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Kiva Zip | Frequently Asked Questions <br />https://zip.kiva.org/faq[8/27/2013 9:42:15 AM] <br />repayment, we don't want Zip to become a space where "publicly shaming" borrowers is one of those techniques. Doing this would be against <br />our values and would not create a positive environment that is supportive of all members of the Zip community. <br />On the regular Kiva site, we deal with this issue by taking down the borrower's photo (See example ). On Kiva Zip, it is more difficult to do this <br />because of the connections we are keen that borrowers make to Facebook and other social networking sites. This is why we made the decision <br />to obscure the paying back status of individual borrowers on Kiva Zip. <br />However, we also want to be as transparent as possible. This is why we implemented a repayments badge system for borrowers and trustees; <br />and now publicly display trustees' repayment data on their profile pages -- as soon as we can do this without compromising the privacy of <br />borrowers that are delinquent or in default. <br />Over time, we will strive to display more and more data to lenders, to help inform their choices about the riskiness of the borrowers they are <br />making loans to, and the trustees whose borrowers they are funding. <br />Questions for and about Kiva Zip borrowers <br />What are the benefits to borrowers of using Kiva Zip? <br />Probably the primary benefit to borrowers of getting a Kiva Zip loan is that these borrowers are struggling to access a loan elsewhere. Kiva Zip <br />aims at genuinely expanding opportunities for borrowers, thereby enabling them to achieve the goals they have for their businesses. <br />Another benefit for borrowers is that Kiva Zip loans have zero interest, which makes them a great deal for borrowers! <br />There might also be some marketing benefits to borrowers, from listing their businesses on the Kiva Zip website, if lenders extend their support <br />beyond the loan to become customers of the businesses. <br />It is hoped that many Kiva Zip borrowers might also appreciate the personal connections that they will develop with each of the lenders funding <br />their loan. Kiva Zip is designed so that the borrower can get to know the lenders, through their profiles, just as the lenders get to know the <br />borrower before deciding to make the loan. <br />Finally, it is hoped that by leveraging electronic payment mechanisms like Paypal and M-PESA, and employing online application forms, we can <br />save borrowers time, and allow them to focus their energies on running their businesses. <br />For some examples of some of our first US borrowers' feedback on their loans, please see this blog post. <br />What borrowers qualify for a Kiva Zip loan? <br />There are a number of criteria, as assessed by trustees, that borrowers must meet, in order to qualify for a Kiva Zip loan: <br />The borrower must have a real social and economic need <br />The borrower must have a sound business plan <br />The borrower must not be heavily indebted <br />The borrower must not be in bankruptcy or foreclosure proceedings, or about to enter into them <br />The trustee must endorse the borrower’s character <br />The trustee must determine that the borrower is financially responsible <br />How much money can borrowers borrow on Kiva Zip? <br />Both in Kenya and the United States, the maximum amount that Kiva Zip borrowers can borrow can increase over time, as borrowers <br />successfully repay back their loans. <br />In the United States, the amount that Kiva Zip borrowers can borrow depends on the type of trustee that endorses them. <br />For organizational trustees, the ‘credit ladders’ are as follows: <br />Loan #1 :: Maximum loan = $5,000 :: Loan term = 10 to 24 months <br />Loan #2 :: Maximum loan = $10,000 :: Loan term = 12 to 36 months <br />Loan #3 :: Maximum loan = $20,000 :: Loan term = 24 to 48 months <br />Loan #4 :: Maximum loan = $50,000 :: Loan term = 48 to 72 months