# Universal Creditline
A`creditline` is a cumtom instrument dedicated to a single borrower entity, and would facilitate fixed-term unsecured lending or loans collateralized with any collateral. A borrower who meet the approval criterion will be able to drawdown from this custom creditline.
Every loan will go through the following protocol
### 0. Proposal
A borrower submits a proposal for a fixed-term loan and proposes the following information;
```
1. Principal borrowed
2. Interest to pay
3. Duration of the loan
4. Collateral or credit to be assessed
```
The information would be provided as input to the constructor of the new `creditline` contract, which would be deployed along with the new prediction market when the proposal is submitted.
### 1. Assessment
During the assessment, as the loan is a fixed term fixed rate instrument, managers will be able to buy `longZCB` at a price less than 1, and redeem it at a price of 1 when the loan matures. In this scenario a `longZCB` is akin to a (levered) zero coupon bond.
The initial price of `longZCB` s determined by the interest proposed by the borrower; the higher the interest proposed the lower the initial price.
### 2. Approval/Disapproval
When the `creditline` is [approved](https://limitless.gitbook.io/rammlend/products/universal-creditline/approval-criterion), the protocol's vault will supply to this `creditline` contract and the borrower can post collateral to make a drawdown.
###
How does this differ from the [Lendingpool](https://limitless.gitbook.io/rammlend/products/universal-lending-pool)? In a lending pool a borrower would be able to take out a loan instantly, if one of the pools in the protocol supports the collateral/condition of the borrower *or* the borrower's loan principal is under a threshold. If else, the borrower would have to propose an individual `creditline` where the managers will assess and buy `longZCB` on a case-by-case basis
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