> ## Documentation Index
> Fetch the complete documentation index at: https://docs.usmewe.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Request a Loan

> Get a zero-collateral loan based on your Trust Score

# Request a Loan

Borrow USDC without collateral based on your Trust Score.

## Before You Start

Check your eligibility:

| Requirement   | Minimum     |
| ------------- | ----------- |
| Trust Score   | 10+         |
| Active loans  | Less than 3 |
| Overdue loans | None        |

<Note>
  You can check your exact borrowing limit in the app under **Dashboard** > **Loans**.
</Note>

## Step-by-Step Guide

<Steps>
  <Step title="Go to Loans">
    Navigate to **Dashboard** > **Loans**
  </Step>

  <Step title="Check Your Limit">
    You'll see your borrowing capacity:

    ```
    Your Borrowing Power
    ├── Max Amount: $100
    ├── Max Duration: 30 days
    ├── Interest Rate: 3%
    └── Trust Score: 56 (Established)
    ```
  </Step>

  <Step title="Click Request Loan">
    Click the **Request Loan** button
  </Step>

  <Step title="Enter Loan Details">
    Fill in the form:

    * **Amount**: How much you want to borrow (up to your limit)
    * **Duration**: 7-90 days (based on your tier)
    * **Purpose**: Optional but recommended
  </Step>

  <Step title="Review Terms">
    Review the loan terms:

    ```
    Loan Summary
    ├── Principal: $50.00
    ├── Insurance Fee (10%): -$5.00
    ├── You Receive: $45.00
    ├── Interest (3%): $1.35
    ├── Total Repayment: $51.35
    └── Due Date: January 29, 2025
    ```
  </Step>

  <Step title="Confirm and Sign">
    Click **Confirm Loan** and sign with your wallet
  </Step>

  <Step title="Receive Funds">
    Funds are sent to your wallet instantly!
  </Step>
</Steps>

## Understanding the Costs

### Insurance Fee

A **10% insurance fee** is deducted upfront:

| You Request | Insurance Fee | You Receive |
| ----------- | ------------- | ----------- |
| \$50        | \$5           | \$45        |
| \$100       | \$10          | \$90        |
| \$200       | \$20          | \$180       |

<Info>
  The insurance fee funds the Insurance Pool that covers defaults, protecting lenders.
</Info>

### Interest Rate

Interest is based on your Trust Score:

| Trust Score | Interest Rate |
| ----------- | ------------- |
| 10-30       | 5%            |
| 31-50       | 4%            |
| 51-70       | 3%            |
| 71-85       | 2%            |
| 86-100      | 1%            |

### Example Calculation

```
Requesting: $100 for 14 days at 3% interest

Insurance fee: $100 × 10% = $10
You receive: $100 - $10 = $90

Interest: $100 × 3% × (14/365) = $0.115
Total repayment: $100 + $0.115 = $100.12

Effective cost: $10 (fee) + $0.12 (interest) = $10.12
```

## Borrowing Limits by Tier

| Tier        | Score  | Max Amount | Max Duration |
| ----------- | ------ | ---------- | ------------ |
| New         | 0-30   | \$20       | 7 days       |
| Building    | 31-50  | \$50       | 14 days      |
| Established | 51-70  | \$100      | 30 days      |
| Trusted     | 71-85  | \$200      | 60 days      |
| Elite       | 86-100 | \$500      | 90 days      |

## Level Bonuses

Higher levels get bonus limits:

| Level         | Limit Multiplier |
| ------------- | ---------------- |
| Bronze-Silver | 1.0x             |
| Gold          | 1.25x            |
| Platinum      | 1.5x             |
| Diamond       | 2.0x             |

<Tip>
  A Diamond user with Trusted tier could borrow up to \$400 (200 × 2.0)!
</Tip>

## Repayment

You'll need to repay the loan by the due date:

<CardGroup cols={2}>
  <Card title="On-Time" icon="check">
    +2 Trust Score points
    No penalties
  </Card>

  <Card title="Early" icon="star">
    Save on interest
    +3 Trust Score points
  </Card>

  <Card title="Late" icon="clock">
    -5% Trust Score
    Grace period of 7 days
  </Card>

  <Card title="Default" icon="xmark">
    -30% Trust Score
    90-day borrowing ban
  </Card>
</CardGroup>

## Tips for Success

<AccordionGroup>
  <Accordion title="Start Small" icon="seedling">
    Take a small loan first (\$20-50) to build repayment history. Each on-time repayment adds +2 points.
  </Accordion>

  <Accordion title="Set Reminders" icon="bell">
    Enable notifications to get reminded before your loan is due.
  </Accordion>

  <Accordion title="Repay Early" icon="bolt">
    No penalty for early repayment. Pay early to save on interest and get bonus points.
  </Accordion>

  <Accordion title="Keep USDC Ready" icon="wallet">
    Make sure you have USDC in your wallet before the due date.
  </Accordion>
</AccordionGroup>

## Cancel a Loan Request

If your loan is still **pending** (not yet funded):

1. Go to **Dashboard** > **Loans**
2. Find the pending loan
3. Click **Cancel**
4. Confirm cancellation

<Warning>
  Once a loan is funded, you cannot cancel. You must repay the full amount.
</Warning>

## FAQ

<AccordionGroup>
  <Accordion title="Why did I receive less than I requested?">
    The 10% insurance fee is deducted upfront. If you request $100, you receive $90.
  </Accordion>

  <Accordion title="Can I have multiple loans?">
    Yes, up to 3 active loans at once.
  </Accordion>

  <Accordion title="What happens if I can't repay?">
    Contact us before defaulting. We offer extensions and payment plans for eligible users.
  </Accordion>

  <Accordion title="Where do the funds come from?">
    Loans are funded by the Trust Vault, where users stake USDC to earn yield.
  </Accordion>
</AccordionGroup>

## Next Steps

<CardGroup cols={2}>
  <Card title="Repayment Guide" icon="rotate-left" href="/core-concepts/p2p-lending/repayment">
    How to repay your loan
  </Card>

  <Card title="Improve Trust Score" icon="star" href="/core-concepts/trust-score/overview">
    Increase your borrowing power
  </Card>
</CardGroup>