Madison, United States
Feb 1, 2020
Why does Zidisha not show how much of the money that i originally deposited is still in circulation? Or, they could show how much has been lost. On the homepage, I see only total money deposited and value of all the loans that I've funded. But, I have no way of seeing how much of my money is currently out in loans and how much has been written off.
Gifty Selasi Attipoe likes this.
Feb 6, 2020
I miss that info too. I maintain an Excel worksheet to keep track of loans. From time to time, I go over derelict loans and if there is no repayment at all, poor communication etc, choose 'early repayment'. Drain on my time but I think its worth it.
Zidisha charges at least 25% 'credit risk payment' for each loan. Such 'early repayments' come from that fund. Since I put such money right back into loans for other worthy borrowers, I think this is good use of the high credit risk payment that EVERY borrower pays since rather than let the money languish, it gives a chance to other borrowers.
BTW, there is a limit for how much money you can have reimbursed via 'Advanced repayment'. Last I checked it was $1000. [EDIT on 7th Feb - this limit is for 'Withdrawal' account. There is no such limit for 'Impact investment' type account]
Would like to hear your thoughts about this. And other lenders too!
Alexandre Genereux likes this.
Apr 23, 2020
I thought the charge was maximum of 25% credit risk payment. Could you clarify? Thank you.
Apr 23, 2020
The current risk fee rate ranges from 5% to 15%, depending on the repayment record of the applicant and the length of time the loan will be held. (Edited 2 June 2020)
Christian Golo and Olawale Noble Liasu like this.
Apr 24, 2020
Hello Director Julia,
Thank you very much for indicating the range of the risk fee between 5% to 25%) but I want to know whether the service fee has also been increased from the 5% and to how much? (edited 7 June 2020)
Samwel Nyangi likes this.
Apr 25, 2020
The Credit risk fee has certainly reduced - the max I see for the handful loans available right now is about 18%. However, service fee has increased to 10%. Looks like at some point during last 30 days, service fee was increased from 5% to 10%. Was there any notification about this that I missed?
So it was 5% (fixed)+25% (average number, it is variable) earlier and now its 10% (fixed)+ 15% (average number, it is variable). If you look at just Credit risk fee it seems substantial improvement but coupled with increased fixed fee, it is smaller improvement.
If only there was an easy, automated way to accomplish the goal - "reduce the burden on the borrowers who do repay loans fully because there are borrowers who do not". Maybe Zidisha should look into one more type of loan - credit risk fee is tracked at borrower level and is accumulated over loans such that with each successive loan, the credit risk fee required - to cover any unpaid amount - gets reduced.
Jan de Wit, Fitri Fauziyah, Christian Golo, Joost, Olawale Noble Liasu, Eric Agyei Tuffuor , Vanessa Musonda, Okwukwe Kam, Wilberforce Okelo, Alfred Koosom and Benjamin Kwabena Agyei like this.
Jun 3, 2020
"Maybe Zidisha should look into one more type of loan - credit risk fee is tracked at borrower level and is accumulated over loans such that with each successive loan, the credit risk fee required - to cover any unpaid amount - gets reduced."
I think the natural and perhaps unavoidable issue is that the platform naturally tends to encourage each successive loan to be larger and larger than the last one (because people start with very low loans borrowing $10 to build up their name, etc) - and just because somebody wasn't a credit risk at $50 doesn't mean they aren't more of a risk (rather than less) when borrowing $500.
I suppose you could enforce the system that you pay a lower-risk rate if your current application is for a loan smaller than your largest repaid loan in the past 6 months, etc.
Wilberforce Okelo likes this.
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