Policy on term for borrowing

Discussion in 'Lender Questions' started by Megan, Aug 3, 2017.

  1. Megan

    Megan Forum Member

    I've just discovered that one of the borrowers has changed their term - now to complete in 2057.

    This really concerns me. I imagine that there would be a great deal of stress for the borrower knowing that they have a debt for 40 years (and possibly their children - what happens if the borrower dies? Does the debt get written off?). Does Zidisha have a policy on the maximum term available to repay? If not, I think that one should be formulated.

    Interested to hear others' thoughts on this.
  2. jthiaro

    jthiaro Gold Member Volunteer Mentor

    @ Megan....I totally agree with you, that is totally absurd, unless there is a willingness to increase the payment amount with time...but 4o years for loan repayment is just too loan and beats economic/financial sense.
    yao kossonou likes this.
  3. WendyE

    WendyE Gold Member

    You'll probably find that they actually repay it much quicker than that in the end, but change their original payment schedule to make very small payments for a period of time while they stabilize at the beginning. That's what I've found on several of my previous loans, anyway! Perhaps Zidisha could change the way they write their repayment schedule so that it's more obvious that there will be some larger payments at the end of the loan period, rather than their current way of spreading the loan out over equal small payments.
    Alex Lewa Tsuma likes this.
  4. chelah

    chelah Gold Member

    I tend to agree with you WendyE.
  5. Evaongeri

    Evaongeri Forum Member Volunteer Mentor

    I agree fully, most borrowers keep on adjusting payments now and then due to the current economic situation. They will possibly clear that loan before.
  6. Daniel Kivango

    Daniel Kivango volunteer mentor Volunteer Mentor

    I agree with your suggestion Megan,but what i have noticed especially with some of my invitee,they have decreased in order to equalize or rather to be ahead of the schedule so they can maintain good score,as wendy has said some of this loan get paid even before the actual date of the last installment.
    Evaongeri likes this.
  7. yao kossonou

    yao kossonou Gold Member Volunteer Mentor

    Let us be serious about the borrowers.
  8. Integrated platform

    Integrated platform Timothy Ayemba

    The borrowers makes adjustments just to maintain good repayment history. Most of them clear the loan much earlier than they have scheduled.
    yao kossonou likes this.
  9. Jorum Mwangi

    Jorum Mwangi sinzia Volunteer Mentor

    What if Zidisha do this. Put a certain percent. Example you have been given 1000 kes loan u fix a 10% readjustment that is you cant adjust to below 100.

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