The growing population of unbanked is harming the economy, themselves and others. Even with so many innovative opportunities to become digital, they continue to maintain the tradition of saving money under the mattresses, borrowing from unlicensed lenders and losing assets in between fees and time.
Banks reject loans without a credit history
The dangers of borrowing money from unscrupulous lenders are shown in Neil’s encounter with a loan shark. Neil (not his real name) had a classic cars business in operation when he borrowed money from a strange man he met somewhere in a local area.
Neil didn’t get funding from official sources, so he approached a potentially risky lender. It turned out that Neil came across a loan shark who acted on his emotions (he had recently lost a father and left alone with an ill mother to take care of).
He ended up paying a massive amount due to an exorbitant interest rate. He eventually went broke and was threatened with bodily harm for inability to further amortize the loan.
How can we change this?
The reality is harsh for everyone. But is there any way to escape it? Most issues had been solved by implementing innovative technology in an outdated industry. Today this technology is blockchain – a decentralized digital ledger that’s disrupting traditional error-filled methods in business operations.
For this particular issue, familiarize yourself with a blockchain-based microfinancing platform – AssetStream. AssetStream is a guide itself for the unbanked. By creating a secure space where lenders and borrowers can directly connect, this platform is helping borrowers to get loans from licensed lenders and trustworthy agencies. Negotiations are done Peer-to-Peer with no intervenors.
By utilizing stellar blockchain, AssetStream can make faster and cheaper transactions compared to other microfinancing platforms.
Take careful steps
How to prepare for a loan
- Define your needs. Define the reasons for the loan.
- Draw a business plan. It should have all the information that a lender needs to arrive at a lending decision.
- Get documents in order. Have everything ready and at hand.
- Get professional help. If it is your first time applying for a loan, you may want to get some professional help. AssetStream customer support, community and their provided information is all about educating the customers more about the concept.
How to borrow on AssetStream
- Go to the website. Register a new account. Verify your email and upload the necessary documents.
- Send a request for a loan to the AssetStream platform
- Gather enough community votes.
- Find a local agency to participate in the loan.
- Once in the fundraising phase, find enough lenders to fund your project
- Your loan will be processed if you reach a soft cap before the starting date of the project.
End unbanked status with AssetStream
Keep your dignity and peace of mind. You can end your unbanked or underbanked status with innovative platforms that secure the future in through blockchain technology Click here to go to AssetStream platform and end your issues with the current financial system.