Apr 1, 2021
Please I need a clarification on how to repay my loan, assuming taken of 10,000.00 Ghana Cedis how much do I make an installment for every week?
Apr 3, 2021
Loans start small, so it would take quite a while before you were able to take a loan for 10,000 Cedis - but theoretically if you took a loan for 10,000 Cedi then you have the ability to CHOOSE how you prefer to repay it.
Some people will pay 1000/month for 12 months
Some people will pay 500/month for 24 months
Some people will pay 500/month for the first 12 months and then 2000/month for the final 3 months
Apr 3, 2021
[2021-04-06: edited to add a little more detail about lending accounts]
[2021-04-08: edited to add a link to an example of losing money due to exchange rates]
GENERAL INFORMATION FOR BORROWERS AND LENDERS:
Re: "...if you took a loan for 10,000 Cedi (and you would need to pay perhaps ~2000 as a fee for the loan, so total to repay is 12,000)..."
No, the Principal Amount of the Loan--(which is the amount to be repaid)--would be for $10,000 (maximum).
What happens is that according to algorithms that the Director programs into the system, the Fees get deducted from the Principal Amount of the Loan. (The Principal Amount of the Loan is the total amount of money that the borrower's individual lender[s] contributed toward fully funding the borrower's loan.)
The fees, of course, are retained by the platform for running its operations as the intermediary between the borrowers and the lenders. (Over the years, the Director unfortunately has found it necessary to raise the number of fees and the overall total amount charged in fees.)
Anyway, then, the *Net* Disbursement is sent to the borrower.
The *Net* Disbursement is equal to the Principal Amount of the Loan
MINUS the Fees that ultimately are the borrower's responsibility.
(The fees are charged by the Zidisha platform, NOT by the individual lender[s]. Lenders here don't make any money, only the platform itself makes money, and it's my understanding that most of the profits get reinvested back into the business. Lenders here, in fact, sometimes lose money: because of international monetary exchange rates that sometimes are not in our favor (www.zidisha.org/forum-threa... [forum-thread/10731]); and also because despite that the Director created the Credit-Risk Fee, actually not enough always is collected for the platform to be able to send reimbursement to lenders for *all* defaults
all of the time.)
Okay, moving on...
Then, over time, in installments, the borrower sends repayments to Zidisha.
But, remember, that money doesn't belong to Zidisha... it belongs to the borrower's individual lender(s) who contributed toward fully funding the loan. So, then, Zidisha sends the repaid money back into the account(s) of the borrower's individual lender(s).
The total amount that the borrower repays, over time, is the Principal Amount of the Loan.
The full "Disbursement" = the Principal Amount of the Loan.
Don't confuse "Disbursement" with *Net* Disbursement.
The latter is what the borrower receives.
The former is what the borrower owes.
In other words:
The Principal Amount of the Loan is equal to the *Net* Disbursement PLUS the Fees
that the lenders extended, via automated deductions, to Zidisha management on the borrower's behalf.
Next, when the borrower's lender receives (or the borrower's lenders receive) his/her/their money back into his/her/their lending account(s), he/she/they can choose to re-lend his/her/their money to new projects; or--if he/she/they chose a "withdrawable" type of lending account when signing up for a lending account here (or if he/she/they converted to a "withdrawable" type of lending account later, as began being permitted a short time after the global pandemic began)--then, he/she/they can choose to withdraw a portion or all of the repayments he/she/they received from the borrower and not to lend out some portion or even any of his/her/their previously lent-out money again.
Lenders decide whether to keep lending, or not, usually based on a borrower's financial integrity, meaning the borrower's having repaid earlier loans in good faith, in as timely a manner as possible, and having kept in good communication with his or her individual lender(s) on his or her borrower-lender Discussion page about the reason(s) for reducing installment payments anytime the borrower finds it necessary to do so (and if the system permits it).
A side note... borrowers, please keep all of the following in mind, too:
Lenders here are very similar to borrowers here, in that we merely create a "lender" account on the platform (through which to lend), just as you merely create a "borrower" account on the platform (through which to borrow).
The Zidisha platform functions as the *intermediary* between the borrowers and the lenders, which it does in exchange for the Fees that the platform charges to borrowers on each loan.
Lenders here don't make any of the rules, and we don't handle anything technical or much of anything administrative. (Although the Director also is a lender, using some of her own household money through her own lending account on the platform, just like any of the rest of us lenders, most lenders *aren't* on the Staff. Therefore, please always use the HELP link in your account, *not* your borrower-lender Discussion page, anytime you have any technical, administrative, or policy-related questions, concerns, or suggestions for the Director.)
Your borrower-lender Discussion page isn't for requesting assistance from the Staff. It's primarily for letting your lender(s) know anytime you need to reduce your installment amount (and why). It's also for communicating with your lender(s) about your project(s) and your life in general (and theirs, too, if they wish to share). And it's additionally a place where Volunteer Mentors can post messages for you and/or for your lender(s). But, as mentioned, it isn't a place for discussing policies, procedures, technical issues, or anything of that nature.
Each Zidisha member--(each borrower *and* each lender)--has a HELP link in his or her account for sending a private support ticket to the Director (and to whomever she currently may have helping her on the paid Staff behind the scenes).
I hope this helps to clear up some of the confusion.
Christian Golo, George Kiio, Olawale Noble Liasu and Ivy Kumesi like this.
Apr 4, 2021
Thank you for the correction, will remove my mistaken explanation.
Olawale Noble Liasu
Apr 3, 2021
Hi Nurudeen, your repayment schedule page on your menu of your account will guide you on how and when to repay.
Apr 2, 2021
You must use the loan to work so you can earn money to repay your loan, at least you must pay 500ghc per week
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