Yesterday, China’s Guangdong province launched a blockchain platform for small and medium enterprise financing. Dubbed as the Guangdong Provincial Small and Medium Enterprise Financing Platform, it implements credit analysis and evaluation of SMEs for faster processing of loans.
On the same day of its launch, the blockchain platform processed a 1.12 million yuan ($160,600) loan from Industrial and Commercial Bank of China (ICBC). Along with faster processing of the loan, it was claimed the platform also reduced the interest rates to 5.5% from 18%.
The Guangdong SME Financing Platform enables credit analysis by connecting to 213 types of data from 26 government departments and collects information on 11 million SMEs across the province. For loan disbursal, the platform connects to 129 banks such as the China Construction Bank, ICBC and Ping An Bank.
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