As summarized above PesaZetu provides the following services to its borrowers and lenders:
We share risk and split interest straight down the middle with our lenders. So if a borrower borrows at 6% per month, for example, our lender earns 3% and we earn 3%.
We don’t earn fees if a lender does not earn interest. This ensures our interests are always aligned with our PesaZetu community.
The only other fee we currently charge is applied when a lender withdraws funds from their PesaZetu account. This fee is Kes 33. We earn no money on this fee as it represents our costs.
If a borrower is late in repaying us an additional late fee of 10% of the principal amount to be repaid is charged to the borrower.
Here is an example:
Yes. Borrowers are contractually bound to repay their loans under a loan agreement enforceable in Kenya and governed under the laws of the Republic of Kenya.
That said, lenders need to be fully aware that loans are not secured and that it may not be cost effective to initiate legal proceedings against a borrower over an unpaid small loan. PesaZetu takes every effort to ensure that lenders funds are repaid in full and with interest.
We are currently piloting 3 loan products for 28 day loans. Interest rates for borrowers vary from 6% to 10%.
Borrowers are charged a fee of 10% of outstanding loan principal on amounts not paid on schedule and on a weekly basis.
A pledge to a loan is a commitment by a lender to fund a particular loan.
Let’s say Beatrice has a loan approved for Kes 5,000. Beatrice’s loan is posted onto PesaZetu. Patrick is a lender on PesaZetu and sees Beatrice’s loan. Patrick has loaned money to Beatrice before and she has always repaid in full and on time. Patrick therefore pledges Kes 2,000 to Beatrice’s new loan. He is committing to lend Beatrice Kes 2,000. In order for Beatrice to receive her loan it needs to be fully funded by lenders, that is another Kes 3,000 will need to be pledged. If lenders in addition to Patrick provide another Kes 3,000 to Beatrice she will receive her loan directly to her mpesa account. If not, Patrick and any others who have pledged will have their funds returned to them.
No. We aim to have your loan funded and disbursed in a 2-3 day period. We review loan requests in a matter of minutes for you to approve. Once a loan is approved it is posted to the PesaZetu marketplace for lenders to fund. Once your loan has been fully funded by lenders it is disbursed.
In some circumstances PesaZetu may hold a lender or borrower’s funds for short periods of time. Those funds are never commingled with PesaZetufunds, they are always held separately. Also, PesaZetu does not earn interest on such funds.
Lender: If you are a lender you can access all details about your current and passed loans together with your statements on pesazetu.co. We call this part of the site your lender dashboard? You can access your lender dashboard with your user name and password. We also send you email confirmations throughout your loan cycles.
Borrower: Borrowers can also access all their loan details on their dashboard which they also access with a user name and password.
We also send our borrowers regular reminders by SMS before their loan instalments are due as we understand that many of our borrowers do not always have easy access to the internet.
No. However should a lender wish to initiate proceedings against a borrower they will have a copy of their contract which will contain certain borrower details.
Yes. Online peer to peer or marketplace lending started in about 2005 in the United Kingdom and the United States. Today there are marketplaces in most parts of the developed world and many parts of the developing world.
We think Kenya is ideally suited for peer to peer lending, albeit adapted for Kenyan conditions.
Pesazetu is working with best in class partners to ensure that lenders and borrowers data is held securely at all times.
We will guarantee any losses that a lender or a borrower’s suffers as a result of any system omissions or errors on PesaZetu.
We are in the process of developing our privacy policies. Our objective is to protect the privacy of our lenders and borrowers at all times whilst putting in place frameworks that allow us to report positive and negative borrowers in accordance with Kenyan law and regulations.