Forum > Borrower Questions > Credit Rist Payments Forum Guidelines

  • Volunteer Mentor

    Mar 23, 2018

    I am not clear about this credit risk payments. And l will be happy if someone explain it better to me.
    Zidisha charges 5% service fee on any loan disbursement. Now after this ,zidisha has also introduce 10% credit risk payment fee making 15% interest rate charges on loans.
    My idea is that; if 5% intrest rate charges is too small for zidisha, they should make it 10% and stop the credit risk payments.
    If this supposed to stay, then l think the 10% credit risk payment should be refundable after the applicant have finished payments of all his loans.
    Credit risk payments is like insurance or commitment fee deducted by bankers on loans. This amount is usually refund when loan payments completes due to the fear that the person may not repay the loan. The last time a borrowed an amount of Ghc 2,000.00 from a bank was in the year 2016 for agriculture business, my bank charge me an interest of 10% for the repayment two year before l was introduce to zidiha by Kusi. I thought this will help me grow my business because 5% rate was far better than 10%.Now there is 10% credit risk payments in addition of 5% service fee %(5+10)=%15,then zidisha rate of interest is much higher than some banks.
    Zidish should make the credit risk payments refundable or increase the service fee and removed the credit risk payments. Those who are trustworthy and have 100% repayment rate should not be charge credit risk payments .l am still not getting it, how can a person who has been trusted in zidish about 3 year or more and havr 100% repayment score still be charged with credit risk payments?
    Zidish is a financial service to help we business men grow our business and we are grateful hence they should lower thinks for we committed clients.
    Thats is my view madam Julia.
    Thanks and God bless you.!!!

    • Country Liaison
      Laurie
      United States

      Mar 24, 2018

      First, just want to clarify for you that Zidisha does not charge any *interest* at all on any loans. Although banks and some other lending organizations usually charge INTEREST *and* FEES, Zidisha charges FEES ONLY. All Zidisha loans are extended at 0% interest rate. Please be accurate about your terminology. Thanks.

      Secondly, re: "Zidisha is a financial service to help [us] businessmen grow our businesses..." Zidisha is a financial service to help businessmen *and* businesswomen grow their businesses, as well as to help students with their fees, and families with healthcare costs, etc. It is not only for businessmen. It also is not only for young entrepreneurs, as I have seen some borrowers claim. It is for *all* people, of *both* genders, and of *all* ages, with many different types of legitimate financial needs. ;-)

      Thirdly, you are correct to address your inquiries about the new 10% Credit-Risk Fee to Julia. She considers everyone's feedback and it is she alone who decides on and sets the policies. ;-)

      Best wishes,
      Laurie

    • Director
      Julia
      United States

      Mar 25, 2018

      Hi Fath, thank you for the feedback. Was the bank interest rate a monthly or annual rate?


      • Volunteer Mentor

        Mar 25, 2018

        They gave it to me one year for that interest through negotions with them but not their normal rate of interest.


      • Volunteer Mentor

        Mar 26, 2018

        Annual rate. Through negotiations with the bank they told me l will pay a penalty of 25% in addition if l couldn't complete payments within the year. I use that some of money for seedlings in my maize plantation and fortunately for me l was able to complete payments within 5 months. Please help us.


      • Granvile Wambugu
        Gateiguru, Kenya

        Mar 27, 2018

        Kindly address the issue of repayment. Nowadays, it remains unchanged despite the number of times you make on time repayment



  • Volunteer Mentor

    Mar 25, 2018

    Thanks Laurie!My invior's first lender as he told me. I am an agriculture business man. Zidish do not charge interest rate and banks does, l understand that perfectly. My problem is that nowadays the deductions in zisdisha can be compare equally as banks interest rate charges since they are all deduction. The bank that l use to borrow with nagotions gave me an interest rate of 10% of an amount of Ghc 2,000.00 but now zidisha deduction is now 15% when calculated.The one who invited me to this platform told me zidisha has zero percent interest rate.
    Anyway l understand that its coming from the director Julia and l aggrey.l am just pleading with Julia the president to stabilize the deductions for us.


    Kusi Obodum and Darius Mukabwa like this.
    • Country Liaison
      Laurie
      United States

      Mar 26, 2018

      Hi, Fath. The following quote, from your original post above, is why I thought you didn't understand it perfectly yet; you wrote: "Now after this, Zidisha has also introduced 10% credit risk payment fee making 15% interest rate charges on loans." So, I was just clarifying that, no, it does not make it a 15% interest rate. It makes it a 15% flat fee that gets charged. An interest rate and a flat fee are two different things. Banks charge interest rates and usually also fees. Zidisha charges only fees, and never any interest. That's why we say Zidisha charges 0% interest rate, because that is the case.

      At this link (), you can see an example of "interest rates" (and of "annual percentage rates" ["APR"s], which are different from each other, too). You also will see that the bank additionally charges "fees", which are not the same as charging an "interest rate" or an "APR". The three things are different from one another.

      At Zidisha, on any particular obligation, the fee or fees charged (plus the Net Disbursement, of course) are what you remit, over time. You do not remit anything more (or less) than what is stated up front, no matter if you adjust your installment amounts and take a longer (or shorter) amount of time to complete the obligation than initially intended.

      If there were an "interest rate" charged, then the amount you would remit over time, if you were to take longer, could possibly be more, if I am not mistaken.

      Anyone who is better educated than I am about the differences between "interest rate" (and "annual percentage rate" if you want to go there, too... which Zidisha also does not charge), and "fees", please do. :-)

      So, Fath, it is just that I was asking you to be accurate about the terminology you use when you write about Zidisha loans. Accurate would have been: "Now, after this, Zidisha has also introduced 10% credit-risk payment fee, making 15% flat fee charged on loans."

      That's all I meant. ;-)


  • Volunteer Mentor
    Darius Mukabwa
    Eldoret, Kenya

    Mar 25, 2018

    Let them just increase service fee from 5℅ to10℅, and remove this credit risk.


  • Volunteer Mentor
    Dancan Mongare
    Nakuru, Kenya

    Mar 27, 2018

    I feel 15% is so high too. And people are going to quit and get back to the banks as their credit limit is more stable than the fluctuating zidisha's.


    Kusi Obodum and Steve Miyienda like this.

  • Volunteer Mentor
    Agyeiwaa Adwoa
    Atebubu, Ghana

    Mar 27, 2018

    Please l also support what my brother Fath is saying but all that l we are pleading with you to reduce the fees to 10%thank you


    Kusi Obodum likes this.

  • Oppong Stephen
    Accra, Ghana

    Mar 27, 2018

    i am also not happy about the credit risk payment of 10% which is high fees for borrowers and i am pleading with the director Julia and zidisha team to do something about it to reduce it because charging credit risk fees of 10% and service fees 5% is the same as bank interest rate but just only the name which differs .i am aware that the lending capital for zidisha has been reduced and i hope due to defaulters but the fee charge is to high for the borrowers.
    Secondly , the basic credit limit has also been reduced and the bonus and i am agreed that the basic credit and the bonus are determine by the zidisha but that also encourage some of the default borrowers to repay their loans to help the organization.
    Thirdly we all aware that goyimei.infoanization is facing a lot challenges of lending capital to lend the borrowers and many technical error which cause declined of some borrowers and they spread the frustration to their friends and that also discourage them to repay their loan too.i want to suggest to goyimei.infoanization that polices making should not only one person (i mean the julia the director) alone and it should collective ideals from ,1. the zidisha team 2,The lenders and 3.The borrowers.i hope this will help to make goyimei.infoanization sustainable but if it continues like this in fact i am afraid zidisha has no future and it will collapse because many borrower now not happy about the polices that initiated by the director Julia .i am suggest that the credit risk fees should reduce to 5% and the service fee 5% making 10% in all.i know zidisha is none profitable organization and for that matter there is no tax pay to the Government .


    Kusi Obodum likes this.

  • Daisy Cheruiyot
    Nakuru, Kenya

    Mar 28, 2018

    thats fine if the loans will be funded in time. so no one should say that zidisha doesnt charge interests. and banks do. same thing
    different names.at the end end of the day the extra charge is placed on the borrower same way banks charge interests on loans


    • Country Liaison
      Laurie
      United States

      Mar 29, 2018

      There is a difference between (a) an interest rate, (b) an annual percentage rate (APR), and (c) flat fees. Zidisha does not charge (a) or (b); Zidisha charges only (c).

      When a bank charges you interest, you possibly would pay more or possibly would pay less over the total duration of your loan than you would pay in flat fees for the loan somewhere else. Usually you would end up paying more.

      I again refer you to this post: goyimei.info/forum-threa... (thread 1776, comment 6500) and to: If you read closely, you will understand that there ARE differences.

      Two of the differences, too (but not the only differences), are that usually banks charge both Interest AND Fees, but Zidisha charges Fees ONLY, and Zidisha also allows you to adjust your installment amount, when necessary (I don't know of any bank that allows a borrower to do that).


  • Steve Miyienda
    Daraja Mbili, Kenya

    Mar 29, 2018

    Hallo Zidisha, is the credit risk payment refundable once's someone has met his/her obligations?


    Samwel Nyangi likes this.
    • Country Liaison
      Laurie
      United States

      Mar 29, 2018

      It is my understanding, Steve, that the Credit-Risk Fee is non-refundable.
      (Please correct me, Julia, if I'm wrong.)



  • Arnold Adero
    Kisumu, Kenya

    Mar 29, 2018

    Apparently I clicked on Something called Expedite Loan: and I was Charged an Extra 10% :-(

    In total I was deducted 25% ;-(

    1. Service Fee: 5%
    2. Credit Risk Fee: 10%
    3. Expedite Loan Fee: 10%

    I guess we should all be careful when dealing with Zidisha Terms. Nway I got My loan and I am grateful.


    Fitri Fauziyah likes this.
    • Volunteer Mentor
      Fitri Fauziyah
      Kota Surabaya, Indonesia

      Mar 29, 2018

      Expediting service is not free, as it is give you guarantee to fully funded your loan directly after you choose to agree the service. But if Zidisha team unable to send the money in 3 days, they will refund the expediting service fee to your account in separate transaction.

      Yes, always read carefully with everything you deal in. Not only in Zidisha, but in everything. Different place/things can have different meaning in other situation. And fyi, the expediting service rate is vary between 10% -15%. I don't know how Zidisha determined this. :-)

      Translated by Google     Show original

      Expediting service is not free, as it is give you guarantee to fully funded your loan directly after you choose to agree the service. But if Zidisha team unable to send the money in 3 days, they will refund the expediting service fee to your account in separate transaction.

      Yes, always read carefully with everything you deal in. Not only in Zidisha, but in everything. Different place/things can have different meaning in other situation. And fyi, the expediting service rate is vary between 10% -15%. I don't know how Zidisha determined this. :-)


      Laurie likes this.
      • Country Liaison
        Laurie
        United States

        Mar 29, 2018

        I recall seeing somewhere an explanation of how it's calculated, but I don't recall what it said or where it was. Unfortunately, we don't have a search feature here in this newer Forum yet. I checked the FAQs, but information about that is not there yet: goyimei.info/faq#faq-70 (It's a fairly new option, so maybe Julia will be adding information about the Expediting Fee there soon.)


        Fitri Fauziyah likes this.
      • Volunteer Mentor
        Fitri Fauziyah
        Kota Surabaya, Indonesia

        Mar 29, 2018

        The FAQ updated then.
        As long as when the borrower click * for more information about expedite service*, not directly fund their loan, so they have the opportunity to read it then it's okay in my opinion.
        It's optional, so it's all borrower choice to take it or not and not all account meet this service. ;-)

        Translated by Google     Show original

        The FAQ updated then.
        As long as when the borrower click * for more information about expedite service*, not directly fund their loan, so they have the opportunity to read it then it's okay in my opinion.
        It's optional, so it's all borrower choice to take it or not and not all account meet this service. ;-)



  • Joost
    Noord Brabant, Netherlands

    Apr 1, 2018

    Please look at the announcement section.
    According to Julia’s latest post the “credit risk payments” are now refundable.
    goyimei.info/forum-threa...


    Fitri Fauziyah likes this.

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