LENDING OVERVIEW

Overview

Below is a diagram that summarizes the lending processes:

1. The borrower is onboarded on a platform, provided by an originator (such as a cooperative, guild, wholesale buyer, digital wallet, or another provider), where the borrower defines their funding needs.
2. One or more trusted parties, such as merchants of suppliers, provide credentials to the borrower to start building their self-sovereign credit record.
3. The originator creates a project with details about the local activities and the financing needs of the borrowers.
4. Borrowers go through a simple application process to receive a loan after asserting their eligibility with their verifiable credentials.
5. The disbursed amount is received by the borrowers in the borrowing application or directly paid to a third party, such as a merchant or a supplier.
6. The third party provides the necessary goods and services to the borrower to achieve their goals.
7. Depending on their business activity and the agreed lending conditions, the borrowers repay their loans regularly or as a bullet payment at the end of the season.

The next sections describe the following processes:

• Borrower onboarding
• Loan application
• Loan utilization
• Loan repayment