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o
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« on: January 27, 2012, 09:43:03 AM » |
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Hey folks!
What does usually happen after a loan is marked delinquent?
How long does it usually take (months, a year?) until further action?
Is it normal not to receive any updates from the field partner or Kiva?
Thanks in advance!
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Phoenix42
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« Reply To This #1 on: February 03, 2012, 09:56:06 PM » |
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I've had several loans be delinquent at some point, in fact right now 8 out of 56 of my active loans are delinquent, but so far out of 140 loans I've only had one default.
I do believe that for a load to go from delinquent to default, it does take some time, I want to say at least until the end of the loan, if not longer. But I don't recall when my sole default was so declared.
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cpbailey
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« Reply To This #2 on: February 04, 2012, 02:55:13 AM » |
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Generally, loans are not declared defaulted until 6 months after the last payment is due. If it is a field partner issue, then there may be a blanket approach that differs for all loans. I had one loan which defaulted without any reason or warning, long before the last payment was due. The borrower had passed away, so that was sad and understandable.
Generally, I look at the details of repayments. Sometimes a loan is short pennies on a repayment every month. Sometimes a borrower makes double payments every other month. Sometimes there are weekly repayments, and only 4 out of the 5 payments are made (perhaps a holiday on the last one). Many of the delinquent loans will catch up on the 15th of the month.
Colette
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o
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« Reply To This #3 on: February 05, 2012, 05:02:11 PM » |
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Thank you for your input Phoenix42 an Colette!
This particular loan was a one payment "at end of term" kind of loan. The payment was due more than 6 month ago and was way short. Nothing since. I sure hope the borrower is well and happy and actually don't expect anything more to be repaid. I would just like to see the matter "closed" somehow.
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o
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« Reply To This #4 on: March 14, 2012, 06:30:44 PM » |
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I am posting this in reply to my own question for future reference, maybe someone else will be wondering about the same.
So, another month passed without any changes to the loan status, no new payments and no news from the field partner.
I did not want to wait any longer and sent Kiva two questions: when will it be marked as default and can I expect to get any news about the circumstances of this now delinquent/then defaulted loan.
I assumed I would get a reply saying something along the lines: "status is usually changed after x month, updates will/will not typically be posted around the same time. Thanks for asking"
Turns out there seems to be no standard way of operation, and my assumption that Kiva itself would mark the loan as default appears to be wrong as well. My questions have been forwarded to the actual field partner and are expected to be passed on to me by way of Kiva in a week or so.
I am surprised, and pleased I will get real answers regarding this particular loan situation but kind of don't want to bother the fp.
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cpbailey
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« Reply To This #5 on: March 14, 2012, 07:13:58 PM » |
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Generally, a delinquent changes to default 6 months after the last payment is due. There are exceptions. On the 15th in the wee hours of Pacific Time zone, payments will be posted. If there is no change, you can post a link to the loan. Sometimes the MFI has situations which explain issues. Other times partial payments are regular, so it isn't a big worry.
Colette
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o
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« Reply To This #6 on: March 15, 2012, 11:54:48 AM » |
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Just looked the MFI up and it turns out there are several loans that display the same pattern. Generally the stats say 0.03% on defaults but more than 4% on deliquency for CEVI. The loans in question were distributed in Jan'11, had all a "at end of term" repayment policy. "End of term" was Aug'11. This is one of them: http://www.kiva.org/lend/275021 |
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« Last Edit: March 15, 2012, 02:40:31 PM by o »
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wind5001
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« Reply To This #7 on: March 15, 2012, 12:10:49 PM » |
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If you see a pattern in those delinquencies, you might want to contact contactus@kiva.org. It does not seem from the numbers that this MFI is in particular trouble...maybe Kiva can/should inquire about this. |
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o
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« Reply To This #8 on: March 15, 2012, 02:50:04 PM » |
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If you see a pattern in those delinquencies, you might want to contact contactus@kiva.org. It does not seem from the numbers that this MFI is in particular trouble...maybe Kiva can/should inquire about this. I have contacted Kiva 4 days ago asking about my loan (see post above). If they check this one it is likely that the others will be resolved as well. There are some loans that display about the same attributes (distribution period, repayment term, repayment method, AND delinquency [not default]) but it is not an alarmingly high number, I would think. |
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o
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« Reply To This #9 on: April 02, 2012, 05:39:18 PM » |
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the stats say 0.03% on defaults but more than 4% on deliquency for CEVI. I have contacted Kiva 4 days ago
Update: no reply from Kiva & the MFI yet - more than 20 days later The stats do not look as promising anymore: Delinquency Rate: 17.60% Loans at Risk Rate: 31.08% Default Rate: 0.03% |
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