Lendsbay introduces a lot of flexibility in terms of credit history, ones credit history is no longer limited to one country, with Lendsbay people can get a loan anywhere in the world.
So as i understand i can get a loan from another country through Lendsbay? why is that better then getting a loan in your own country.Maybe you will not get credit in your own country. Or the interest rates are lower in another country. Maybe there are too few users of the app in your country. There are many possibilities
Yes exactly, it gives lendees more freedom, I'm still trying to figure out whether lendees/lenders need to hold a certain amount of LBT before they participate in a loan contract on the Lendsbay platform? I've asked around and read the whitepaper but I haven't received any clarification yet.
As in a deposit/holding fee? makes sense i guess and is definitely a good question to ask. i haven't had a thorough look but is there anywhere that states what happens if the loan isn't paid back?
The team have answered my query and it is not necessary to hold LBT to take out a loan, but a specific amount needs to be repaid in LBT tokens. Still trying to get an answer on what percentage or amount of the loan needs to be paid for by LBT.
On repayment it depends really, because in theory a Lendsbay loan should always be repaid due to the very nature that the lender is lending their money to a friend, relative or acquaintance which should reduce the risk because it would ruin a relationship. There is insurance that can be purchased to manage the risk. In all honesty I need to look into it a little bit further.
Very good information, thanks for sharing! So even though we don't need to hold LB tokens we still need to buy some before taking loan from anyone.
Found out some more information from the team about loan defaults on the Lendsbay app today. Lendsbay facilitate the signing of an enforcable contract between the lender and borrower. If there is default and someone fails to make their repayments, the app can generate an application for a court claim if the lender wishes to pursue this action. The lender then goes to court personally or with assistance of Lendsbays specialists. The claim will be enforced by bailiffs and the credit rating of the borrower will fall on the app and it probably become impossible for them to borrow money from their personal network again.
