Jun 27, 2021
Starting today, loans no longer carry any risk fees. The only cost to entrepreneurs for raising a loan is the 5% service fee to cover the costs of transferring funds.
To help ensure the sustainability of lending funds in the absence of risk fees, once loans are repaid borrowers will have the option to make a Pay It Forward deposit in an amount of their choosing (up to a maximum of 25% of the loan amount). Similarly to Pay It Forward projects, Zidisha will match the deposit amount such that the credit limit increases by double the amount the borrower deposits. Borrowers may choose to skip the optional extra deposit and keep their credit limit the same if they prefer. If they choose to make the deposit, they may use it to fund other projects on the platform just as with Pay It Forward projects.
This change is based on the feedback we have received on the new Pay It Forward program. Borrowers told us that they welcomed the lack of risk fees in Pay It Forward projects, and liked having the flexibility to deposit an extra amount or not at the end of the project depending on financial circumstances. They also enjoyed the chance to join lenders in funding projects for other entrepreneurs.
Lenders also welcomed the lower cost and friendlier repayment terms of the Pay It Forward projects, but many of them preferred to receive repayments back in their own accounts rather than having entrepreneurs allocate the repayments to new projects for them.
The new loan structure is designed to include what members most appreciate about Pay It Forward projects, while still allowing lending accounts to be credited for repayments as before.
For those who prefer entrepreneurs to relend the full project amount, we are also continuing to offer Pay It Forward projects alongside loans. Borrowers may choose either option when applying for a new loan, however credit limits and fees are now the same for new loans as for Pay It Forward projects. There is no longer any financial advantage to choosing one over the other.
For borrowers who currently have an outstanding loan, the credit limit that has been earned under the old credit limit policy applies until you raise your next loan or Pay It Forward project. The new credit limit system applies to loans and projects raised after that.
We are also taking this opportunity to consolidate the borrower invite options into one type in order to make the system easier to understand. For the time being, a single borrower invite option replaces referrals, Pay It Forward-specific invites and loan guarantees. (Previously issued guarantees and invites will still be honored, but no new ones are being issued for now.) We will continue to adjust the invite program policies in response to repayment performance and availability of lending capital.
Thanks to all of our members for helping us offer innovative business growth capital opportunities to deserving people worldwide.
mtnsailor, Prince Arhin, Christian Golo, Benjamin Kwabena Agyei, Lydia Addo, Ivy Kumesi, Catherine Rimui, Richard Frempong, Juliet Oforiwaa, Ababio Seth, Tabi Joseph, Felicia Korang, Bonsu Abigail, Yvonne Mensah and Anthony Maina like this.
Jun 29, 2021
Well appreciated team Zidisha.
Jun 29, 2021
The best News ever thank you Julia
Anthony Maina likes this.
Aug 28, 2021
God bless you Madam Julia for you are doing for us
Jun 28, 2021
Thank you for being a listening leader as well.
Jun 28, 2021
I am very happy hearing this.
Thank you very much Madam Julia and team Zidisha.
However I am looking forward to the day when after repaying your traditional loan or pay it forward fund, your credit limit would not increase by 50% the amount you deposit, thus from 0 to 25% , instead, you will have 50% to 100% increment to the total amount you have deposited into either pay it forward or traditional zidisha account.
Simply put, if I took $100.00 , repaid the $100.00 and deposit additional 25% thus $25.00 , my credit limit increment should not be subjected to the amount I deposit (25%), instead , 50% to 100% the total amount recieved previously.
So instead of receiving $150.00 on your next project according to our current system, members will instead receive $200.00 thus 100% of previous loan.
This will motivate members to give back to the community with the mindset that if I repay $125.00 (previous loan and additional 25%) to fund other projects, I will receive $200.00, a boost for giving back rather than $150.00.
My humble opinion that I wish management of zidisha will consider in days to come soon.
Lydia Addo, Juliet Oforiwaa and Felicia Korang like this.
Jun 28, 2021
We are always striving to provide as much funding as we responsibly can. However, we have found with experience that many loans default when the credit limit increases too quickly. In order to keep loans affordable for everyone and preserve the value of the lending funds, we need to avoid sudden large increases in credit limits.
Lydia Addo, Tabi Joseph and Shellemiah Ogollah like this.
Jun 29, 2021
Dear madam Julia kurnia, I have noticed a sadden change in my credit limit.it has dropped and the reason being my guarantor is defaulting his current loan.From what I know my guarantor is dead and no one is looking after his account because maybe he never shared any information about his zidisha account.This has affected badly and there's nothing I can do.please I really need your help,last time I paid 8000ZMW and my credit limit dropped to k1400 can you please restore my account account my situation is not good for now
Jun 29, 2021
Hi Muyunda, guarantor repayment status no longer has any effect on the guaranteed member's credit limit. This provision was removed when we made the changes announced above.
Thank you very much for your response
Bogoso Western Region, Ghana
Jul 31, 2021
Please madam if the guarantor program is no longer affect the guarantor how come my repayment has been used to credited my guarantee member and please I have completed my three months also
(Comment deleted by author)
Sep 4, 2021
When it comes to looking at your argument as a motivation to give back to the community, indeed you are very right as I also support that notion and very willing to go to that extent personally.
But all said and done, probably Zidisha team could be having a formula / reason to cap the percentage at 25% which may not be known to us (me).
But it is a good food for thought for Madam Julia & Zidisha team.
Jun 28, 2021
Some of us need some amount to put into our business that will help the business yield very well,
These small teat loans and the pace with which they increase will cause our businesses to crawl.
Kudos to the new changes, it's very neccessary.
Jul 28, 2021
A little late (busy time) but just wanted to thank Julia and everyone working on this - I'm very glad to see it, as a small-time lender - Godwilling it allows greater flexibility for borrowers to take loans with reduced risk to themselves without increasing the risk to Zidisha.
Christian Golo and Grace Boakye like this.
Jul 29, 2021
Madam Julia and team Zidisha,you guys are doing a great job!we are happy
Jan 14, 2022
I love what I hear from zidisha,,though havent yet got a loan from zidisha
© 2009 - 2022 Zidisha, Inc. • Terms and Privacy • Contact
Not a member?
Already a member?