New Unused Credit Policy

[Guest]

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[Sengbe Pieh]

Does anyone else think Daniel's post sounds FAMILIAR?

                                   

There are more & more posts on the Team message boards from lenders who are equally puzzled & concerned about what, exactly, in the gol durn, peapicking world is going on!! The following message was posted yesterday, Dec. 8, on a Team's Message Board:

                                                                                                                                                               

  About disbursal dates and unfunded loans ... there is definitely some growing sentiment that loans are being touted to Kiva lenders that have already been made by the MFI to the entrepreneur. I am not particularly troubled by that operation plan, but see how it diminishes the feeling that a lender's participation is really needed. However, I am very concerned when I read the "DETAILS" on the Repayment Terms to find so many 3-Month loans that were disbursed in October won't have a first payment for a three months, and despite showing a 3-Month repayment, the Details (requires a click on loan page) illustrates a payment schedule of 4-5 months. If the first payment isn't due for three months, and there are five payments, that means a 3-month loan is, in reality, an 8-month loan.

I sorted by Repayment Term and clicked on the Detail of 20+ loans with 3-month terms to find that the payment schedule showed 3 months until first payment, then 4-5 payments. Under what calendar system (or Wall Street system) is that a 3-month loan?

I am not participating on loans packaged deceptively ... I don't want to enable misinformation being given to Kiva lenders. Withholding loans to needy entrepreneurs is unfortunate, but transparency is the new standard for finances, especially my own!

I am awaiting an explanation from Kiva management on this "3-month" loan posted yesterday:

www.kiva.org/app.php?page=businesses&action=about&id=74300&_tpos=2&_tpg=1

Group Name: Gladis Guido Ruiz Group
Group Members: Gladis Guido Ruiz
Alda Felina Mercado
Yamilett Ñamendi
Location: Masaya, Nicaragua
Primary Activity: Soft Drinks
Loan Requested: $675.00
Repayment Term: 3 months - details
Repayment Due Dates
Dec 15, 2008 $38.44
Jan 15, 2009 $155.33
Feb 15, 2009 $157.84
Mar 15, 2009 $200.90
Apr 15, 2009 $122.49
Loan Use: Working capital to offer a greater variety of products to their clients
Date Posted: Dec 2, 2008
Disbursal Date: Oct 24, 2008

KKKKKKKKKK
team captain, XXXXXX YYYYYYY Team


Posted by XXXXXXX
Dec 8, 2008 - 9:11 am PST

                                                                                                                                                                       

Notice that this message was posted by a Team Captain!!

[wthepoo]

Notice that this message was posted by a Team Captain!!

 

No, I am keeping calm... no, I don't want to tire Mona by mentioning (lack of) communications, yet again...

Thanks, Geoff.

Just in case anybody is still wondering or you want to post an explanation on the respective messageboard, Geoff, just to prevent further confusion and/or frustration - though it really would (have) be(en) Kiva's job:

The mentioned loan:

http://www.kiva.org/app.php?page=businesses&action=about&id=74300&_tpos=2&_tpg=1

seems to be a 16-week-loan, which is just short of 4 months, so comes down to 3 months by Kiva's current rounding practice.

It has been disbursed on 24 Oct 2008.

Thus, the borrowers will have to repay on 31 Oct, 7 Nov, 14 Nov, 21 Nov, 28 Nov, 5 Dec, 12 Dec, 19 Dec, 26 Dec (or a day close to that), 2 Jan, 9 Jan, 16 Jan, 23 Jan, 30 Jan, 6 Feb, 13 Feb. The borrowers will most likely pay the same amount each time - which means that the principal contained in that amount is slowly rising (from $38.44 in the first instalment to about $62 in the last instalment).

This means that
* during October, the MFI should have received one instalment with $38.44 principal; Kiva should have billed the MFI for this sum on 15 Nov, and the MFI will now have until 15 December to transfer the funds to Kiva (as it seems that the balance could not be settled right away by netting);
* during November, the MFI should have received four instalments with a total of $155.33 principal; Kiva will bill the MFI for this sum on 15 Dec. In an ideal case, Kiva will then be able to settle the balance right away through netting - otherwise, the MFI will have until 15 January to transfer funds.
* and so on...

Best wishes,
Wolfgang.

[Jan & John]

No, I am keeping calm...
Best wishes,
Wolfgang.

Wolfgang, what would we all do without you if you bash in your head...

I was looking at that same loan the other day...

And along with the weird repayment schedule...

I found that the partner is only 3 star in pilot status.

So I didn't even try to figure it out, I just moved on.

I think it's time that the Kiva explanation included examples of all the different types of scenarios that might apply to loan repayment details...

And then we could have a ready reference page in case you feel a need to go on vacation, or something.

jan

ps  welcome Daniel

[Buchanan Family]

Has ANYONE here seen the elusive newsletter that started being emailed on Dec. 5th?  It's hard to believe that it's already Dec. 9th and no one at KF has received a copy.  From past history, I know that I'll be a few days behind the first here.

If the newsletter itself was officially released when it started being sent on Dec. 5th (or shortly thereafter?), couldn't Gerard or another Kiva employee post an official copy here so we can stop speculating?

Gerard - Another method of improving communication to lenders...  While the Kiva Friends community is a small limited portion of the Kiva community, couldn't you post a copy of the newsletter here when it is/was first available?  That would end a lot of speculation/dissatisfaction here about again being promised something (newsletter on Dec. 5th) that hasn't been delivered.

How can you elicit comments on portions of information in a newsletter that has been received by no one here?

[JoanW]

Has ANYONE here seen the elusive newsletter that started being emailed on Dec. 5th?  It's hard to believe that it's already Dec. 9th and no one at KF has received a copy. <snip>

How can you elicit comments on portions of information in a newsletter that has been received by no one here?

Now they are asking our opinions about a policy change we have not been notified of - that is mentioned in a newsletter we have yet to see - - PRICELESS!!!

Yet another great example of how Kiva communicates with it's lender/funder base. 


FWIW - Since 90+% of Kiva lenders/funders do not access KF, I do not consider anything posted here on KF as an official communication from Kiva until Kiva notifies me they expect me (and all lenders) to monitor KF as the primary means of getting information about my account.

[Diane R]

... until Kiva notifies me they expect me (and all lenders) to monitor KF as the primary means of getting information about my account.

At which point there would need to be someone associated with the Kiva staff who posts news and information here as a primary source, I'd guess.

--Diane.

[cpbailey]

I just got the newsletter.  

1.  It explains the new payment issue.  'bout time!!!  These things should have been sent out WITH the information about the August partial credits so we would know that it would be a feast and then a famine.  

2.  It talks about how Kiva has determined that escheat laws don't apply to Kiva.  

3.  There is a really nice blurb about a baby named Courage whose mom went from nursing to opening a pharmacy so she could care for her new baby.  She dispenses advice along with the over the counter meds, which is a real value add for people who can't afford seeing a doctor!

4.  Bakery Gate with Freddy--gives some background.  I gather Fiona helped set this up, and Freddy DID get $750 from Sprinkles to improve his store.  Sooo, it seems as if Kiva and Freddy were willing participants.  Hopefully, Fiona managed to get a release signed.

5.  Cambodian comic with meeting and client visit pictures.  Rather cool.

6.  Stats on Kiva

7.  The five biggest Campus Teams

8.  In case Kiva doesn't get enough cash from taking inactive accounts, they remind you that you can donate by year end for taxes in 2008.  

Colette

[waywardcats]

I just got the newsletter.  

Colette

Colette,

Could you possibly post a copy?

Thanks,

-Kerry-

[redstarr]

I'm glad the abandoned credits are going to be able to start doing something.  I thought it was kind of a shame to have the money just sitting around when it could be helping kiva, either through being re-loaned or through going into operating expenses.  Glad to see a decision has been officially made to deal with those abandoned funds. 

[cpbailey]

I think a more appropriate decision would have been that after a year, one would have to reinstate the account which would take a month.  Meanwhile, the money would be staggered in various higher interest accounts (chosen on Wednesdays as that is when banks have to show that they have adequate funds, so lower funded banks will increase interest to attract money).  Accounts would be under the $250k or whatever it is to ensure that it is covered by federal guarantees.  A portion of the loans could be made to microfinance organizations in the US or even in Kiva.  There is NO way everyone will decide to recover the money at one time, so keeping 5-10% in overnight funds, 10-20% in one month or less, and stagger the rest would probably cover it.

Kiva would be able to use the money, and not seem to be grabbing it from people who might have forgotten about it, changed emails, or have to figure out about the account on behalf of the deceased.

Colette