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

# Credit Assessment

> Assess creditworthiness with TXCloud LendingRisk

## Overview

LendingRisk provides comprehensive credit assessment including alternative credit scoring, income verification, and affordability analysis — designed for emerging markets where traditional credit bureaus have limited coverage.

## Quick Start

<CodeGroup>
  ```javascript JavaScript theme={null}
  const assessment = await txcloud.lending.assess({
    applicant: {
      id: 'usr_abc123',
      first_name: 'Mohammed',
      last_name: 'El Amrani',
      date_of_birth: '1990-05-15',
      phone: '+212612345678',
      national_id: 'AE123456'
    },
    
    employment: {
      status: 'employed',
      employer_name: 'Acme Corp',
      monthly_income: 25000,
      income_currency: 'MAD'
    },
    
    loan_request: {
      amount: 100000,
      currency: 'MAD',
      term_months: 36,
      purpose: 'personal'
    },
    
    data_sources: ['bank_statements', 'bureau']
  });

  console.log('Decision:', assessment.decision.recommendation);
  console.log('Credit Score:', assessment.credit_score.score);
  console.log('Affordable:', assessment.affordability.affordable);
  ```

  ```python Python theme={null}
  assessment = txcloud.lending.assess(
      applicant={
          "id": "usr_abc123",
          "first_name": "Mohammed",
          "last_name": "El Amrani",
          "date_of_birth": "1990-05-15",
          "phone": "+212612345678"
      },
      employment={
          "status": "employed",
          "monthly_income": 25000,
          "income_currency": "MAD"
      },
      loan_request={
          "amount": 100000,
          "term_months": 36,
          "purpose": "personal"
      }
  )
  ```
</CodeGroup>

## Assessment Response

```json theme={null}
{
  "id": "lra_a1b2c3d4e5f6",
  "status": "completed",
  
  "decision": {
    "recommendation": "approve",
    "confidence": 0.87,
    "max_approved_amount": 100000,
    "suggested_term_months": 36
  },
  
  "credit_score": {
    "score": 720,
    "grade": "B+",
    "percentile": 75,
    "factors": {
      "positive": ["Stable employment", "Regular income", "Low debt"],
      "negative": ["Limited credit history"]
    }
  },
  
  "income_analysis": {
    "stated_income": 25000,
    "verified_income": 24500,
    "income_match": true,
    "income_stability": "stable"
  },
  
  "affordability": {
    "monthly_income": 24500,
    "monthly_expenses": 12000,
    "existing_debt_payments": 2500,
    "proposed_payment": 3200,
    "remaining_after_loan": 6800,
    "affordable": true,
    "dti_after": 0.23
  },
  
  "pricing": {
    "risk_tier": "A",
    "suggested_rate": 12.5,
    "rate_range": { "min": 11.0, "max": 14.0 }
  }
}
```

## Pre-Qualification

Quick check before full assessment:

```javascript theme={null}
const preQual = await txcloud.lending.prequalify({
  applicant_id: userId,
  monthly_income: 25000,
  existing_monthly_debts: 2500,
  loan_amount: 100000,
  loan_term_months: 36
});

if (preQual.likely_qualified) {
  // Proceed to full application
  showFullApplication();
} else {
  // Show alternative options
  showAlternatives(preQual.estimated_max_amount);
}
```

## Income Verification

Verify stated income from bank statements:

```javascript theme={null}
// Upload bank statements
const upload = await txcloud.lending.statements.upload({
  applicant_id: userId,
  documents: [{
    type: 'bank_statement',
    bank_name: 'Attijariwafa Bank',
    file: statementBase64,
    period_start: '2024-07-01',
    period_end: '2024-12-31'
  }]
});

// Get analysis results
const insights = await txcloud.lending.statements.getInsights(upload.id);

console.log('Average Monthly Income:', insights.income.average_monthly);
console.log('Income Stability:', insights.income.stability);
console.log('Expense Categories:', insights.expenses.by_category);
```

### Statement Insights

```json theme={null}
{
  "income": {
    "total": 147000,
    "average_monthly": 24500,
    "sources": [
      { "category": "salary", "amount": 147000, "percentage": 100 }
    ],
    "trend": "stable"
  },
  
  "expenses": {
    "total": 72000,
    "average_monthly": 12000,
    "by_category": [
      { "category": "rent", "amount": 30000, "percentage": 42 },
      { "category": "utilities", "amount": 6000, "percentage": 8 },
      { "category": "groceries", "amount": 12000, "percentage": 17 }
    ]
  },
  
  "debt_payments": {
    "total": 15000,
    "monthly_average": 2500,
    "identified_loans": [
      { "lender": "Credit Bank", "type": "car_loan", "monthly_payment": 2500 }
    ]
  },
  
  "financial_health_score": 78,
  "red_flags": [],
  "positive_indicators": ["Regular salary", "Healthy savings", "No overdrafts"]
}
```

## Affordability Check

Assess if a loan is affordable:

```javascript theme={null}
const affordability = await txcloud.lending.affordability.check({
  applicant_id: userId,
  monthly_income: 24500,
  monthly_expenses: 12000,
  existing_debt_payments: 2500,
  proposed_loan: {
    amount: 100000,
    term_months: 36,
    rate: 12.5
  }
});

console.log('Affordable:', affordability.affordable);
console.log('Monthly Payment:', affordability.monthly_payment);
console.log('DTI After Loan:', affordability.ratios.dti_proposed);

// Stress test
console.log('Still affordable at +2% rate:', 
  affordability.stress_test.rate_increase_2pct.still_affordable);
```

## Ongoing Monitoring

Monitor borrowers for risk changes:

```javascript theme={null}
// Subscribe to monitoring
await txcloud.lending.monitor.subscribe({
  borrower_id: userId,
  loan_id: loanId,
  alert_triggers: [
    'score_decrease_50',
    'missed_payment',
    'new_debt',
    'income_change'
  ],
  webhook_url: 'https://yourapp.com/webhooks/lending'
});

// You'll receive webhooks for alerts
// Event: lending.monitor.alert
```

## Credit Score Grades

| Grade | Score Range | Risk Level    |
| ----- | ----------- | ------------- |
| A+    | 800-850     | Excellent     |
| A     | 750-799     | Very Good     |
| B+    | 700-749     | Good          |
| B     | 650-699     | Fair          |
| C+    | 600-649     | Below Average |
| C     | 550-599     | Poor          |
| D     | 300-549     | Very Poor     |

## Data Sources

LendingRisk can use multiple data sources:

| Source            | Data Provided                    |
| ----------------- | -------------------------------- |
| `bank_statements` | Income, expenses, cash flow      |
| `bureau`          | Credit history (where available) |
| `telecom`         | Airtime usage, recharge patterns |
| `mobile_money`    | Transaction history              |
| `employer`        | Employment verification          |

<Tip>
  More data sources = more accurate assessment. Use bank statements when possible.
</Tip>

## Best Practices

<AccordionGroup>
  <Accordion title="Start with Pre-Qualification" icon="filter">
    Use prequalify endpoint to filter applicants before full assessment.
  </Accordion>

  <Accordion title="Request Bank Statements" icon="file-invoice">
    Bank statements provide the most accurate income verification.
  </Accordion>

  <Accordion title="Consider Stress Testing" icon="chart-line-down">
    Always check if loan remains affordable under stress scenarios.
  </Accordion>

  <Accordion title="Monitor Active Loans" icon="eye">
    Set up monitoring for early warning of borrower risk changes.
  </Accordion>
</AccordionGroup>

## Next Steps

<CardGroup cols={2}>
  <Card title="Business Verification" icon="building" href="/guides/business-verification">
    Verify business entities
  </Card>

  <Card title="API Reference" icon="code" href="/api-reference/overview">
    Explore LendingRisk endpoints
  </Card>
</CardGroup>