Repayment Time and Delinquencies

This sections tells about repayment data and delinquencies by the users which is included in their ongoing credit data with Kinn Finance included in the credit scoring model.

The standard credit period is 30 days. Once a user onboards, they have 30 days in which they can spend up to the credit limit. Once the credit period expires, the account is halted and is resumed under any of the two scenarios:

• The user fully pays off his/her credit debt with no additional interest and charges.

• The user pays a minimum deposit of 5% of the credit debt to resume services.

Once credit period is expired, the payment timeline is triggered which is set to expire at T+25 days. Once the credit payment time limit is reached, the credit interest starts accruing. Post timeline expiry, the users can pay off the credit debt anytime with the additional interest payments along with the principal which would be added to the debt each day.

Under the credit scoring model, repayment time is very important in regards to ongoing credit data score. If the users fail to pay back the credit debt in time, they hit a delinquency period which affects their credit scores. There are two delinquency trigger days for the users which are:

D1: T+55 days which is 30 days post credit payment expiry.

D2: T+115 days which is 90 days post credit payment expiry.

The score is is based on a rwarding and penalty system. The model rewards the score in case of regular payments however, it penalizes the score in case on non-payments, regular delinquencies or defaults.