Decentralised loans, now a reality thanks to the blockchain.

Almost everything that follows a centralized system comes with its own set of flaws.
Take for example, the existing loan system. In the existing system, you first need to submit all the necessary documents in order to complete your KYC and to get our loan application approved, you will have to make additional countless trips to the bank. So, with the existing system, we would likely spend around a month just to get our application approved.
Additionally, the repayment fee that is charged to a borrower is extremely high. This whole process involves a huge number of middlemen, each charging a small amount of fee. As the number of middlemen is more, you end up paying a substantial amount of money in the form of fee. There are not efficient p2p lending systems in place either.

Due to this reason, people need to look at banks instead of risking their money by giving it to strangers. Thus, the need for a more effective lending system was very high and CoVEX has found the perfect solution to this problem.
CoVEX P2P loans:
CoVEX is an all-in-one crypto exchange that also provides the service of decentralized loans. This system is entirely risk-free and will also cost you less during the repayment. There are no middlemen involved in this system and a smart contract helps settle the payments. Hence, the amount of fee you end up paying is low.
How does this blockchain loan platform work?
In order to start using the decentralized lending platform, both the lender and the borrower must complete their KYC process. After analyzing the data provided by the borrower, his credit score is calculated in order to predict if he will be able to repay on time. If all checks out, the borrower is presented with a list of all the lenders.
The borrower and the lender can come to an agreement and this is contained in a smart contract. Every repayment by the borrower will be documented on the blockchain by the smart contract.
Another entity called the collector is responsible for collecting money back from the borrower. However, if the borrower fails to repay the agreed upon amount within the given time, lawyers will be assigned to get the repayment. The lawyers take 1% of the total money recovered as their fee and the rest is given back to the collector. Thus, ensuring that the money gets repaid no matter what.
Benefits:
The CoVEXp2p lending platform has a lot of benefits, such as:
The waiting period to get approved for a loan is very less.
As there are no middlemen involved, the interest rate (fee) imposed on the borrower is less.
As the blockchain is decentralized and available worldwide, getting loans is possible from anywhere in the world.
Conclusion:
The blockchain is revolutionizing everything in the world and by using it for the decentralized p2p lending platform, the whole world is moving towards a more efficient loan platform.