Reduction of time between loan size progressions

Discussion in 'Announcements' started by Julia Kurnia, Nov 29, 2013.

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  1. Julia Kurnia

    Julia Kurnia Director, Zidisha Zidisha Staff

    Dear all,

    We have incorporated additional flexibility into the minimum time period between loan size increases, to allow for faster graduation to substantial loan amounts for the members who repay small initial loans on time.

    The new minimum time periods between each increase in loan size are:
    • For members who hold loans below $200: 1 month
    • For members who hold loans between $200 and $1,000: 3 months
    • For members who hold loans between $1,000 and $3,000: 6 months
    • For members who hold loans above $3,000: 12 months
    The time period is measured as the number of months between the day the loan is disbursed, and the day the following loan application is posted.

    For example, a member who receives a $50 loan disbursement on January 1 and repays it within a few weeks could raise not more than $50 again if he posts another loan application on January 20. If he waits until February 1 to post the new loan application, then the minimum time period would have passed, and he would be able to raise the next step up in maximum loan size (currently $150).

    As with our other credit policies, these parameters are not set in stone. We will continue to adjust the loan size progression in response to performance, so that we can maximize borrowers' ability to raise the amounts they need while still protecting lenders from credit risk.

    Best,

    Julia
     
    KirstenShute, Jean Wendpanga and AHTS like this.
  2. Jean Wendpanga

    Jean Wendpanga Gold Member Volunteer Mentor

    Hi Julia,
    Very good idea. Thank you
     
    KirstenShute likes this.
  3. Jean Wendpanga

    Jean Wendpanga Gold Member Volunteer Mentor

    Hi,
    I wonder if a Member which took 100 USD and paid the first month's payment, he can pay the rest its first loan and start a new loan application?
     
  4. Julia Kurnia

    Julia Kurnia Director, Zidisha Zidisha Staff

    Dear Mr. Wendpanga, yes, loans may be repaid at any time. Once repaid members may post new loan applications immediately. However, in order to apply for a larger loan, there is a minimum period of one month between disbursement of the first loan, and posting of the next loan application.
     
  5. Jean Wendpanga

    Jean Wendpanga Gold Member Volunteer Mentor

    Thank you for your reply Julia
     
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