Etherecash is committed in its mission and understand the fact that “the trusts factor” particularly in the finance sector is of paramount importance. Etherecash fundamentally aims to fill the gap between those who have money to finance and those who need money or finance by bringing them together on a common platform with lawyer backed smart contract technology. Etherecash made possible peer to peer lending without the need for an intermediary via online platform.

Lending Mechanism

It is a very simple process. You know the fact that money which kept idle has less value and if not used prudently, the value becomes eroded further over a period of time. Etherecash enables peer to peer lending crypto backed by connecting the lender and buyer together worldwide. If you have money, why don’t you to lend it and make it a source of income. Peer to peer lending with Etherecash ensures higher interest rate than usual bank deposits. There are no restrictions, you can find borrowers internationally and transact it in relatively short duration of time. All deals are transparent, reliable and highly secured.

How the Process Works

Similar to the general lending process, it follows the below sequence:

Lender initiates lending process and applies for lending
Buyer initiates borrowing process and applies with Crypto value as collateral security (Cryptocurrency: In layman language, it means a digital asset which act as a medium of exchange and highly secured with cryptography)
A mutual agreement(smart contract) is signed between both parties confirming the terms and conditions of deal
Lender then deposits the money
Similarly the borrower deposits Crypto as collateral security
Lender receives instalment amount with interest
Borrower to repay loan plus interest
On complete repayment of loan plus interest, crypto is returned back to borrower
Smart contract is completed

Lending- Simplified

See, how simplified and easy the process of lending mechanism is. The historical and prevailing ways of lending have created a huge gap between haves and have nots. To add to this, in financial market, lenders are less and borrowers are more, buyer needs to have good credit history and so many formalities to get the loan sanctioned. The whole situation somehow forces the borrower to accept the loan on many conditions which favors the lender considerably. This huge gap is taken care and made it completely transparent by Etherecash.

With the creation of Etherecash, those who have a phone and internet facility can easily be the medium of finance, have money on time , lend your excess money and send them anywhere in the world in fastest way possible, thanks to technological advancement made in the last ten years, to be precise. Etherecash include in its scope infact all sections but not limited to Individuals, SME’s, Companies, Students and Projects. Loan is provided for multiple reasons such as Projects, business, immediate needs, Car loans, student loans etc .

You may wonder what has changed, infact, there is no change happened in the requirement of credit, however the way finance is made available using technology has changed with minimal transactions costs. It enables both lenders and buyers to connect direct without the need for any intermediary. Wow, what a great concept, indeed.

Loan Recovery System

The most interesting aspect of Crypto backed loan is, it is already secured from day one. It is as good as you have lent someone against the deposits of gold. It does not mean you loan is not taken care by any other means. Numbers of proactive and protective measures are in place to help you recover the loan in case of any delay in repayment from borrower’s side. Let us discuss some of recovery steps here:

Smart contract duly signed up is very much transparent and mutually agreed up on. No one can make the agreement redundant later till the time full settlement of loan is made.
Smart contract is a lawyer backed system, hence no worries.
Collateral Management: Etherecash regularly monitor the value of crypto deposited as collateral security. As you know, like other assets, crypto also changes its value due to market conditions. To safeguard the fluctuations in the value, the following steps are taken
Collateral Management: In case the valuation falls below the threshold mentioned in the smart contract, the borrowed will be notified to add more collateral or liquidate the crypto as per the prevailing market rate
In case the valuation enhances its value, the borrower will be notified, borrower may withdraw part of collateral basis market rates or opt for repayment of loan or even look for additional credit.