Forum > Announcements > Credit risk payments Forum Guidelines

  • Director
    Julia
    United States

    Mar 7, 2018

    Starting this week, new loans will be asked to make a 10% credit risk payment into the Members Loan Fund.

    Zidisha is a nonprofit organization, and we continue to be committed to maximizing value for our members rather than generating profits for the organization. As with the membership fees for first-time borrowers, 100% of the credit risk payments will be credited back to the pool of lending capital; none of it will go to Zidisha's staff or operating expenses.

    Up until now, Zidisha loans have carried only a 5% service fee. This has kept the loans very low cost, and thanks to our lean operating budget, has been sufficient to cover the expense Zidisha incurs to administer the loans.

    The problem with the very low fee structure is that it limits our ability to grow the supply of lending capital. Since most of the 5% service fee is needed to cover operating costs, it cannot be credited back to the lending fund. As a result, our supply of lending capital is not growing quickly enough to accommodate all of the borrowers who are applying for funding.

    Historically, we have filled the gap by raising donations. However, our community has now grown to the point where we need larger amounts of capital than is normally given as a donation.

    Returning credit risk payments to the pool of lending capital will help us fund more loans in two ways: 1) it will directly grow the supply of lending capital via compound growth, and 2) it will make us better placed to raise funding from impact investors and others who are looking for a modest financial return, or need to preserve the value of their capital against inflation and currency exchange losses.

    Many in this forum have commented that they would prefer to pay higher fees in return for greater certainty that their loan applications would be funded. The intent is that this change will improve our long-term growth potential, so that we can continue to be a reliable source of lending capital for our members.

    Edit: As of March 11, the credit risk fee is waived for first loans, because the membership fee is already being deducted.

    Like optional Members Loan Fund payments, the credit risk fee payments are refundable to the borrower once the loan is repaid.

    Edit: The credit list payment amount now varies depending on each borrower's repayment history and credit risk level.

    • Volunteer Mentor
      Christian Golo
      Accra, Ghana

      Mar 8, 2018

      There is joy in my heart as I read this message and I'm glad that there is new hope for we the borrowers. I say thank you to Director Julia. God richly bless and reward all your efforts in your quest to make the have not find something meaningful doing with the assistance of Zidisha micro lending.
      Day and night I'm short of words to express my gratitude to God for you, for your mission and vision about Zidisha. Your introduction of Zidisha was timely and the best in micro lending to save those in the developing countries.
      My prayer always is that God Almighty protects you, the Zidisha Team members and all the Lenders for the years ahead, and that all proposals to increase donations into Zidisha be successfully.
      Thank you.


      Deryl Wesonga likes this.
    • Volunteer Mentor
      Kossonou Yao
      Kumasi, Ghana

      Mar 8, 2018

      Thanks to Julia and her team. You do not hesitate to let us know the problems that arise at Zidisha.You are always ready to find a solution with your team.I have no words to describe your person. But allow me to tell you that God bless you.


    • Nyarko Gyimah
      Takoradi, Ghana

      Mar 9, 2018

      Director weldone. This is a prudent measure to entice lenders and to sustain this scheme. Is a win win situation for all

    • Addai Charles
      Berekum, Ghana

      Mar 10, 2018

      Julia,may I know the criteria for selecting a loan which is to be found from the wait list.?
      My second question is that if a loan found in the projects loan expires without funding ,is the person's loan going to be amount the waiting list or will be automatic reactivate?


    • Volunteer Mentor
      Su Rono
      Grobogan, Indonesia

      Mar 11, 2018

      Thank you julia director, very useful information for all members of zidisha, zidisha remains best

      Translated by Google     Show original

      Terimakasih direktur julia , informasi yang sangat berguna untuk semua anggota zidisha , zidisha tetap terbaik


    • Hadi Riyana
      Bekasi, Indonesia

      Mar 19, 2018

      I"m sorry before madam Julia .. I just want a proposal only, whether it can be for the cost of the risk in small to be 5% too. So balance and I think it"s fairer for us, especially me who is pioneering the business. Why I prefer zidisha from the bank, because I hope zidisha can be an alternative loan without interest .. apologize if I am not polite Thank you

      Translated by Google     Show original

      Mohon maaf sebelumnya madam Julia.. saya cuma ingin usul saja, apakah bisa untuk biaya resikonya di perkecil jadi 5% juga.jadi imbang dan saya rasa itu lebih adil buat kami, terutama saya yang sedang merintis usaha. Kenapa saya lebih memilih zidisha dari pada bank, karena saya berharap zidisha bisa menjadi alternatif pinjaman tanpa bunga.. mohon maaf jika saya tidak sopan
      Terima kasih

      • Volunteer Mentor
        Kusi Obodum
        Kumasi, Ghana

        Mar 21, 2018

        I think the credit rist charges should be refundable when l member finishes repayment of all loans.


        Samwel Nyangi and Deryl Wesonga like this.
    • Volunteer Mentor
      Kusi Obodum
      Kumasi, Ghana

      Mar 21, 2018

      Again those who have 100% repayment records should not be charged risk charges. So our President Julia should make the arrangements again. Thanks.


      Edwin Kiarii, Julie and Emmy Jemeli like this.
      • Julie
        Free-attle, United States

        Mar 23, 2018

        That's an interesting proposition, Kusi. Borrowers with a 90% or better repayment record are very low risk.


        Edwin Kiarii and Samwel Nyangi like this.
        • Samwel Nyangi
          Nairobi, Kenya

          Mar 30, 2018

          hello julie
          i trust you're alright
          does it mean borrowers with 90% and above should not pay credit risk


      • Volunteer Mentor
        Fitri Fauziyah
        Kota Surabaya, Indonesia

        Mar 23, 2018

        I'm sorry, but I disagree with that. if we look only on their on-time score, 90% or more it's look like they are low risk. but I've seen many borrowers whose on-time score 90% or more who having fast pace loan are defaulted, fast pace mean when actually they choose to fully repay their loan for about 4 month or so, they will fully repaid it in about one week/ one month or so. looking on the number inside parenthesis too not a guarantee, but it sure show how long their time become zidisha member and their way paying their loan ontime. I have seen a borrower who even their statue late, he still paying his loan regularly. I think his profile shown few days ago in project update.
        It depends on borrowers attitude to honour their obligation to Zidisha and their lenders. Paying loan fast sure give lenders ability to funds the others more, but I think I have read Dave, Joost said that when borrowers have their schedule on the track and they have more income, it will better for them to invest their money on other things so they can have more profit or get more benefit from the money they loan from Zidisha. just my opinion.

        @ Kusi. as on the FAQ page, Zidisha will give the same respect to anyone members here. Giving special treatment to borrowers who have ontime score 100% will defeat that purpose. The reason credit risk, MLF have to exist because borrowers are not honour their obligation to Zidisha, lenders and them self as Auntie Laurie mention. It better we inform our mentee, our invitee the important mean borrowers honour their obligation to Zidisha, lenders and them self. knowing that Zidisha wish that all borrowers have 5 years max to fully repay their loan, adjust installment there to help them when they are in difficult time so they can reduce their installment that suit their condition until they able to stand on their feet again not plaything. When you see someone who will bring harm to this community, inform Zidisha with the proof.

        Translated by Google     Show original

        I'm sorry, but I disagree with that. if we look only on their on-time score, 90% or more it's look like they are low risk. but I've seen many borrowers whose on-time score 90% or more who having fast pace loan are defaulted, fast pace mean when actually they choose to fully repay their loan for about 4 month or so, they will fully repaid it in about one week/ one month or so. looking on the number inside parenthesis too not a guarantee, but it sure show how long their time become zidisha member and their way paying their loan ontime. I have seen a borrower who even their statue late, he still paying his loan regularly. I think his profile shown few days ago in project update.
        It depends on borrowers attitude to honour their obligation to Zidisha and their lenders. Paying loan fast sure give lenders ability to funds the others more, but I think I have read Dave, Joost said that when borrowers have their schedule on the track and they have more income, it will better for them to invest their money on other things so they can have more profit or get more benefit from the money they loan from Zidisha. just my opinion.

        @ Kusi. as on the FAQ page, Zidisha will give the same respect to anyone members here. Giving special treatment to borrowers who have ontime score 100% will defeat that purpose. The reason credit risk, MLF have to exist because borrowers are not honour their obligation to Zidisha, lenders and them self as Auntie Laurie mention. It better we inform our mentee, our invitee the important mean borrowers honour their obligation to Zidisha, lenders and them self. knowing that Zidisha wish that all borrowers have 5 years max to fully repay their loan, adjust installment there to help them when they are in difficult time so they can reduce their installment that suit their condition until they able to stand on their feet again not plaything. When you see someone who will bring harm to this community, inform Zidisha with the proof.

        • Country Liaison
          Laurie
          United States

          Mar 24, 2018

          Quick note, Fitri Fauziyah:

          That's only part of the reason. As Julia, our Director, mentioned, a reason is because the number of borrowers (and, hence, loan requests) has increased much faster than the number of lenders (including not just average lenders, but also high-donor benefactors who help the platform) and their ability to fund loans.

          As I mentioned, *part* of the reason for that is that not all borrowers have been honoring the obligation they made to Zidisha and to their lenders.

          So, yes, it is important to encourage borrowers always to honor the obligation with regular, on-time remittances, even if they have to adjust to the smallest installment permitted. It's always better to send in something regularly than ever to skip remittances.

          In my personal opinion, something else that probably has to happen (and maybe already should have happened) to ensure Zidisha's success is that a halt on accepting new borrowers possibly may have to occur whenever the indications are that there likely would not be enough lending capital to fund the volume of loan requests. (I'm not sure that adding more fees is the answer to that problem. Time will tell.)

          While it may seem a "good" and "successful" thing that an organization has grown to "x" number of "customers" (borrowers, in Zidisha's case), whether or not that's actually a positive thing depends on the organization's actual ability to serve those "customers" in the manner expected (which here means in the way that occurred in 2015, for example).

          This is just my opinion, and I think our Director and others may not agree with this; and they probably know things here that I don't know.

          Thank you (and other VMs), again, for encouraging your "mentees" always to send in their remittances on time. That is very important, no matter what else is being done to try to mitigate the current situation at Zidisha.

    • Volunteer Mentor

      Mar 23, 2018

      Madan Julia. I may ask. Is this credit risk payments refundable?


      Samwel Nyangi likes this.
      • Country Liaison
        Laurie
        United States

        Mar 24, 2018

        I think the 10% credit-risk fee is not refundable.
        (Julia, please correct me if I'm wrong.)


        Samwel Nyangi and Abdul Aziz like this.
        • Samwel Nyangi
          Nairobi, Kenya

          Mar 30, 2018

          how about MLF? is this refundable as well?


    • Mar 29, 2018

      I support your opinion on the new policy since it is a sure way to grow the lending capital to meet the continually growing demand for loans


    • Volunteer Mentor
      Daniel Malului
      Ngong, Kenya

      Mar 31, 2018

      Dear Julia,
      I concur with you .this will have a greater growth in the long term.Good work from you and the entire team,may God bless you


    • Volunteer Mentor
      Helen Japra
      Surabaya, Indonesia

      May 12, 2018

      The cost of credit risk is different for everyone, I see up to 20% credit risk

      Translated by Google     Show original

      Biaya resiko kredit apa berbeda setiap orang, ada saya lihat sampai 20% biaya resiko kredit



  • Volunteer Mentor
    Geoffrey Waweru
    Miti Mingi, Kenya

    Mar 7, 2018

    Thanks a lot Julia ,think the move will be positive, I have already made 4 applications now without funding,the most recent expired yesterday with only 1% funding, I now believe that this good change will see my application through this time round



  • Volunteer Mentor
    John Thiaro
    Nakuru, Kenya

    Mar 7, 2018

    Hi Julia,

    I totally agree with you on this initiative. There is an urgent need for raising the lending capital and this should also be on our shoulders as borrowers, otherwise, these noble idea will not be sustainable and most loans may continue getting less than 100% funding.


    Samwel Nyangi likes this.

  • Volunteer Mentor
    Mimin Munawaroh
    Cilacap, Indonesia

    Mar 7, 2018

    Dear Julia,
    Thank you for the changes you made to a better Zidisha
    hopefully in the future more and more members who smile happy because the loan is funded and reduce the sadness story caused by the loan expired repeatedly.

    HAPPY INTERNATIONAL WOMEN'S DAY (March 8, 2018) for you and other "women warriors" behind the scenes of Zidisha

    "Optimism is the faith that leads to achievement."- Helen Keller

    "Think like a queen. A queen is not afraid to fail. Failure is another stepping stone to greatness."- Oprah Winfrey

    Translated by Google     Show original

    Dear Julia,
    Thank you for the changes you made to a better Zidisha
    hopefully in the future more and more members who smile happy because the loan is funded and reduce the sadness story caused by the loan expired repeatedly.

    HAPPY INTERNATIONAL WOMEN'S DAY (March 8, 2018) for you and other "women warriors" behind the scenes of Zidisha

    "Optimism is the faith that leads to achievement."- Helen Keller

    "Think like a queen. A queen is not afraid to fail. Failure is another stepping stone to greatness."- Oprah Winfrey


    Laurie, Rochmad Sumiati and Joost like this.

  • Joost
    Noord Brabant, Netherlands

    Mar 7, 2018

    Below an example of a new loan with a credit risk payment.

    • Edward Njoroge
      Mazeras, Kenya

      Mar 9, 2018

      Thank you for this example.I welcome this good idea which will help zidisha.


    • Volunteer Mentor
      George Kiio
      Muthwani, Kenya

      Mar 9, 2018

      Hey Joost,
      So the total cost per loan application is 15%? Is it one time, refundable...?
      Its a good idea for growing the company but with both negative and positive impacts.

      • Volunteer Mentor
        Fitri Fauziyah
        Kota Surabaya, Indonesia

        Mar 10, 2018

        I think every loan fee will be 15%, Not just one time but on every loan we apply. I don't think credit risk refundable eventhought that payment sent to member loan fund. The name it self already different.
        I maybe wrong understanding Julia information.

        Translated by Google     Show original

        I think every loan fee will be 15%, Not just one time but on every loan we apply. I don't think credit risk refundable eventhought that payment sent to member loan fund. The name it self already different.
        I maybe wrong understanding Julia information.


        Samwel Nyangi, Alex Tsuma and Julie like this.
      • Noah Ngeny
        Kericho, Kenya

        Mar 11, 2018

        It's no longer worthy, other profitable lenders are no cheaper


    • Volunteer Mentor
      Su Rono
      Grobogan, Indonesia

      Mar 11, 2018

      Thanks also for joost

      Translated by Google     Show original

      Terimakasih juga untuk joost


      • Volunteer Mentor
        Jared Ondieki
        Nyamira, Kenya

        Mar 13, 2018

        This is not a good idea for us Kenyans, banks charge fee of 14% interest and now you are charging 15% what is the difference now. As you say its non profit.......its not non profit as per the percentage you imposed. If it was a must you could have charged new members or just charge 10% or less. Even self help groups in Kenya charge to its members to loans less than or equal to 10% interest. This cant boost young interprenuers and the organization to serve as to the objective you started. This is discouraging

        • Volunteer Mentor
          Robert Mugo
          Mishomoroni, Kenya

          Mar 14, 2018

          Point of correction, Banks charge 14% per year besides other charges. Zidisha's rate is 15% even if the loan takes more than one year to repay and to me that makes a big difference between the two lenders.


          Samwel Nyangi likes this.
        • Barnabas Omondi
          Machakos, Kenya

          Apr 9, 2018

          rem also Sacco which also charge 1% on reducing balance but here is a case where by we pay say 15% per month on loans below 5000, i cant see any fieriness here


          • Fredrick Ratemo
            Nairobi, Kenya

            May 21, 2018

            Those ranting above on Ondieki's post now answer this gentleman. when you impose 15 % fee on five thousand you are just attracting mass exodus, and the number of defaulters will be many. Just read well on what happened in the 2007 global financial crisis.


        • Volunteer Mentor
          Duncan Nduati
          Thika, Kenya

          Aug 20, 2018

          In my opinion, if you may get better rates locally why bother zidisha. its my opinion that, 15% rate is fare and you will not get it anywhere in kenya for non secured loans. to get the same loan in local financial institutions in kenya you may need to have more than 4 guarantors with more saving in the same institutions to act as your guarantor and would pay the loan in case you default payments. those local rates look attractive on prime time news but step in that bank and realize you need to prove you have more than the money you are asking for.



  • Eric Boadi
    Nobekaw, Ghana

    Mar 7, 2018

    Thank you director for your innovative idear
    I think any change that will benefit the borrower and also lead to the sustainability of the organization Is welcomed. At the end , we want to see our loans funded. Thank you.


    Nathan Mureithi likes this.

  • Mar 8, 2018

    I support this initiative because it would improve the operationalability of Zidisha and speed up the waiting time of processing loans.



  • Volunteer Mentor
    Francis Mwangi
    Kayole, Kenya

    Mar 8, 2018

    A good initiative will also help in sorting out serious people and reduce bad debts



  • Volunteer Mentor

    Mar 8, 2018

    Thank you very much for coming up with ways and ideas that will make Zidisha a better place. I have been following your announcements and I can see you are very wise and open to the members advice. This idea is also a way for us (borrowers) to even give back to Zidisha and even feel part of the organization in a very special way. We need not just to be happy and content that we have been assisted, we also need to be willing to assist others, of which I see this as being one of the ways. As we grow, we learn and improve the way we do things. When lending capital grows, loan funding will not be delayed. At times when you post for a loan to be funded, you don't just budget for funds but also time. Some delay may make one not to hit the target that they have planned for. This idea is good and welcomed. Thanks.


  • Volunteer Mentor
    Agyeiwaa Adwoa
    Atebubu, Ghana

    Mar 8, 2018

    Thank you madam Julia for at long last finding a lasting solution to the problem at hand which was lending capital to fund loans. I think this initiative will motivate more lenders investors and individual to come on board to support and l am happy that madam Julia, Laurie and the entire staff have vision for long life span for this honourable community. Please madam Julia l would also plead with you to improve the system too much error here and there and also countless decline of loans without concrete bases thank you and may God bless Julia, Laurie and the entire staff


  • Martin Kimani Mwangi
    Bahati, Nakuru, Kenya

    Mar 8, 2018

    Happy International Women's Day, Madam Director. You remain a heroine to be ever celebrated globally and eternally. I also express my gratitude for introducing a very wonderful measure for the betterment of Zidisha fraternity. I am sure that the move will enhance the operations and address the many prevailing gaps. I am sure the move offers tripartite benefits to the Lenders, Members and the Zidisha Team. Kudos!
    Best Regards,
    Martin


    Purity Mwirigi likes this.

  • Addai Charles
    Berekum, Ghana

    Mar 8, 2018

    I support the initiatives 100%. I hope that will be of interest of both the lenders and the borrowers and Zidisha organization as well.


    • Volunteer Mentor
      Jared Ondieki
      Nyamira, Kenya

      Mar 13, 2018

      it will not benefit much to borrower as this will encourage people with bad faith to be defaulters. I dont know how loan interests are charged in your country but 15 % for what you borrow in the name of empowering intreprenuers will not help a small business. but i respect you decision bro.


  • Basil Emmanuel Apiiga
    Bawku- Zebilla, Ghana

    Mar 8, 2018

    I believe the effort on actualizing this idea is welcome and a good one of course for us all. We hope it will turn around the fortunes of our noble organization and its going concern. I have also been on one accord with this suggestion, higher fee in return for greater certainty and certainly that !



  • Collins Chilluba
    Lusaka, Zambia

    Mar 9, 2018

    I only received 10zmw but I agreed to receive 60 and pay back 500zmw can you help me with this


    • Country Liaison
      Laurie
      United States

      Mar 21, 2018

      Hello, Collins,

      The answer is because of the Fees. In flexible installment payments (*remittances*), you would be *paying* the Fees and *repaying* the Net Disbursement (which are what comprise the Principal Amount of your Loan).

      As you have shown in your screenshot, borrowers are required to confirm acceptance of the terms before the Net Disbursement would be sent.

      * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

      In your particular case, your loan breakdown is as follows:

      500 ZMW = Principal Amount --> (This is the total amount of the Loan; it is the amount to *remit*, over time, in flexible installments. It consists of your Net Disbursement which gets *repaid*, plus the Fees which get *paid* --> Loans are not free. Each loan is charged a 5% Service Fee and, now, a new 10% Credit-Risk Fee; and other fees may be charged, as well, if it is a very early loan on the borrower's account.)

      - 25 ZMW = 5% Service Fee --> (a non-refundable 5% Service Fee is charged on each Zidisha loan) --> (this fee is for Zidisha's operating expenses; it is the only fee that Zidisha keeps for itself, in order to be able to run the platform) --> (please read more about this at the post in the first link referenced below)

      - 50 ZMW = 10% Credit-Risk Fee --> (a new, non-refundable 10% Credit-Risk Fee now also is charged on each Zidisha loan) --> (please read the information at the links provided in this post to understand that the purpose of this fee is to benefit borrowers and to learn how it is used to ensure that that occurs) --> (please see the UPDATE below)

      - 95 ZMW = Membership Registration Fee --> (a non-refundable, one-time fee, which entitles the borrower to Zidisha loans at 0% interest rate, for as long as the borrower adheres to Zidisha's terms of service) --> (please read the information at the links provided in this post to understand that the purpose of this fee is to benefit borrowers and to learn how it is used to ensure that that occurs)

      - 320 ZMW = Loan-Loss Reserve Fund deposit Fee --> (now called the "Members Loan Fund deposit Fee") --> (an optional deposit fee that the borrower can elect in exchange for a higher credit limit; it is refundable anytime the borrower no longer owes anything on his/her Zidisha account; however, if refunded, the borrower's credit limit returns to the lower amount; therefore, it is better to keep the deposit in the Members Loan Fund [a/k/a the MLF], if at all possible, to be able still to qualify for the higher credit limit) --> (please read the information at the links provided in this post to understand that the purpose of this fee is to benefit borrowers and to learn how it is used to ensure that that occurs)

      = 10 ZMW = Net Disbursement --> (amount sent to your MTN mobile-money wallet)

      * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

      25 ZMW --> (5% Service Fee) --> (to be *paid*/*remitted*)

      + 50 ZMW --> (10% Credit-Risk Fee) --> (to be *paid*/*remitted*)

      + 95 ZMW --> (Membership Registration Fee) --> (to be *paid*/*remitted*)

      + 320 ZMW --> (MLF Deposit Fee) --> (to be *paid*/*remitted*)

      + 10 ZMW --> (Net Disbursement) --> (to be *repaid*/*remitted*)

      = 500 ZMW --> (Principal Amount) --> (the total amount of the Loan, which is the total to be *remitted*, over time, in flexible installments - in other words, regular remittances must be made; however, the amount of each installment can be adjusted, up or down, by the borrower, as the borrower wants or needs)

      * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

      Please read: goyimei.info/forum-threa... (thread 1295, comment 4428
      Please also read: goyimei.info/forum-threa... (thread 1310, comment 4489)
      And: goyimei.info/forum-threa... (our Director's post at the top of this thread)

      The posts at the above-referenced links are long; however, if you carefully read all of the information there, you will have a much better understanding about how Zidisha currently works.

      * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

      That said, it seems there was a technical glitch affecting the screen you referenced above, as it failed to show the 5% Service Fee (25 ZMW), which you were charged for your first Zidisha loan (as mentioned previously, a 5% Service Fee is charged on *each* Zidisha loan). I see that a 5% Service Fee was mentioned, but the amount of it was not displayed.

      Anytime something doesn't add up, please send in a Support Ticket. Thank you.

      * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

      UPDATE:

      I looked you up in the Support-Ticket system and I found that on March 9th, you wrote in, on Support Ticket #13402, and you stated: "I received only 10zmw but I agreed to receive 60zmw and pay back 500zmw".

      I see that the 10% Credit-Risk Fee previously was not displayed either, that that error on your account was solved by our Technical Team, and that you received a reply on March 13th from Alíz on the team for Zambia.

      * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

      The breakdown of your first Zidisha loan now is shown completely accurately, both in your account and above.

      * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

      --> Subsequent loans, of course, would be much less costly.

      If a refund of the MLF Deposit Fee is not requested later on (i.e., when there is no balance due on the account), and if a new MLF Deposit Fee is not elected to be paid on a future loan (after having previously received a refund of that fee), then future loans would be charged only the 5% Service Fee (as always has been the case) and, now, also the 10% Credit-Risk Fee.

      * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

      If you did not understand about the fees and wish to cancel the obligation (which you can do if you have not yet sent in any installments, or if you have sent in only the amount of your Net Disbursement), then in order to avoid continuing to receive automated reminders of installments due, you would need to do both of the following two steps, in exactly the order described:

      1.) Return the Net Disbursement (if you have not already done so),

      and

      2.) *After* you see the Net Disbursement credited to your account,
      click on the "Cancel Loan" button on your Dashboard.

      If you fail to follow through and do the second step, then automated reminders would continue to go out to you, about the installments due for the fees. If you were to fail to pay, then you would become a defaulter and could suffer all of the consequences of that, both on and off of the Zidisha platform. Therefore, it is very important to follow the directions exactly.

      * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

    • Volunteer Mentor
      Fitri Fauziyah
      Kota Surabaya, Indonesia

      Mar 21, 2018

      I see, Thanks Auntie Laurie, for another detail information, and extra information about credit risk that it is not refundable like I have thought before. :-)
      Have fun with your time away. ;-)

      Translated by Google     Show original

      I see, Thanks Auntie Laurie, for another detail information, and extra information about credit risk that it is not refundable like I have thought before. :-)
      Have fun with your time away. ;-)


      Laurie and Samwel Nyangi like this.
      • Country Liaison
        Laurie
        United States

        Mar 21, 2018

        I wish it were fun, Fitri. It is mainly because of work of a different kind. I would rather be helping Zidisha borrowers. ;-)

        You're welcome for the detailed reply.
        I thought it might help others, too. :-)


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

        Mar 21, 2018

        I see, then Good luck to survive with it. ;-)
        Just focus with it so you can coming back here sooner. ;-)

        Translated by Google     Show original

        I see, then Good luck to survive with it. ;-)
        Just focus with it so you can coming back here sooner. ;-)


        Laurie likes this.
        • Country Liaison
          Laurie
          United States

          Mar 21, 2018

          Well, other days I have 99% stayed on those other tasks (even yesterday, too, except for last night). However, today I did not. Mea culpa. ;-)


          Fitri Fauziyah likes this.

  • Isaac Asare Boahen
    Abetifi Kwahu, Ghana

    Mar 9, 2018

    We thank you for the continual building of confidence and hope for borrowers. We pray for your support to grow our businesses. Thank you team zidisha


    Laurie likes this.

  • Mutua Maundu
    Nairobi, Kenya

    Mar 9, 2018

    Waaoh!!!What an amazing idea.At long last ,a long waited innovation has been put in place.This is a big joy to all of us borrowers.ASANTE (Thank you) madam director and the team.God bless you all.



  • Volunteer Mentor
    George Kiio
    Muthwani, Kenya

    Mar 9, 2018

    Thank you madam,
    This means the total cost of a loan is 15%?. This is still the same rate we get microfinance loans here in Kenya especially mobile money loans from the likes of Tala, Branch, Saida,Haraka,Okolea etc

    • Volunteer Mentor
      Christian Golo
      Accra, Ghana

      Mar 10, 2018

      Hello George,
      Good comparison though but bear in mind that mobile money loans of 15% per annum (pa) is not the same as Zidisha loan of 15% flat with adjustable repayment plan allowed.


      Laurie likes this.
    • Country Liaison
      Laurie
      United States

      Mar 16, 2018

      You're correct, Christian. Although the higher fees distress me; even so, it still is a better deal than banks, which typically charge fees *and* high interest rates... *and* which also do not offer the flexibility of adjusting installment amounts. Zidisha still is better.

      I and many others miss the way it was here in 2015 and even into part of 2016, but as Julia mentioned, things are different here now because of the number of borrowers applying, which is outpacing lenders' ability to fund loans quickly or sometimes at all.

      It would help very much if all borrowers would honor their obligation to lenders and to Zidisha. The platform makes it as easy as possible to do that (with 0% interest rate, and flexible installments). Anything within Zidisha's guidelines that VMs can do to help ensure that "mentees" live up to their obligations would help a lot. Thank you for all of your efforts! :-)

      • Hadi Riyana
        Bekasi, Indonesia

        Mar 18, 2018

        I"m sorry before Laurie ... I just want to suggest it. I think the cost of risk if it can be made 5% as well. So a draw and I think it"s fairer for us, especially me who is pioneering the business ... why I prefer zidisha from the bank because I hope zidisha can be an alternative loan without interest ... sorry if I am not polite ... thank you

        Translated by Google     Show original

        Mohon maaf sebelumnya Laurie... saya cuma mau usul saja.menurut saya biaya resikonya kalau bisa di buat 5% juga. Jadi imbang dan saya rasa itu lebih adil buat kami, terutama saya yang sedang merintis usaha... kenapa saya lebih memilih zidisha dari pada bank karena saya berharap zidisha bisa menjadi alternatif pinjaman tanpa bunga... mohon maaf jika saya tidak sopan... terimakasih


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        • Country Liaison
          Laurie
          United States

          Mar 20, 2018

          Hello, Hadi.

          I did not consider your concern impolite. However, your concern would need to be addressed to Julia, our Director. The reason is because, just like you, all that we on staff can do is suggest ideas, too.

          Our Director considers everyone's feedback, and then it is she alone who makes the policy decisions for the platform.

          Like you, on top of the required and reasonable 5% Service Fee, I consider the now additionally required 10% credit-risk fee to be too high. However, on the other hand, Julia has explained why she has implemented it, and I can understand that, and I'm sure you can, too. Even if some here seem not to mind that it has been implemented, I'm sure that nobody likes the fact that it *has had to be* implemented.

          At least the situation still is better than the situation would be if the loans were through a bank, though, because banks do not give you any flexibility with your installment amounts.

          Please note: I am mostly away for the next several weeks, so if you reply again to me here, I probably won't see it for a long time.

          Best wishes.


          Fitri Fauziyah and Julie like this.
    • Country Liaison
      Laurie
      United States

      Mar 21, 2018

      Here's an example of a first Zidisha loan, with the current breakdown of all fees charged on that particular loan: goyimei.info/forum-threa... (this thread, comment 6295)

      --> Subsequent loans, of course, would be much less costly.

      If a refund of the MLF Deposit Fee is not requested later on (i.e., when there is no balance due on the account), and if a new MLF Deposit Fee is not elected to be paid on a future loan (after having previously received a refund of that fee), then future loans would be charged only the 5% Service Fee (as always has been the case) and, now, also the 10% Credit-Risk Fee.


      Fitri Fauziyah likes this.
    • Country Liaison
      Laurie
      United States

      Mar 21, 2018

      Last night and today, I spent a lot longer than intended on some Zidisha things, so I'll extend my planned time away--(mostly away)--by a couple of additional days. ;-)


      Fitri Fauziyah and Abdul Aziz like this.

  • Volunteer Mentor
    Jones Mwang'ombe
    Mtwapa, Kenya

    Mar 10, 2018

    Thanks and congrats Madam Director and team for coming up with this great initiative. It'll automatically go a long way in speeding up and maximizing the number of loans fully funded. Kudos for this and be blessed.



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