Access your Back Office at your fingertips.
Download the app now on Google Play Store.
Scan the QR code
You can also scan QR code with your phone to download the app.
How to assign a tier to your users
Updated
On this page
When a new borrower joins your platform, they start at a default access level. They can apply for loans within the limits your lowest tier allows. But not every borrower should stay at that level forever. Some complete additional KYC, demonstrate a strong repayment history, or qualify for a higher-value product. Others may need their access reduced.
Tier management on Lendsqr gives you a structured way to control what each borrower can do on your platform based on criteria you define. This guide explains how borrower tiers work operationally, when lenders change them, and how to assign or update a tier from the admin console.
Why borrower tiers matter in lending
Tiers are not just a categorization tool. They are a risk management and compliance mechanism that lets you match each borrower’s access level to their verified identity and repayment track record. Here are some possible use cases:
KYC progression: Many lenders use tiers to implement a graduated KYC process. A borrower who signs up with a phone number and BVN starts at Tier 1 and can access small, short-term loans. When they submit a government ID and selfie, they move to Tier 2 with higher loan limits. When they complete address verification and upload a utility bill, they reach Tier 3. The tiers help to group access to progressively more valuable products and ensure borrowers at higher tiers have provided more identity evidence.
Transaction and loan limits: Each tier you configure on Lendsqr carries its own limits. A Tier 1 borrower may have a maximum loan amount of ₦50,000. A Tier 2 borrower may have access up to ₦500,000. These limits keep your exposure proportional to the level of verification you have completed on each borrower.
Compliance with regulatory requirements: Regulatory frameworks in many markets require lenders to apply different KYC standards based on transaction value. A tiered system maps directly onto these requirements. Borrowers who want access to larger loan products must meet higher verification standards before they qualify.
Downgrade for risk control: Tiers can also move in the other direction. If a borrower defaults, misrepresents their information, or triggers a risk flag, your team can downgrade their tier to restrict their access to new loans while you investigate or manage the situation.
A practical example: tier progression for a micro-lender
A micro-lender onboards borrowers in three tiers. Every borrower starts at Tier 1 with a maximum loan of ₦20,000. When a borrower completes BVN verification and submits a national ID, a lender admin reviews their documents and upgrades them to Tier 2, unlocking loans up to ₦150,000. After two successful repayments at Tier 2, the borrower requests a larger loan. The admin reviews the repayment history, confirms the track record, and moves them to Tier 3, granting access to the higher-value product.
This progression ensures that borrowers earn access to larger loans by demonstrating identity and repayment behavior, rather than receiving them by default. For a broader explanation of what tier management is and how it fits into your customer onboarding flow, see what is tier management?
When to upgrade or downgrade a user’s tier
Upgrade a tier when the borrower has completed additional KYC requirements, submitted documents you have reviewed and approved, demonstrated consistent repayment behavior, or requested access to a product that requires a higher tier.
Downgrade a tier when a borrower misses multiple repayments without explanation, a fraud concern is raised on the account, additional verification fails or reveals a mismatch, or you want to restrict access while an investigation is ongoing.
A tier change takes effect immediately once saved. The borrower’s available loan products and limits update in real time.
How to assign or change a borrower’s tier in Lendsqr
After a tier is created on the Lendsqr admin console, you can assign that tier to a specific user based on your discretion. To do this, follow the steps outlined below:
On the Lendsqr admin console, navigate to the “Customers” sub-tab under the“Customer Management“tab
Filter for the specific user, and click to see their details.
On the customer’s details page, click on the “More” button
Click the “Manage Tier” button.
The system then displays a modal with a drop-down field of the tiers created. Whichever one the user is eligible for can be viewed and selected.
Once a tier is selected, enter the description or comments for the tier change and click on submit to save the changes made.
The user’s tier is then automatically upgraded, and the tier level is displayed as a group of stars on the user’s tier section beside the user name on the user’s profile, both on the admin console and on the mobile app.
How tiers display on the platform
Once assigned, a borrower’s tier appears as a group of stars beside their name on their profile page. A one-star rating represents Tier 1, two stars represent Tier 2, and so on, depending on how many tiers you have configured. This visual indicator lets your team quickly identify a borrower’s access level without opening their full profile.
