Lender Warnings
What Lenders See Before Contributing
Clear warnings help lenders make informed decisions about risk.
Warning Levels
🟢 Low Risk (Grades A-B)
✅ Low Risk Loan
- Strong repayment history OR close social connection
- Reasonable loan size🟡 Moderate Risk (Grades C-D)
⚠️ Moderate Risk
- Limited history or moderate connection
- Consider smaller contribution🔴 High Risk (Grades E-HR)
🚨 High Risk - Lend with Caution
- First-time borrower OR weak social ties
- Only lend what you can afford to lose
- Expected default rate: >35%Risk Flags
Specific warnings lenders might see:
Flag
When Shown
🆕 First Loan
No repayment history
📈 Large Request
Loan >$500 with no history
⚠️ Past Default
Borrower defaulted before
👥 Weak Ties
Minimal social connection
Best Practices
For Lenders:
Start with Grade A-B loans
Diversify across multiple loans
Only lend to Grade E-HR if you know them
For Borrowers:
Start small to build Grade A status
Share with close friends first
Repay on-time
Next: Loan Constraints | Back to: Risk Scoring
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