Borrowing Capacity

This section explains the borrowing capacity model which caps the borrowing limit of a particular user.

Borrowing Capacity or Credit Capacity or Purchasing Power of a user is determined by multiple factors under Kinn Finance. Once, minimum credit eligibility is achieved and credit scores are calculated, the model determines the credit capacity of the users based on one or more of the three factors:

1. Proof of Income

2. Average Wallet Balance

3. Defi Data

Scenario 1:

In scenario 1, once the user determines a regular flow of monthly income, their borrowing limit is set at 0.8x of their monthly salary or other forms of income. Other factors after that are not taken into consideration for the borrowing capacity.

Scenario 2:

In scenario 2, the users income is not determined, therefore, the borrowing capacity is either kept at minimum or 0.5x of their average monthly wallet balance, whichever is higher.