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1. What percentage of your loans end up being delinquent for each of the countries you are in? 2. How do you handle defaults? Your FAQ mentions: If you miss
by ayewo 5y ago
1. What percentage of your loans end up being delinquent for each of the countries you are in?
2. How do you handle defaults?
Your FAQ mentions:
If you miss a scheduled payment, Zidisha will issue one courtesy reminder by text message to your mobile phone. If the payment still is not made, Zidisha will request mediation from members of your community. If mediation is not effective, Zidisha may determine that the loan is defaulted. The consequences of defaulting on a Zidisha loan include disqualification from funding any new loans in the future, reporting of the default to your national credit bureau, and legal prosecution resulting in confiscation of property, fines and other legal penalties.
But then I noticed elsewhere on the site, mentions of a “ Credit risk payment: Goes into a fund that compensates lenders for loan defaults”.
- jkurnia 5y agoIn the past, default rates have usually fluctuated between 15% and 25%. No country has consistently been higher or lower than the population as a whole. We handle defaults as described in the FAQ. In addition, the volunteer mentor (experienced borrowers who help vet and orient new members) who was assigned at the time the member joined may call the member to help them establish a payment plan. The credit risk payments were fees intended to offset default losses under the old system (before the pivot to the Pay It Forward system). We do not apply them anymore. Instead, the optional extra payments deposited to the loan fund once projects are repaid are expected to offset default losses.