how can we bring collateralised loans on blockchain specific to vehicle as collateral.

1. Vehicle
Collateral loans
on blockchain

2. Objectives
● Making collateral loan system transparent
and available for all
● Making it automated removing the
chances of manual errors
● Directly passing benefits to user instead of
third party mediators
● Democratizing group by introducing DAOs
● Streamlining one process for all
● Improving user experience for easy
adaptability

3. Current Process
1. Borrower goes to bank requesting a loan
2. Bank assign’s agent and a list of documents
3. The documents are then collected , verified &
validated which usually takes a lot of time
4. Then another agent is assigned for vehicle
inspection
5. Then the loan amount and terms are decided by
bank and forwarded to borrower
6. Then borrower agree’s or disagree’s on terms and
respectively the amount is been disbursed.
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4. Issues With Current Process
● Too many middlemen are there in process
○ Which leads to -
■ Less benefits for users as each have their own cuts
(monetary)
■ Higher chances of manual error (human error)
● Too many documentation needed for verification
& validation
● User do not have all available offers at one place.
● No transparency in this process (due to
middlemen)
● As so many checks and people are involved, the
amount of time consumed also increases
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5. What is Defi ?
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DeFi (or “decentralized finance”) is an umbrella term for
financial services on public blockchains. With DeFi, you can do
most of the things that banks support — earn interest, borrow,
lend, buy insurance, trade derivatives, trade assets, and more
— but it’s faster and doesn’t require paperwork or a third party.
As with crypto generally, DeFi is global, peer-to-peer
(meaning directly between two people, not routed through a
centralized system) and open to all.

6. Why Defi?
● It eliminates the fees that banks and other
financial companies charge for using their
services (removing the middlemen).
● You hold your money in a secure digital
wallet instead of keeping it in a bank and
every transaction is logged publicly
(Transparency) .
● All process is automated using smart
contracts (no more scope of manual
errors).
● Does not require permission of authorities,
if peers agree on the transaction

7. Actors
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Lender
A lender can be single
entity , a group(forming a
DAO) or an institution
Borrower
Single entity opting for a
loan
RTO
Government entity
acting as creator &
validator of NFTs
Oracles
For getting off-chain data
like creditworthiness ,
KYC & car market price.
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4
3
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8. 8
Flow
The user (both borrower & lender) joins the portal, before
whitelisting the address the user’s creditworthiness is checked.
After verifying and meeting the needed thresholds the user is
allowed to access the portal
Lender can join some DAOs , create a DAO or push its liquidity
on to already available pools or post as an single
entity(institution). (Small lenders can join DAOs or add their token into liquidity pools.)
Borrower can request to already available according pools
which has all terms defined.

9. How does the background check work
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Using already available oracles it is possible to get a
credit rating and if it matches our threshold it will let the
user have access of our portal
Now user need to prove its creditworthiness only once
while signing up and every time it applies for a loan (only
for lenders).
The credit rating would be visible to all lenders as this
would make easy for lenders to make decision.
example : chain link - Spectral Finance
● This is programmable oracle so we can later change
to get combined on chain & off creditworthiness
chain analysis also.

10. 10
Asset registration & verification
The vehicle would be first mined from
RTO address this address would act as an
verification of an real entity.
As the NFT would be first mined from RTO
address the required history can be
calculated easily like:
● Age
● Depreciation

11. Other Important Parameters
Incentivization
As there are no
middlemen there would
an automatic
incentives for both
parties as there would
be no cuts.
Loan Defaults
If the borrower defaults
on maintaining balance
in the wallet which
smart contract cannot
deduct there would be
grace period provided
and if still the borrower
defaults, the staked
NFT is sent to lenders
address or DAO
Marketplace
Borrower would have
list of available pools
with terms &
conditions already
mentioned he/she can
select accordingly.
This makes all offers
available for borrowers
at one place.
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12. Process Flow
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13. Blockchain Frameworks
Hyperledger Fabric Ethereum Polygon
Transparency NO YES YES
Throughput High Low High
Security OK* High High
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Security on fabric depends upon your way of implementation*

14. TECH STACK
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Infrastructure (AWS)
• AWS EC2
• AWS RDS (DB)
Frontend
• Web3Js acting as an
intermediate between
Ethereum node
Frontend
• ReactJs User interface
Backend
• NodeJs,
• MySQL
Database
• Polygon
Blockchain
(Solidity)
(according to analysis on above slide)

15. Architecture
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16. 16
Cross Border
Transactions
Democratic
Incentivization
Verified Asset
Ownership
Easy
Audit
Advantages of using
Blockchain

17. Challenges with blockchain
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Market
High volatility in
crypto markets and
higher the volatility
less the number of
long term investors
Technical
User needs to learn on how
to handle digital wallets i.e
keys , how to check & verify
assets , how to make
transaction on blockchain.
(LACK OF AWARENESS)
Strategical
If there is change in chain we
also need to make the
changes accordingly to be in
line with and as blockchain
is an developing field the
number of updates becomes
higher

18. Conclusion
We propose a decentralized system, where
borrowers, lenders, banks, RTO still exists but in
democratic fashion. Public blockchain like Polygon
gives a strong decentralized network which is
tamper proof and fully transparent.
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19. Thanks!
Parth Maisheri
https://www.linkedin.com/in/parthmaisheri/
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