BidLend.io wants to create a P2P lending platform that is trustworthy, transparent, and most importantly, fair to both borrowers and lenders. Loans on BidLend will be securitized and partitioned for lender to bid, in order to maximize the benefit to both lenders and borrowers.
Imagine when Peter wants to borrow 1000USD for 3 months to pay the tuition fee. He will submit a loan request to BidLend.
BidLend will then evaluate the risk level based on Peter's financial situation and credit history, then a Maximum Interest Rate(MIR) will be generated for Peter. This time, the MIR of Peter is 8% which is slightly lower than the rate he can get from the bank. After Peter's confirmation on his MIR. BidLend will breakdown the loan request into ten 100USD Auctionable Small Contract for lenders to bid on.
Lenders on BidLend can offer their desire interest rate on certain loans as long as it is not higher than MIR. Everytime when there is a contract, the offer with the lowest interest rate will get the loan.
Say, Peter received 7 offer with 6% interest rate and 3 offer with 7%. At the end, he received a 1000USD loan with (6%*7+7%*3)/10 = 6.3% of interest rate.
We believe the OBOR framework, that encompassing around 60 countries, including 4.4 billion people with USD$ 21 Trillion of an aggregate in economics, will create a huge demand for consumer lending in those area, especially in the developing countries. And the prematurity of financial institutions in those area will create a great investment opportunity.
To overcome the insufficient financial support, Chinese government initiated the Silk Road Fund and Asian Infrastructure Investment Bank (AIIB) to facilitate the business financing. And BidLend aim to facilitate the personal financing in those area and offer an investment opportunity to the investors all over the world.