Forum > Announcements > Optional MLF payments replaced with credit risk payments Forum Guidelines

  • Director
    Julia
    United States

    Apr 4, 2018

    Now that new loans carry required credit risk payments into the Members Loan Fund (goyimei.info/forum-threa...), most new loan applications no longer include an invitation to make an optional payment into the Members Loan Fund in return for higher future credit limits. (The option continues to be in effect for a small number of randomly chosen accounts, for performance monitoring purposes.)

    This does not affect Members Loan Fund payments made in the past, which are still refundable at any time and are still taken into account when determining credit limit increases.

    Membership fees paid by first-time borrowers, risk fees and expediting fees are all credited in full to the Members Loan Fund, rather than to Zidisha's operating costs. On-time repayment performance has steadily improved over the past year, and we expect inflows from these sources to be sufficient to offset loans in arrears without needing additional Members Loan Fund payments.

    This change reflects our commitment to keeping costs to borrowers low, while protecting the value of lending funds over the long term. As with all new policies, we will continue to monitor performance and make further adjustments as necessary to ensure we achieve this purpose.

    • Volunteer Mentor
      Anthony Ludeki
      Kabiria, Kenya

      Apr 5, 2018

      Good work and Thank you Julia


    • Joshi
      United States

      Apr 5, 2018

      Another piece of great news! I often see loan applications where the borrower is taking just second or third loan and has chosen to make very large contribution to MLF. e.g. something like $480 to MLF for a $600 loan which leaves very small amount that borrower will actually get after the other fees. Makes me wonder if the borrower really understands implications of this. Just NOT showing that option makes sense.

      I hope all borrowers will note the third paragraph - that all fees go to MLF and not operating costs. Actions speak louder than words, right? If this does not convince someone (especially the borrowers who seem dismayed with Zidisha) about solid commitment that Zidisha is making to borrowers, then I don't know what will.

      - Joshi

    • Volunteer Mentor
      Dancan Mongare
      Nakuru, Kenya

      Jun 4, 2018

      I like the fact that zidisha is looking for all means to improve its stability and existance in order to server us borrowers and satsfy safty to its lenders too.
      Much Thanks Director Julia for your efforts. But please review on the 20% credit risk payment its so high.


    • Leonard Ngeno
      Nakuru, Kenya

      Jun 6, 2018

      Hallo, kindly I have a thing that I do not understand. Is it after completing each loan repayment that the credit risk amount refunded and if so, how long does it take for the refund.



  • Isaac Asare Boahen
    Abetifi Kwahu, Ghana

    Apr 4, 2018

    Thank you Julia, we are just hoping there will be more lendering funds so that things return to normal as before. Keep up the good work.



  • Volunteer Mentor
    Ahmed Bishir
    Techiman, Ghana

    Apr 4, 2018

    Thanks very much for your great effort in making zidisha a dependable organization for us all.It is my prayer that there will be more lending capital to fund all loans without getting expired.Thanks



  • Rainatou Tiogo
    Hamile, Ghana

    Apr 5, 2018

    Dear Julia.
    I am Zidisha new member and i can't publish my loan. Loan application step 3 isn't working. Please see a screenshot.


    • Rainatou Tiogo
      Hamile, Ghana

      Apr 9, 2018

      Dear Zidisha Team

      Still now i can't publish my loan application. Someone on Team can help me?


      • Volunteer Mentor
        George Kiio
        Muthwani, Kenya

        Apr 12, 2018

        Hello. Try now. It should be working


        • Rainatou Tiogo
          Hamile, Ghana

          Apr 13, 2018

          it's not working for me. This is zidisha website response on loan application step 3: Whoops, looks like something went wrong.



  • Solomon Polley
    Prestea, Ghana

    Apr 5, 2018

    Thank you lady Julia for your continual persuit to help and improve lives. But I'm confused here, because I made a payment of $83 into the MLF for my first loan and I was also deducted $58 as a Credit Risk Payments(CRP) from my current loan into the MLF. So with the refunding, is it with the my current CRP into the MLF or my first time payment into the MLF. And please does asking for any of the refunds means saying goodbye to ZIDISHA.?
    Thank you.


    • Joost
      Noord Brabant, Netherlands

      Apr 6, 2018

      Both amount are put into the MLF. More info about this and about refunds is available here.
      goyimei.info/faq#faq-67

      Asking for a refund doesn’t mean saying goodbye. It means that your next loan credit limit will be lowered.

      • Volunteer Mentor
        Asare Angela
        Dormaa Ahenkro_..., Ghana

        Apr 14, 2018

        Please how many times is one asked to pay CRP. Will be on every level of loan?



  • Asomah Frank
    Adansi Praso, Ghana

    Apr 6, 2018

    It's well noted



  • Daniel Mbugua
    Bamburi, Kenya

    Apr 7, 2018

    ".... On-time repayment performance has steadily improved over the past year, and we expect inflows from these sources to be sufficient to offset loans ....." This is very encouraging but loans are still expiring. When is the situation likely to improve?



  • Solomon Polley
    Prestea, Ghana

    Apr 14, 2018

    Well done lady Julia. ZIDISHA is forever grateful to you. Good to know both the credit risk payments(CRP) and the expedition Fess are going into the MLF. Please is the expedition fee also refundable as the CRP is....?
    Thank you.


    • Volunteer Mentor
      Fitri Fauziyah
      Kota Surabaya, Indonesia

      Apr 15, 2018

      The expediting service is optional and it's not refundable.

      Translated by Google     Show original

      The expediting service is optional and it's not refundable.



  • Volunteer Mentor
    Asare Angela
    Dormaa Ahenkro_..., Ghana

    Apr 14, 2018

    Please how many times is CRP. Is it on every loan request? Thank you.



  • Volunteer Mentor
    Jared Ondieki
    Nyamira, Kenya

    Apr 15, 2018

    I had applied for a loan which was not fully funded and the amount raised i accepted that amount and unfortunately they are cutting 47 % of the amount as credit risk management. I thought it was 10%!!!!!!!!! I dont understand what is happening. How Can I be cut half of the loan seriously? Can Zidisha Team please clarify this.


    • Volunteer Mentor
      Gladys Barasa
      Gilgil,rift Val..., Kenya

      Apr 16, 2018

      Hey Jared,
      Sorry for the problem.I think it's a technical Bug into the system. Kindly create support ticket in the Help page and your problem will be taken care of by the Zidisha staff member.
      Through Julia's recent announcement she said that the charges will be,
      -Service fee is 5% of your loan and Credit Risk Payment at 10% of the loan,total is 15% deduction .Let hope for a quick response from the staff member once you create a ticket and your case will be resolved soon.Thank you


    • Joost
      Noord Brabant, Netherlands

      May 15, 2018

      This is correct. The announcement of the credit risk payment has been updated. It’s a variable percentage.


      Dancan Mongare likes this.
      • Volunteer Mentor
        Dancan Mongare
        Nakuru, Kenya

        Jun 4, 2018

        Am getting this from you. But i would like zidisha to consider individual repayment history before imposing a 20%flat rate credit risk payment to every borrower.


      • Country Liaison
        Laurie
        United States

        Jun 4, 2018

        Dancan, a 20% flat-rate credit-risk payment is *not* charged to every borrower.

        As Joost has shown you above (circled in red), Julia edited her earlier post to state the following:

        "The credit-[risk] payment amount now varies depending on each borrower's repayment history [AND] credit-risk level."

        In other words, the percentage that gets charged for the credit-risk payment varies.

        There is more that goes into the credit-risk level than just the repayment history. The size of the loan requested also is taken into account. I think there may be other factors, too. I'm also fairly sure that an algorithm determines the credit-risk level of each borrower. If you believe there could be a technical bug affecting your account regarding the calculation of your credit-risk level, then please send in a Support Ticket.


        Christian Golo likes this.
        • Volunteer Mentor
          Christian Golo
          Accra, Ghana

          Jun 7, 2018

          I also believed that your MLF contribution may also be a factor in determining or calculating ones credit-risk level



  • Cliff Mumbi
    Lusaka, Zambia

    Jun 3, 2018

    As to me as well credit risk payment is at 23%. I want to why is my credit risk payment is at 23% instead of 10%. And my performance of repaying is 100%
    Why am I given high percentage of credit risk payment please explain this


    Dancan Mongare likes this.
    • Volunteer Mentor
      Dancan Mongare
      Nakuru, Kenya

      Jun 4, 2018

      Suffering the same problem with me here. yet have been depending only on zidisha since 2013 with 100% constant ontime repayment.


    • Country Liaison
      Laurie
      United States

      Jun 4, 2018

      Cliff and Dancan,
      Please see my reply, here:
      goyimei.info/forum-threa...
      [forum-thread/1899#comment-8410]



  • Andhy Soerya
    Batubara, Indonesia

    Jun 6, 2018

    Thank still Mrs. Julia for explanation. Hopefully Zidisha can help others to improve the economic development of society.

    Translated by Google     Show original

    Terima masih Mrs Julia atas penjelasannya. Semoga Zidisha bisa membantu sesama untuk meningkatkan perkembangan ekonomi masyarakat.



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