Collateral & Lending

Credit is optional

Not every farmer wants or needs a loan. Farmers who are economically self-sufficient benefit from AsiliChain — faster payment, EUDR compliance, price transparency — without touching the lending product.

Two Farmer Profiles

Profile	What they use	What they gain
Credit user	GrowingCropToken or BatchToken as collateral	Working capital at 14–18% APR instead of 60–120% informal lender rates
Self-sufficient	No credit facility engaged	60-second MTN MoMo payment · EUDR DDS access · real-time market price · on-chain credit history begins building

The Four-Stage Collateral Spectrum

graph LR
    GCT["🌱 GrowingCropToken
LTV: 30–65%
Pre-harvest"]
    BT["☕ BatchToken ERC-1155
LTV: 60–70%
Post-harvest graded"]
    WRT["📄 WarehouseReceiptToken
LTV: 75–80%
Buyer committed"]
    DONE["✅ Auto-repayment
EXPORTED event
CreditScore +50"]
    GCT -->|"Harvest delivered"| BT
    BT -->|"Buyer commits PurchaseOrder"| WRT
    WRT -->|"Buyer pays USDC"| DONE

Interest Rate Structure

Component	Rate	Recipient
Borrower APR (gross)	14–18%	Total charged
MFI liquidity yield	8–10%	MFIs funding the pool
AsiliChain margin	4% (fixed at launch)	AsiliChain treasury
Credit loss reserve	1–2%	Smart contract buffer

Context: Uganda informal agricultural credit APR is 60–120%. EthicHub (closest comparable, Latin America/Africa) achieves 12–15% gross across 10,000+ farmers since 2018.

CreditScore.sol

• Start: 500
• On-time repayment: +50
• Default: −100
• Portable across cooperative memberships
• Public — any MFI can query before approving
• Permanent — cannot be deleted or altered

Self-sufficient farmers also build CreditScore through on-time delivery records and cooperative standing — creating future optionality without requiring a loan today.