Loan size increase change for loans under $200

Discussion in 'Announcements' started by Julia Kurnia, Oct 5, 2014.

  1. Julia Kurnia

    Julia Kurnia Director, Zidisha Zidisha Staff

    Today we made two modifications to the credit limit for loans under $200:
    • The base loan size increase rate for loans of less than $200 is reduced from 300% before, to 200% now. (For example, upon successfully repaying a $100 loan, the base credit limit will now increase to $200 rather than $300.)
    • The maximum loan amount for invited members is reduced from $150 before, to $100 now.
    All other credit limit parameters, including the standard 150% increase rate for loans over $200, remain unchanged.

    The purposes of these modifications are:
    • To limit credit risk for our lenders
    • To better prevent over-indebtedness for our borrowers
    • To improve our borrowers' chances of having their applications fully funded
    We may make further adjustments of the credit limit parameters in order to optimize funding and repayment rates in our community. That said, we will continue to uphold the principle that all borrowers who repay loans on time will be able to raise a new loan at least as large as the ones they have repaid (and if the on-time repayment score is high enough, the new loan limit will normally be higher).

    I'd be happy to respond to questions here.
     
  2. Shehi

    Shehi Gold Member Volunteer Mentor

    Hi Julia,

    Thank you for the fresh look of 'new Zidisha' ! I love the red count on 'Discussion' more but the red progress bar on fundraising loans alot less!
    I also checked my 'Current Credit' (out of curiosity) today and noticed that it is less ( in amount value) than my current repaying loan.
    Therefore, I wondered what will eventually happen when I apply for my next loan. How will it work out between the two differing amounts? Thank you.
     
  3. Julia Kurnia

    Julia Kurnia Director, Zidisha Zidisha Staff

    Dear Mr. Shehi,

    Thanks for this rapid feedback. We'll investigate your loan size progression as soon as we can. The next loan size ought to be at least as much as your currently repaying loan, though it will not increase unless the current loan has been held for the minimum time necessary for a credit limit increase.
     
    Shehi likes this.
  4. Shehi

    Shehi Gold Member Volunteer Mentor

    My 'Current Credit' is looking good again ( everyone should avoid using that 3-letter word, this early):D:D. Thank you! :cool:
     
  5. Julia Kurnia

    Julia Kurnia Director, Zidisha Zidisha Staff

    Wonderful, thank you!
     
    Shehi likes this.
  6. Shehi

    Shehi Gold Member Volunteer Mentor

    Julia,
    My mentee Peris 's loan https://www.zidisha.org/loan/8167 is still indicated as 91% Repaid despite her clearing her loan long time ago!
    Consequently, she is unable to post her next loan.

    Thank you.

    EDIT: Now corrected. Thanks.
     
    Last edited: Mar 9, 2015

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