined interest amount calculated by the exchange.
The main aim of the P2P crypto lending platform is to bring the lenders and borrowers together on a single platform to facilitate transactions between them. The platform should take care of multi-layer security, KYC, and AML verification for the lender and the borrower to promote safe and secure transactions.
The borrower can be an individual or an entity. The credit rating of the borrower is not taken into consideration. This allows the platform to be accessible by a wider spectrum of the market. The lender is usually an individual who would be offering crypto funds to those who need them. Both the lenders and borrowers should first create their profiles on the platform for the purpose.
The working of a P2P crypto lending exchange is quite simple and easy. It starts with the two main parties opening their accounts on the exchange and creating their profiles by submitting the required information.
Rest of the Process:
The following factors have made P2P crypto lending software famous in the market:
Experts say that the popularity of P2P crypto lending exchanges will only increase as more and more people start looking at it as an affordable alternative option of getting a loan. With crypto markets gaining more traders, the lending platforms are here to stay. Companies that are planning to develop P2P lending exchanges should start working on the project immediately.
We, at Antier Solutions, offer customized P2P crypto lending software development services to navigate your development journey. We offer a white label P2P lending solution to accelerate deployment, and on the contrary, we can build a custom crypto lending platform for you from scratch, as per your business model.
Schedule a free demo of our white label P2P crypto lending exchange or connect with our subject matter experts to share your business needs.