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

# Micro-Loans

> Flexible financing for creators to scale their projects using MESI as collateral.

Mesi provides a simplified lending framework designed specifically for creators. This program allows you to unlock liquidity for production costs, equipment, or marketing without selling your underlying **\$MESI** holdings.

## Application Requirements

To maintain a sustainable lending pool, Mesi operates on a monthly budget cycle. Once the monthly allocation is exhausted, further applications are closed until the following month.

* **Priority:** Applications are processed on a **first-come, first-served** basis.
* **Tier Constraints:** Your maximum borrowing limit is tied directly to your [Account Tier](/gamification/user-tiers-and-creator-limits).
* **Collateral (LTV):** You must provide a minimum of **300% collateral** in **\$MESI** tokens relative to the loan value.

***

## The Review Process

When you submit a request, Mesi's risk engine evaluates several factors beyond just collateral to ensure ecosystem stability.

### Loan Terms

Creators can customize their terms within the following ranges:

* **Duration:** 2 to 12 months.
* **Interest:** Rates scale based on the duration (longer terms = higher interest).
* **Approval Boost:** Providing collateral above the 300% minimum significantly increases the probability of instant approval.

### Evaluation Criteria

<CardGroup cols={2}>
  <Card title="Activity & Trust" icon="user-check">
    Verification of gallery engagement, content consistency, and account history.
  </Card>

  <Card title="Financial Performance" icon="chart-line-up">
    Assessment of past earnings and the viability of the proposed repayment plan.
  </Card>

  <Card title="Usage Intent" icon="circle-question">
    A clear description of how the loan will be used to grow the creator's presence.
  </Card>

  <Card title="Collateral Depth" icon="shield-check">
    The total value and stability of the **\$MESI** tokens offered as security.
  </Card>
</CardGroup>

***

## Application Outcomes

After review, your application will receive one of three statuses:

1. **Approval:** The loan is issued immediately to your wallet.
2. **Conditional Approval:** Pre-approved, provided you increase collateral or shorten the repayment period.
3. **Rejection:** The application is denied due to budget exhaustion or risk factors.

***

## Repayment & Liquidation

Mesi offers flexible repayment tools to help creators maintain their standing and protect their collateral.

### Repayment Methods

* **Manual Repayment:** Use the platform's debt management tool to pay in installments.
* **Auto-Pay:** Redirect a fixed percentage of your daily earnings and rewards directly toward the loan balance.

### Liquidation Risks

To protect the lending pool, **\$MESI** collateral may be partially or fully liquidated if:

* **Health Factor:** The collateral value drops below **200%** of the loan amount.
* **Delinquency:** The loan is not paid back within the agreed timeframe.
* **Tier Loss:** You lose the required [Account Tier](/gamification/user-tiers-and-creator-limits) during the loan term.
* **Compliance Violation:** Account suspension, copyright infringement, or prolonged inactivity.

<Warning>
  **Note on Volatility:** Because **\$MESI** is a market-traded asset, its value can fluctuate. Always monitor your collateral ratio to avoid automatic liquidation during market downturns.
</Warning>

<Frame caption="Micro-Loan Management Dashboard">
  <img src="https://mintcdn.com/mesi/H4xAASJreuQUVmZJ/.gitbook/assets/Micro%20loans.png?fit=max&auto=format&n=H4xAASJreuQUVmZJ&q=85&s=fef6c93ed9b769852046b1bd254908cf" alt="Micro Loan Interface" width="1486" height="532" data-path=".gitbook/assets/Micro loans.png" />
</Frame>

<Tip>
  **Borrowing Strategy:** Start with a small loan and a high collateral ratio (400%+) to build your "Trust Score." This will make future, larger loan approvals significantly faster.
</Tip>