iP2PGlobal is the first to offer Sharia-based financing products built on blockchain technology
Looking at the current peer-to-peer (P2P) lending landscape, demand can be seen for more P2P lending platforms with many springing up like mushrooms over the years.Statistics worldwide also shows strong demand and growth for the market.
According to the Industry Reports by Cambridge Centre for Alternative Finance, the alternative financing market in Asia Pacific, registered USD 245.28 billion in 2016 compared to a mere USD 5.69 billion in 2013.Out of the USD245.28 billion 55.8% came from P2P consumer lending.
To top it off, the global P2P lending market is set to rocket up to a compound annual growth rate of more than 53% by 2020 from 2015 according to Technavio’s Global P2P Lending Market 2016- 2020.
But there has yet to be one that offers financing products based on Sharia principles, built upon blockchain technology.
That is about to change with iP2PGlobal Personal Financing Platform.
iP2PGlobal Management Team CEO James Loy said iP2PGlobal is set to re-shaping personal financing with it being the first to offer financing products based on Sharia principles, built upon blockchain technology.
“Although sharia financing products are sought after by Muslims, non-Muslims will also be attracted to them especially those looking to diversify their pool of investment resources,”
Sharia finance principles, including are closely related to ethical values of fairness, equality and morality in finance, which resonates with everyone, no matter their religion and creed.
According to an article in CNBC, Islamic financing was traditionally dominated by Muslim-majority countries in the Middle East and Southeast Asia but issuance of Islamic debt by non-Muslim countries was set to climb to a three-year high last year.
Islamic products comply with Sharia and are based on the principles of risk and profit-sharing.
Two financing products, which are unsecured and secured personal financing products based on Tawarruq contracts, will be initially be offered at the platform.
“We are kick-starting the platform with two financing products, which are unsecured personal financing and secured personal financing,”
He explained that Tawarruq is the mode which most sharia banks worldwide provide personal financing, to facilitate the supply of cash to their customers.It is a mode of finance that consists of two sale and purchase contracts.
The first involves the sale of an asset to a purchaser on a deferred basis and the subsequent sale involves sale of the asset to a third party on a cash basis.
Under this principle, iP2PGlobal will be offering short term unsecured personal financing product to the borrowers.
As an extra safety net, lenders taking up this will have an option to contribute to Takaful Reserve Funds
“To cushion some of the risks, iP2PGlobal will introduce a TRF where lenders will have the option to contribute to the TRF at the start of an unsecured Tawarruq financing,”
He elaborated that TRF will cover lenders for a net amount that can be reasonably recovered by an appointed Collection Agency, even after all actual recovery attempts by the agency have failed after a period of 90 days from the date of non-payment by a borrower.
Compensation from the TRF will depend on the availability of funds inside.As for secured personal financing, borrowers can provide securities to a Tawarruq transaction through collaterals such as Bitcoin, ETH, Bitcoin Cash, Ripple, Dash and Litecoin.
The tenure options for both financing products are one month, three months or six months.
TWQ Token Pre-ICO is ongoing
iP2PGlobal Personal Financing Platform is offering a total 175,000,000 TWQ tokens for subscription for its pre-ICO, starting from 19th February, 2018 (OO:OO UTC) to 13th May, 2018 (23:59 UTC).
Different bonuses are offered at different stages of the pre-ICO, which is outlined in the whitepaper.
The TWQ (Tawarruq) is an ERC20 token that confer the right to the token holder to submit an application for a personal financing based on a Commodity Tawarruq Trading program, through the iP2PGlobal platform and have it listed in the platform for prospective lenders to view and choose to finance.
The TWQ Token is a pure utility token and does or will not provide any other rights and functions to its holders.
Meanwhile, the ICO crowdsale starts on 14th May 2018 (00:00 UTC) and ends on 8th July 2018 (23:59 UTC).
The price being offered for the tokens is 0.0002 ETH for 1 TWQ during pre-ICO and ICO crowdsales.For even better perks, large purchase bonus for individual subscriptions above 50ETH will be entitled to a 10% additional TWQ tokens.
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