Do II Summary

Discussion in 'KivaDO2 | 2013' started by fcjapan, Oct 31, 2013.  |  Print Topic

  1. fcjapan

    fcjapan Gold Member

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    Was there any info presented or privately discussed in regard to:
    Opus Dei and Strathmore
    "Catalytic" loans and due diligence
    Interest rates
    Risk management

    Thought of attending but scrapped it, but if any of this was brought up anywhere, details appreciated.
     
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  2. KyRoamer
    Original Member

    KyRoamer Gold Member

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    Did you discuss delays in moving loan status from delinquent to default. 27% of my loans are now delinquent, many for over six months.

    That said, looking at my Kiva history, if all went bad my bad debt percentage would still be under 2. Right now it is at 0.89% but that really is fictitious.

    To get real numbers, I have stopped lending at Kiva and am lending some at Kiva Zip.Wish our team got credit for those loans. When Kiva is played out I will know better what the real losses are.

    I soon will be at under $1,000 on Kiva and out 97% within the year. By Do III I should be back active.

    I encourage you to look at Zip lending. Was it discussed at the Do? I have no losses yet except a small currency loss but view Zip as more risky. Still, since I stay at $25 per loan, my risk is spread out. I believe the average repayment rate is around 87% so for now I not lending more than I can afford to lose. I am shooting (maybe very unrealistically) for losses of $5% or less.

    We will see.
     
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  3. miles and smiles
    Original Member

    miles and smiles Gold Member

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    Be cautious with Zip lending. I have far more delinquencies there than I do with Kiva. It took me a while to realize this as Zip doesn't keep track of delinquencies for us the way Kiva does.
     
  4. KyRoamer
    Original Member

    KyRoamer Gold Member

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    Of my 20 loans, four are paid back, four are not yet funded and 12 are live and repaying. On one seriously delinquent loan this message was posted:

    As you know, Kiva Zip is a pilot program. Based on concerns Kiva received, and upon further review of the trustee for this loan, we've decided not to continue to work with this trustee. We depend on trustees to support Zip borrowers, and we want our lenders to feel that they can depend on trustees as well. Therefore, we've decided to refund lenders that contributed to all of the loans endorsed by this trustee. The money you lent will be back in your Kiva Zip account. Thank you for your patience and support as we continue to pilot the Kiva Zip program.
    Daniel, Zip Admin, Sep 23, 2013

    I have yet to see the money though. That was my one $50 loan and I am short about $38. I have another loan one payment behind with a note that a PayPal issue caused the miss and in November all will be caught up. I have one more a payment behind awaiting payment on a large PO.

    Now those delinquent might turn into defaults but what I like is the communication. I feel pretty good about my situation.
     
  5. miles and smiles
    Original Member

    miles and smiles Gold Member

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    Thanks for sharing this. Which country was the loan in? I have a number of severely delinquent loans, but no refunds coming in.
     
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  6. KyRoamer
    Original Member

    KyRoamer Gold Member

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    Denver, Co. USA

    See https://zip.kiva.org/loans/487. Look at conversations. Not sure whether Daniel quote is applicable to this loan or its endorser. I sent an email asking about this. Last endorsed loan was in June. As a non-lender I can not access payment history or conversations. But ....

    Trustee Type:
    Non-profit
    Location:
    Denver, CO
    Badges:
    [​IMG] [​IMG]
    On Zip Since:
    Sep 18, 2012
    (14 months)
    Loans Endorsed:
    6
    Total Value:
    $29,000
    Fundraising/Raised:
    0
    Paying on Time:
    3
    Paying Back Late:
    2
    Repaid in Full:
    Not enough data
    Defaulted:
    Not enough data
    Repayment Rate:
    82%
    Whatever ....
     
  7. icurhere2
    Original Member

    icurhere2 Gold Member

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    At multiple Kiva events in the past month (I had the Kiva U Summit and Kiva Do II), they have described the default rate of Zip loans as much higher, with repayment rates a little over 90%. The primary determinants in repayment rate is the breadth of the tree of the trustee and the number of friends/family invited that contribute to the loan.
     
  8. miles and smiles
    Original Member

    miles and smiles Gold Member

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    Thanks for the update KyRoamer. I am in the midst of researching all of my Zip loans, and once I am done I will send a letter to Zip asking for more info about he severely delinquent ones. At the least I know they are trying to learn about how to keep defaults down. My preliminary analysis shows me as having over 15 Zip loans which are 5 or more payments behind.
     
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