Getting a loan from banks is a massive task. The collateral asked are mostly landed properties, expensive jewelries or valuable vehicles which is not an option for low income individuals. As a result, only 4% of loans in value are given to individuals, while 96% are given out to business and HNIs. In, African countries, most low-income earners find it difficult to access basic financial services.
African retail banks do not reach the bottom of the pyramid, which makes rural communities an untapped market. Blockchain solves a lot of issues of trust and integrity of information while incentivizing millions of Africans to save and repay. This is the primary goal of Nigerian FinTech startup Aella Credit.
What Is Aella Credit?
Aella Credit is a platform to disrupt ineffective banking and change the African continent through a fair and effective loan pricing application powered by the customer. They are ardent in enabling the under-banked get access to formal credit. As long as one provide a source of income either through employers or individually, they are guaranteed instant loans. They will be integrating with Creditcoin to keep a transaction record that will allow the customers access to low cost credit for housing, healthcare, business and other needs in the future.
Aella Credit Digital Banking Blockchain For Lending In Africa Features
Some of the traits attributed to Aella Credit are listed below:
- Employees in the Network have access to the best rates due to reduced risk profile and highest loan sizes/longest tenors.
- Individuals outside the network of employees have the opportunity to increase their funding limits and reduce rates through on time re-payments and financial education.
- Competitive returns on investment with an online portal for account management and status updates on investment.
Creditcoin was launched when Aella Credit decided to join hands with another FinTech innovator Gluwa.com, to make it easier to invest in cryptocurrency. Creditcoin is intrinsically an inter-blockchain P2P lending market.
Presently, there is absolutely no way to use cryptocurrency as an investment tool. That's because each cryptocurrency is supported by its own blockchain and these blocks remain disconnected. Creditcoin connects the blockchain enabling a secure and transparent cryptocurrency investment market. This allows fundraisers and investors to connect directly.
Fundraises post the amount of capital they seek at their preferred interest rate, collateral and the credit coin they are offering while the miners of the network can amend the terms and even check the credit history of the fundraiser which is stored on the creditcoin blockchain. Once both parties agree, the deal is announced to the creditcoin network then validated thus making it more transparent than traditional financing. This establishes a new frontier for investments around the world.
Creditcoin’s sale has started with the cap amount of 40 million USD. They have sold 134 million coins(CRE) till now.
Aella Credit Conclusion
Funded by Y Combinator, VY Capital, Zeno Ventures and other notable investors including Brian Armstrong of Coinbase and partners such as Gluwa.com, Aella Credit is a force to reckon with in the African FinTech world.
More can be learned about Aella Credit on their website aellacredit.com/
If you want to buy creditcoin or want to learn more about it, you can do so on their website buycreditcoin.com/