Forum > Announcements > Optional MLF payments replaced with credit risk payments
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.
Good work and Thank you Julia
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.
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.
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.
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.
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
I am Zidisha new member and i can't publish my loan. Loan application step 3 isn't working. Please see a screenshot.
Dear Zidisha Team
Still now i can't publish my loan application. Someone on Team can help me?
Hello. Try now. It should be working
it's not working for me. This is zidisha website response on loan application step 3: Whoops, looks like something went wrong.
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.?
Both amount are put into the MLF. More info about this and about refunds is available here.
Asking for a refund doesn’t mean saying goodbye. It means that your next loan credit limit will be lowered.
Please how many times is one asked to pay CRP. Will be on every level of loan?
It's well noted
".... 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?
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....?
The expediting service is optional and it's not refundable.
Translated by Google
Please how many times is CRP. Is it on every loan request? Thank you.
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.
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
This is correct. The announcement of the credit risk payment has been updated. It’s a variable percentage.
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.
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.
I also believed that your MLF contribution may also be a factor in determining or calculating ones credit-risk level
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
Suffering the same problem with me here. yet have been depending only on zidisha since 2013 with 100% constant ontime repayment.
Cliff and Dancan,
Please see my reply, here:
Thank still Mrs. Julia for explanation. Hopefully Zidisha can help others to improve the economic development of society.
Terima masih Mrs Julia atas penjelasannya. Semoga Zidisha bisa membantu sesama untuk meningkatkan perkembangan ekonomi masyarakat.
Join us at
© 2009 - 2018 Zidisha, Inc. • Zidisha is a 501(c)(3) nonprofit • Terms and Privacy • Contact