Forum > Lender Questions > MLF payment to increase a borrowers credit limit
I see a lot of comments of borrowers who are complaining that they haven’t received the full requested loan amount. In all cases they have chosen to increase their credit limit by doing a MLF payment and they clearly didn’t understand or read that they are receiving less money.
(Below are just my thoughts as a lender)
Wouldn’t it be a better idea to remove the MLF payment from the new loan request and instead move it to another place where a borrower can do a manual payment into the MLF.
A borrower has had a loan of 100$. He was able to repay it on time and make a profit of 75$. He used 50$ for living expenses and has saved 25$.
He then has 2 options:
- Ask a new loan with a naturally grown credit limit of 120$.
- Do a manual payment into the MLF of 25$ To increase his credit limit with 25$.
And he can immediately ask a new loan of 145$. 100 + 20% + 25$ (MLF amount)
This has some benefits:
- This way a lender never has to deal with those loans with a MLF payment. So it reduces the risk for a lender.
- Zidisha also stimulates that a borrower needs to save some money during his previous loan to do the MLF payment.
- The new loan request process is simplified. So no more mistakes by borrowers who don’t understand that a big part of their new loan is put into the MLF fund.
- A borrower can always use the full amount of the loan he gets to generate income.
- A borrower can only increase his credit limit with money he already earned instead of with money he is thinking he is going to earn.
- A borrower can use his MLF fund (if money is available) to repay his loan if he is experiencing difficulty. (This lowers his next credit limit).
Today there were 10 new borrowers who where complaining on their comment page:
- 2 didn’t understand that they had to pay a lifetime membership fee.
- 8 increased their credit limit by doing a MLF payment and they didn’t understand why they received so little on their bank account.
I have provided all of them with an an explanation and with advice to read the borrower FAQ and contact support.
The comments they give are not nice to read for lenders. Like “ I am not going to pay”.
I also expect that most of them will contact support to get a refund. So that’s a lot of work for Volunteers as well.
That’s why in my eyes it’s a better idea to remove it from the loan request fase and move it to another place where the borrower intentionally can put money into the MLF to increase his credit limit. Or if this isn’t an option then it might be an option to let the borrowers fill in an number field with the amount he is going to receive.
That's the point I have always supported. I believe that our Director will consider establishing MFL on an independent section so that MFL becomes solely the option of those who willingly and understandably want to raise their credit limit. Thanks for your comprehensive, timely and supportive contributions on this platform. Best Regards.
I hope you won't mind I share the information about the MLF information from the old forum. Actually Laurie is the one who make this list.
Translated by Google
Pardon the duplicate posts and the typos over in the old Forum... ever since sometime in June 2016, much of the functionality over there unfortunately stopped working. The ability to edit posts, delete posts, and do other things that most of us used to be able to do over there, disappeared. The old Forum is hosted on a third-party platform (Xenforo) and despite efforts by our Director (and by our former Operations Coordinator, Alejandra) to get those issues repaired, Alejandra mentioned to me that they never were responsive. That's one of the reasons our Director created this new in-house Forum! Now, when a technical problem occurs in the Forum, our Technical Team (Julia and Rodrigo) would be able to repair it. :-)
Lenders can report technical bugs affecting the Forum via email to "[email protected]".
Borrowers can report technical issues affecting the Forum via a Support Ticket from within their Zidisha account.
www.zidisha.org/forum-threa... (thread 1310, comment 4489)
www.zidisha.org/forum-threa... (thread 1295, comment 4428)
Dear Fitri Fauziyah Machmub, I don't see Laurie in here any more.I miss her very much.any news about her?
Well, Zidisha has many tens of thousands of borrowers (actually, close to two-hundred thousand borrowers) and usually fewer than fifty on the entire Zidisha staff. Everyone except for two (our Director and our CTO) are volunteers and most don't work here every day. Also, most work for Zidisha only part-time hours on the days that they do work here. So, even that number means we're usually short-staffed. Since about September 2017, we've had only about thirty-five on staff; and since January 2018, we now have only about twenty-five. You can read more about that here: www.zidisha.org/forum-threa...
So, those few of us who are available to work, stay *very* busy behind the scenes.
We usually end our day (or night) quite exhausted!
You all are missed, too! A person can do only so much, though... I hope you can forgive me and others who also are not in the Forum often anymore and who do more behind-the-scenes work on the platform these days. Speaking of which, I have to go now! :)
I hope you are well!
Hi Laurie, I think Joost has a very pertinent issue regarding MFL. I also raised the same issue on this forum. I concur with Joost that this MFL should be the obligation of the borrower since its him/her who intends to increase the credit limit, of course based on ones financial need at any particular time. I suggest that your panel effect a policy change to that effect.
Hi, Martin. The MLF *is* the obligation of the borrower.
Please see: www.zidisha.org/forum-threa... (thread 1310, comment 4489)
Also, we don't have a panel. We all are members of the Zidisha community, whether staff members and/or lenders, or whether borrowers, who make suggestions individually (and sometimes others support our individual suggestions with "Likes" and/or comments, whether in the Forum and/or via other means of communication). All policy-change decisions are made by our Director.
Please see: www.zidisha.org/forum-threa... (thread 1295, comment 4475)
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