Nancy Kageni Kaaria
Sep 15, 2019
Is credit risk fund refunded after complete loan payment. Is a one time payment or its every time I borrow? I just wanted to know before my loan is funded because 5 % and credit risk of Kshs 34,000 non refundable no fair at all. Borrowing Kshs 114,000 and receiving 74,000 and repay 114,000 its taking out of business. Thank you.
Sep 16, 2019
It can be better you claim it after completing your loan payment, but you can still cancel the loan and claim your money back, it's not one time payment it's every time you borrow, but remember only the loans b4 17 December are being funded.
Dagoretti Ndonyo, Kenya
Sep 25, 2019
how do you claim for the risk fund?
Nov 6, 2019
After you don't owe anything on your account anymore, and as long as you haven't created a new loan request, then you would be able to request a refund from the HELP link in your account, where, at that time, you would see a support-ticket subject option available for doing so.
For others reading, and as Careen mentioned, too, that only is possible regarding loans taken out prior to the 17th of December 2018.
Dorothy Chepkemoi Maritim
Sep 17, 2019
The last time I checked credit risk was no longer refundable so so your calculations well
Oct 16, 2019
i sent a mail about the refund of risk fund and i have never got the message, i thought the risk fund i had paid would cover part of the risk fund of this other loan but i was perplexed to find that the risk fund of the other loan is calculated differently so i wonder what happened to amount i had payed.
Oct 23, 2019
The Credit-Risk Fee is sort of like an "insurance premium". It goes into a pool of funds set aside by Zidisha's Staff (a/k/a Team: www.zidisha.org/team) to help reimburse lenders when borrowers pay very late or default.
That fee didn't used to exist. In the past the terms were really great (low fees, flexible payment options, no collateral, etc.); however, even then, too many borrowers failed to live up to the obligation they entered into, so the Director took the decision to create this fee (which used to be called the "Members Loan Fund" fee; and, before that, the "Loan-Loss Reserve Fee").
For a while, that fee used to be refundable, but since the situation obviously hasn't improved, the Director decided to make the fee non-refundable, starting on the 17th of December, 2018.
The money paid by a borrower into the fund is not just in case that borrower defaults. It's in case any Zidisha borrower defaults, which is much like any other type of insurance.
For example, for automobile insurance, we pay in our premium, and that money goes into a pool of funds for the company to pay claims for damage to any of their policyholders caused by accidents, natural disasters, etc. We don't get a refund of our premium paid at the end of the year if we, ourselves, didn't have an accident that year. The "Credit-Risk Fee" here works similarly.
It's my understanding that it's a variable fee, calculated automatically by an algorithm programmed into the system by the Staff. I don't know all of the factors that go into the calculation, but that's why that fee was a different amount later than it was before.
It's unfortunate that the fee has to exist at all, and that it's high, but borrowers have caused the situation, and borrowers can solve it, too. The solution is for all borrowers collectively never to default and always to adjust their payments downward whenever they may need to, and always to pay on time (which at Zidisha means exactly on the due date or within the ten-day grace period after the due date, not early and not late, ideally to keep the on-time repayment rate at 90% or higher).
Whenever an installment is due, it's always better to pay a smaller amount than no amount at all. That would keep more money available in lenders' accounts, which would mean more borrowers' loan proposals would make it to "Browse Projects" (also determined by algorithms) and it would mean less need for the pool of "insurance" funds, so then that fee could be lowered (or, ideally, eliminated, but I doubt that would be able to occur, although I hope someday it would).
I hope this helps you to understand better how Zidisha currently operates.
Oct 26, 2019
it does not really help since for example am charged 33% on a aloan am taking now translating to $ 500 a third of the amount am to receive.
amd that means that the genuine borrowers have been trapped into either paying a high interest rate than our locals banks or maybe repaying for borrowers who are not repaying on time and later when they repay we are not refunded the figure we were deducted .
imagine the figure i have been deducted so far is about the equal am borrowing right now and the next time i will be borrowing it will be even more than what am borrowing.
its so so much unfair to the faithfull lenders and the deductions are barring us from growing our business further.
i wish the credit risk percentage deduction could be an its posible to be reviewed since the system is human designed and can be reprogrammed again.
Purity Gacheru likes this.
Oct 26, 2019
I do understand all that. I was merely explaining how it is here now, for Pius Arara and for anyone else who may not know. And I agree with you, Dancan, but the Director is who makes, reviews, and changes the policies, so it won't help you to appeal to me or to anyone else here, only to her. She will see your message here.
Ningo- Ahwiam, Ghana
Nov 1, 2019
Please kindly stop sending me messages that I should pay for my past due loan.
The terms and conditions regarding refund of credit risks as stipulated to me was that credit risks will be refunded upon clearing all outstanding loan, yet I requested for refund severally on this platform, but your team failed to comply to your part of the agreement terms. Hence I decided to take loan and use my credit risks to offset my outstanding payment.
Therefore as much as I'm concerned I don't own zidisha team any money, and if your team want me to pay my loan arrears then they should refund my money and I'll use it to settle the loan for my credit risks is equivalent to the amount I'm left to offset. Otherwise I'm sorry I can't pay since I'm financially handicapped.
Martin, if your loan was taken out on or after the 17th of December 2018, the terms were that the Credit-Risk Fee isn't refundable, same as the terms for everyone else. If you're certain you saw the terms otherwise and have a screenshot to prove that possible technical glitch at the time, then please send the screenshot to the Director via the HELP link in your account, where you may be able to create a support ticket (if not, then you could post the image for her in the "Borrower Questions" section of the Forum).
Btw, this is the Staff, a/k/a the Team: www.zidisha.org/team As you can see, there currently are only two (2) people on the Team, so you likely would need to be patient for a reply.
Nov 3, 2019
How can my credit risk be refunded back
Stanely Njeru likes this.
Nov 4, 2019
Hello Ochieng, refund of risk fees was ceased. Nowadays it is not refunded.
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