Discussion in 'Borrower Questions' started by ANTHONY GITHAE, Mar 9, 2015.
My loan is approaching expiry date but not yet funded. Kindly What might be the reason?
I am sorry it is taking a while for your loan to be funded. I am sure that is frustrating. Zidisha staff does not have control over the number of lenders actively funding loans at any given time. However, we do have some tips for how to improve your chances at funding. Please log into your Zidisha account and look over the "How to Have Your Loan Featured" link in your account for ideas on how to improve your loan profile. To make changes click on "Edit Profile."
Best wishes with your loan!
my friend's too https://www.zidisha.org/loan/14819.
I wonder why the lenders are no longer asking for interest payment on the loan they fund. Why I am asking such question, under normal procedure loan charge can be split into three components:
1. Compensation for inflation –this is to avoid the money loaned losing its purchasing power caused by inflation ,for instance a lender of a country like Ghana with a high a rate of inflation currently being 16% yearly will not be willing to lend his money though he wants to ;
2. Compensation for default risk –the chance the borrower will not pay back loan (Base on the new policy ,Zidisha is only required $15 from the member to offset the default assuming the borrower takes out $100 and default in his payment can $15 tangibly compensate $100 borrowed ?
3. Compensation for opportunity cost of capital –which is cost of waiting to spend one’s money. Though Zidisha is non-profit making organization ,measly interest to lenders on their money lent will push them to have an incentive to continue lend more money than none ,
I have observed since the change of the new lending policy with zero interest ,10 featured loan applications have a real challenge in raising fund to fund their projects ,there is noticeable slowness in response from the lenders in the process of the fund lending .As this as time goes on, can really discourage some of us as a results of difficulties in raising funds .
I am personally grateful for the continuous sacrificial effort Zidisha team is in providing a platform where we can raise money almost at no cost to fund our various projects so that we can create wealth. However , as a stakeholder I am also concerned for the sustainability and the expansion of this platform to not only serve us but also the generations to come.
I volunteer for Zidisha by helping translate the French loan profiles, mainly from borrowers in Burkina Faso, and just in that country alone I've noticed an increase of loan applications over the past few weeks. Same thing across the system, with 400+ loans being raised currently. It seems this is another reason why many loans are taking a long time to be funded.
I agree the loans this time round are taking a bit to attract any funding and if the reason is because the number of entrepreneurs and small businesses is going up the better. The number of lenders will also go up too I believe. The great work lenders are doing via Zidisha is out of this world and it can only attract many interested lenders, awesome people who've shown us (yes! I'm also not funded with 15 hrs to go- https://www.zidisha.org/loan/14816) no matter what's happening there is hope for human kind. I love it when I read how the service is transforming lives and the fact that someone has invested his/her money is very encouraging. Godly.
The recent change to 0% interest for lenders is a cause of some concern to me as well, but it is still quite recent, (I don't think it's quite been a month yet) and so far the small lending I've done since has resulted in 100% repayment rates. (This is only on 5 loans with scheduled repayments so far, so it's a small small sample.) It's quite possible that despite 100% repayment, the loss to currency changes and inflation rates will significantly erode the value of what is put in, but as long as that loss is less then the past average loss due to non-repayments, then the change will represent progress.
Thanks you very much for wonderful information. I also believe that if loans continue to be slowly funded this will discourage the good people who need money to expand their business to join Zidisha. Please lenders continue to lend to help Zidisha to become successful. Thank you. Long live Zidisha.
@KM I hope it works because I read it took a lot of input and research to reach that decision and from your little sample study it seems to work. Guess many are waiting to see how it goes. Nonetheless my loan expired and I had to reapply once more (https://www.zidisha.org/loan/15501). Crossing my fingers this time round .
You could create a new thread requesting Lenders to indicate whether they are seeing the same results. You might be surprised.
I took your advice and started a new thread
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