What Is A Crowdloan?
A Crowdloan is a type of loan that is funded by multiple lenders, rather than just one. This type of loan can be used for a variety of purposes, such as starting or expanding a business, purchasing real estate, financing an education and more. The idea behind crowdlending is to provide access to capital for those who may not qualify for traditional bank loans due to their credit score or other factors.
Crowdloans are typically offered through online platforms where investors can browse different projects and decide which ones they would like to invest in. Investors will then make contributions towards the project’s goal amount until it reaches its target funding level. Once this happens, the borrower receives the funds from all the investors at once and begins repaying them according to agreed-upon terms. These types of loans offer borrowers greater flexibility when it comes to repayment schedules since there are no set deadlines or interest rates associated with them; instead, each investor sets their own rate based on risk assessment and expected return on investment (ROI).