Over 1.7 billion people around the world don’t have a bank account and can’t access a loan service. For people in developing countries, this means that they can’t start a small business or access funds when they most need them, effectively trapping them in the poverty cycle. What if there was a way that everybody, regardless of financial situation, could access loans? Crediture is a platform that connects those who want to lend small amounts of money to those who want to borrow. Since it’s built on the blockchain, loans can be approved much quicker than traditional banks and processing fees are also greatly minimized.

Crediture is built on the Lendroid protocol, which is based on the Ethereum network and smart contracts. The tool uses Metamask to run the application right on the web, so that you don’t have to run a full Ethereum node. It supports both asset-backed and unsecured loans. Borrowers and lenders can choose to exchange ERC20 tokens like DAI and USDC, as well as choose a preferred interest rate range. In the case of asset-backed loans, users can borrow up to the market value of their tokens (which act as collateral). With unsecured loans, users can make a portfolio and outline what they intend to use the loan on. The tool will match borrowers and lenders based on the terms that they have selected. Voila, you’ve got yourself a loan!


What inspired you (or your team)? 

A few years ago, I went on a trip to India. I remember meeting a milkman, he was a poor person named Ravi. He told me that he would get up every day, buy milk from the market, and travel miles on his bicycle delivering the milk. He never took a day off, because he couldn’t afford to. One day, I asked him why he didn’t just buy a cow so he wouldn’t have to buy milk from someone else. He told me that he didn’t have enough money and couldn’t save up because his family needed his daily income.

Since then, I’ve realized how powerful microloans can be. You give someone a small loan, anywhere between $10 – $500, and they can use that to start a small business, helping them escape the poverty cycle. As a lender, you would give out lots of small loans at higher interest rates to minimize your risk. It’s a win-win! But I also noticed that these types of loans weren’t accessible to everybody. I didn’t think it should matter how far away you lived from a bank or how many assets you had, as long as someone was willing to lend you money. I created Crediture in the hopes of solving this issue!