Forum > Borrower Questions > Opinion
I have an idea to point out. Instead of Zidisha introducing the credit risk payment, which is too high for some entrepreneurs it may opt to charge only 5% credit risk fee and at the moment cease from taking any new applications for new members until its back on its feet. Because so long as people who come to the organisation become unfaithful, the credit risk payment will at one time become insufficient to fund all loans. My worries in regards to the recent move by the director, is that genuine business women and men who have built trust in the system are soon bound to loose hope.
I agree with you brother. People will began to loose interest in this finance due to the credit risk payments. This is too much.
It is not about loosing interest. It is about more unintended account defaults. It is a good step Zidisha is making but with higher consequences. Business men will need to have profit from the money lend to them hence needing to hold the money a longer time. This will reduce cash flow and hence declined lending capital. Kindly reconsider this please. When expediting service, credit risk and service fee are put together then you are more expensive than micro-finances although your best part is the repayment period is longer and charges are one off.
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