# Product Overview

### **💰 Invest and Earn Interest in Pencil Finance**

With Pencil Finance, individual and institutional investors can:

* **Browse curated loan bundles** created by verified lending partners from around the world.
* **Choose from two types of tokens**:
  * **Senior Tranche (Grow Token)** – Lower risk, fixed return, paid at the end of the staking period.
  * **Junior Tranche (NFT)** – Higher risk, higher yield, with monthly or quarterly interest payouts.
* **Track their portfolio** via a personalized dashboard showing returns, bundle status, token value, and transaction history.
* **Withdraw interest or redeem tokens** based on bundle structure and maturity terms.

By participating, investors earn competitive yield while helping students access affordable education.

### **🏫 Lend and Raise Funds in Pencil Finance**

Verified student loan companies (lending partners) can:

* **Tokenize their student loan portfolios** into investable bundles using a transparent, structured process.
* **Create bundles** with customizable parameters (total amount, tranche ratio, interest rates, maturity period).
* **List bundles** on the Pencil Finance platform to raise funds from a global pool of DeFi investors.
* **Manage bundles** through a dedicated dashboard:
  * Withdraw loan capital as needed
  * Deposit repayments and interest
  * Post updates and financial reports

Lending companies gain access to **non-dilutive, flexible capital**, reduce dependence on traditional financial intermediaries, and improve trust through transparent repayment tracking on-chain.
