Ranking system
The Credit Rank system within BaseBank is designed to assess the creditworthiness of borrowers and determine the applicable interest rates for loans. There are five different ranks within the system, each associated with a specific range of credit points and corresponding interest rates.
| Credit Rank | Credit Points Range | Interest Rate per Day |
|---|---|---|
Unranked | 0 - 300 | 1% |
Very poor | 300 - 579 | 0.95% |
Fair | 580 - 669 | 0.9% |
Good | 670 - 799 | 0.8% |
Very good | 790 - 799 | 0.7% |
Exceptional | 800-850 | 0.6% |
Unranked (0 - 300) - Borrowers in this rank are considered to have no credit history. They are assigned an interest rate of 1% per day for their loans, reflecting the higher risk associated with lending to individuals in this category.
Very poor (300 - 579 points) - Borrowers in this rank are considered to have a very poor credit history. They are assigned an interest rate of 0.95% per day for their loans, reflecting the higher risk associated with lending to individuals in this category.
Fair (580 - 669 points) - Borrowers with a fair credit rank fall within the credit point range of 580 to 669. This rank indicates a moderate credit history, and borrowers in this category are eligible for a lower interest rate of 0.9% per day.
Good (670 - 799 points) - Borrowers in the good credit rank have demonstrated a solid credit history, resulting in a favorable interest rate of 0.8% per day. This rate reflects the reduced risk associated with lending to individuals with good credit.
Very good (790 - 799 points) - Borrowers with a very good credit rank have achieved an even higher level of creditworthiness. They benefit from a lower interest rate of 0.7% per day, indicating their strong repayment capability and credit reliability.
Exceptional (800-850 points) - The exceptional credit rank represents borrowers with an outstanding credit history. Individuals in this rank are granted access to loans, albeit at a higher interest rate of 6% per day. The higher interest rate for exceptional rank borrowers is designed to reflect the significantly reduced risk for lenders in this category.
To provide additional recognition and incentives, BaseBank awards exclusive non-fungible tokens (NFTs) to borrowers in each credit rank. These NFTs serve as a special present for borrowers, further distinguishing their creditworthiness and status within the platform.
New users will start as Unranked. When they accumulate enough CP, they will be whitelisted to mint NFTs of the next rank. Only after minting will they enjoy the benefits of the new rank.
The Credit Rank system ensures that borrowers are assigned appropriate interest rates based on their credit history, allowing for fair and personalized loan terms. It provides transparency and clarity in the lending process while incentivizing borrowers to maintain good credit behavior.
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