Crowd Lending, also known as Peer to Peer Lending, is available on Tagcash to either request loans or to lend to others. This service is available to indivduals or companies, anywhere in the world.
When creating a Loan, you set the target amount to borrow, and the interest you want to offer per month (Between 1% min and 5% max). Once the pledges have reached the target amount, the borrower can accept the loan. Repayment of the loan plus interest starts 30 days after acceptance.
Loan requests can be unsecured, secured with collateral or documentation such as purchase invoices, company financials. In the case of individuals applying, proof of work, references etc, can be uploaded to help lenders decide to lend.
Collateral can be in the form of cryptocurrency (Bitcoin or Ethereum only at the moment), Share Tokens (untokenized companies can request to tokenize part of their company to make this possible) or Tokenized Real Estate. In both the last cases, real company shares or property titles would be held in escrow by a registered transfer Agent or Trustee. In the case of sale of the company or property, any tokens outstanding would be paid out first, pro rata, before any remaining funds paid to the owner.
Money is released via the Tagcash Wallet, in whatever currency is being requested. Payments would be made every month back into the Tagcash Wallet, using banks, cash or cryptocurrency. Payment to the lenders is automatically made along with any interest due. Failure to pay back within 30 days, will result in collateral being sold to pay off the loan, and a permanent record written to the KYC Blockchain, untill such time as the loan is repaid. Anyone can access the KYC Blockchain to check records of bad loans.Salary Loans
Companies that want to offer the lending service to their employees can register, and approve employee loan requests as they are made. Each month, a portion of the employee salary is paid into Tagcash and is automatically used to settle repayments and interest.Company Loans
Companies that want to borrow money on a short term basis, can upload documents such as purchase or sales invoices, or offer some other form of collateral such as shares in the company, cryptocurrency, plant and machinery.Tagcash Fees
Tagcash charges a small fee of 100 TagCoin (equivalent to approx $1) to post a request for a loan, which can be earned by performing KYC Verification to Level 4. A completion fee of 3% is deducted from the total given to a borrower, when the target is met and accepted. For lenders, 10% of the total interest paid is kept by Tagcash.
Tagcash is a digital wallet developer and platform, building blockchain solutions on Distributed Ledger Technology. Tagcash is regulated by the central bank of the Philippines (BSP), and is authorised as an Electronic Money Issuer (EMI) - https://tagcash.com/emi.pdf