Loan Overview
Many of the things that aide man to survive can be borrowed and lent, but one of the things that stands out in the world of borrowing and lending is money. In most cases, once the words “borrowing and lending” are mentioned, what outrightly comes to mind will be money. Individuals and financial institutions can lend and borrow to people, corporations and institutions. Bond, a form of borrowing and lending is popular among corporate institutions and financial players, however, institutions that provide loans in form of bonds are centralized in their operations. They are centralized because they are the ones that set the interest rate to lenders who will acquire their bonds using opaque credit scoring instruments, and this type of bond’s interest rate settings shuts out lenders from being part of the decision making on their bond’s interest rate. These type of centralization in determining the interest of a bond breeds some shady and unhealthy deals which are not in the best interest of the lenders that acquire the bonds.
Introducing Pngme
Pngme is a platform that has come to decentralize the lending and borrowing system using the provisions and transparency of the blockchain technology. The blockchain technology is a very emerging but very penetrative technology that has positively shook up many sectors with its transparent, trustless and decentralized manner of handling transactions. Innovative financial inclusion is a keyword where Pngme is concerned as it seeks to reach out to those individuals and businesses that are excluded by contemporary and traditional financial institutions.
It achieves this aim by creating a dynamic and blockchain-powered MSME banking system where collaterals are tokenized and both lenders and borrowers can transact in a transparent and trustless ecosystem.
Tokens As Collateral On Pngme
It doesn’t really end in decentralizing the lending and borrowing systems, Pngme also went further to make blockchain digital assets like tokens as an instrument of collateral in the loans that come in form of bonds.
Pngme Architecture
Pngme borrowing and lending platform uses a top notch matching algorithm to directly connect bond lenders and borrowers, Pngme platform allows borrowers to set out their bond’s interest rate limit in the bond specifications which will be available to a bidding process by the lender. The bond specifications also comes with the credit score details of the borrower, determined with efficient scoring models of the Pngme platform. The credit scoring details of borrowers goes a long way in proving the trust and credit worthiness of borrowers to lenders. The lender, on the other hand is at liberty to bid for the interest rate of the bond he wants to acquire which has been set out by the borrower. This helps to incorporate the input of the lender towards the interest rate he will earn regarding the bond he wants to acquire.
This decentralization process imbibed by Pngme in its borrowing and lending transactions is being controlled and monitored over the blockchain technology which ensures that transparency and trustless procedures reign supreme in the course of the whole transaction. By this decentralization operation of the Pngme platform, the use of the blockchain technology is greatly popularized and patronized because all consumers or users of the platform (Pngme) will run their transactions over the Pngme's blockchain protocol.
More Benefits and Inclusiveness for Borrowers and Lenders Alike
Pngme using it's digital asset known as Pngcoin as a form of collateral in its bond’s loan is another plus to the lender and acts as a catalyst to the spread of the blockchain technology via the use of smart contracts. The lender will be exposed to the advantages and benefits of holding blockchain based digital assets which are easily liquidized. Furthermore, having blockchain induced digital asset as collateral helps to cushion the effect of borrowers' payment default whenever there is any. Blockchain based digital assets are created and issued using smart contacts – self automated and executable contract terms which require no paper work, middlemen or bureaucratic processes to execute any contract.
In Conclusion...
Using blockchain based digital assets as bonds' collaterals, Pngme hereby is increasing the use of blockchain technology through smart contracts as borrowers and lenders would have to create and hold their digital assets on the blockchain based smart contract.
For more information please visit these links
Pngme Website
Twitter https://twitter.com/pngmemobile
Facebook https://www.facebook.com/pngme
Instagram https://www.instagram.com/
Bitcointalk Ann
https://bitcointalk.org/index.php?topic=5140127
Telegram https://t.me/pngmecommunity
LinkedIn https://www.linkedin.com/company/35697946
Reddit https://www.reddit.com/r/pngme/
YouTube https://www.youtube.com/channel/UCmUPIgu-xfdYijOS7eOwYyg
Writer's bitcointalk URL
https://bitcointalk.org/index.php?action=profile;u=2047938
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