> For the complete documentation index, see [llms.txt](https://docs.qiro.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.qiro.fi/products/qiro-marketplace/term-loans/how-does-it-work.md).

# How does it work?

1. **Proposal Submission**\
   Asset Originators submit loan proposals, including terms (loan amount, tenure, interest rate, repayment structure) along with credit data and details of real-world assets to be used as collateral.
2. **Credit Assessment**\
   Underwriters review the credit data, assess default risk, and publish credit reports with recommendations, including approval status and suggested interest rates.
3. **Asset Tokenization**\
   Upon approval, Asset Originators tokenize the underlying assets using Qiro’s tokenization platform.
4. **Pool Creation**\
   The Asset Originator is onboarded, a lending pool is created with a defined tranche structure and interest terms, and the pool is launched for capital formation. 
5. **Capital Formation**\
   Investors contribute capital during the formation period. The pool proceeds only if the target capital requirement is met.
6. **Capital Disbursement**\
   Once the pool target is fulfilled, Asset Originators can withdraw the funds for use as per the loan agreement.
7. **Repayments**\
   Asset Originators repay principal and interest as per the agreed repayment schedule.
8. **Investor Redemption**\
   Investors redeem their investments based on available pool liquidity or at pool maturity.