Loan Application
This guide walks you through the loan application process on Locale Lending.
Prerequisites
Before applying, you must complete:
| Requirement | Description |
|---|---|
| BorrowerCredential | KYC verification complete |
| Bank Account | Connected via Plaid |
| Transaction History | 90+ days of bank data |
| Stable Income | Demonstrated through transactions |
| DSCR Eligibility | Likelihood of DSCR ≥ 1.0 |
Application Steps
Step 1: Access Borrower Section
- Log into the Locale Lending platform
- Navigate to Borrower section
- Click Apply for Loan
Step 2: Select Loan Type
Choose from available loan types:
| Type | Term | Use Case |
|---|---|---|
| Working Capital | 3-12 months | Short-term business needs |
| Equipment | 12-36 months | Asset purchases |
| Real Estate | 12-60 months | Property loans |
| Personal | 3-24 months | Consumer credit |
Step 3: Enter Loan Details
Provide loan information:
- Loan Amount — Requested amount in USDC
- Purpose — Brief description of use
- Term — Desired repayment period
KYC Requirements by Loan Size
| Loan Size | Required Verification |
|---|---|
| < $10,000 | Basic KYC |
| $10,000 - $100,000 | Basic KYC + Strong DSCR |
| > $100,000 | Enhanced KYC |
Step 4: Review Estimated Terms
Before submission, review:
- Estimated interest rate
- Monthly payment amount
- Total repayment
- DSCR requirement
Step 5: Submit Application
Click Submit Application to begin processing.
DSCR Calculation
After submission, the system automatically calculates your DSCR:
Processing Time
Approximately 5 minutes for:
- Transaction history analysis
- Income categorization
- Debt service calculation
- DSCR computation
- Rate determination
What Gets Analyzed
| Data | Purpose |
|---|---|
| Income Transactions | Monthly income average |
| Operating Expenses | Business costs |
| Existing Debt | Current obligations |
| Proposed Payment | New loan payment |
Application Outcomes
Approved
If approved:
- Review final loan terms
- Accept terms on-chain
- Receive USDC funds
- Repayment schedule activates
Conditional Approval
May require:
- Additional documentation
- Enhanced KYC verification
- Collateral (for larger loans)
Rejected
If rejected:
- Wait Period: 30 days before reapplying
- Improve Financials: Pay down debt, increase income
- Review Feedback: Understand rejection reason
Post-Approval Process
Accept Terms
After approval:
- Review final interest rate
- Confirm monthly payment
- Review total repayment amount
- Sign on-chain transaction
Fund Disbursement
Upon acceptance:
- Smart contract executes
- USDC transferred to your wallet
- Loan becomes ACTIVE
- First payment due in 30 days
Application Tips
Improve Approval Chances
- Maintain Consistent Income — Regular deposits help DSCR
- Reduce Existing Debt — Lower debt service improves ratio
- Complete Enhanced KYC — Required for larger loans
- Accurate Information — Ensure bank connection is current
Common Issues
| Issue | Solution |
|---|---|
| Bank connection failed | Reconnect via Plaid |
| Insufficient history | Wait for 90 days of data |
| Low DSCR | Reduce debt or increase income |
| KYC expired | Complete re-verification |
Application Timeline
| Stage | Duration |
|---|---|
| Application submission | Instant |
| DSCR calculation | ~5 minutes |
| Review (if needed) | 1-2 business days |
| Approval notification | Instant |
| Fund disbursement | After acceptance |
Next Steps
- DSCR Calculation — Understand how DSCR works
- Repayment — Payment schedule and options
- Eligibility — Full requirements