Frequently Asked Questions
"Mytrustin" is the Swahili word for "grow" or "expand", as in a business or a quality such as freedom or prosperity.
Mytrustin is the first-ever online microlending community that directly (!) connects lenders and borrowers - without any intermediaries. Unlike more mainstream microloan websites - like Kiva and MyC4 - that use local intermediary organizations, Mytrustin offers a direct person-to-person lending platform. Why is direct better? Because loans managed by local intermediary organizations charge insanely high interest rates (an average of 35%!) to the borrowers to cover their own administrative costs. Mytrustin puts 100% of the money lent in the borrowers' pockets at substantially lower interest rates. We also give lenders and borrowers the opportunity to communicate with each other directly - so you can see everyone's stories unfold right before your eyes and experience it with them from the other side of the world.
Mytrustin borrowers are located in low-income countries where small business loans are often unavailable, or carry insanely expensive interest rates (often above 40%) along with collateral requirements. Mytrustin offers an easy, accessible alternative that allows the borrowers to get business expansion loans on flexible terms and at interest rates they can easily afford. Lower interest rates allow borrowers to keep a majority of their profits and use them to invest back into their businesses or to support their families - instead of forking them over to a financial institution.
Mytrustin's direct person-to-person connection results in far lower cost for the borrowers, and a more transparent and interesting experience for lenders. Our first-of-its-kind direct lending platform ensures that the profits go to the borrowers and lenders (no cut of it goes to a bank). We also allow lenders to set their own interest rates - if any at all. And the direct dialogue that takes place every day between lenders and borrowers in our community maximizes transparency - and even builds friendships.
Mytrustin itself controls each individual loan disbursement and repayment collection via the internet, so that management of Mytrustin funds does not need to be outsourced to intermediary parties. Loan applications and business updates are posted on the website by the borrowers themselves. This allows our lending service to be provided independently of local intermediaries.
No. Mytrustin does not keep any office or employ any paid staff in borrower countries. Instead, we keep the cost of microlending low by providing all of our services over the internet. However, we are lucky to have experienced borrowers that serve as Volunteer Mentors and monitor and assist fellow borrowers on a volunteer basis - as well as international interns that can also visit borrowers.
Borrowers find us! Anyone who lives in a country serviced by Mytrustin may apply to raise a loan - and potential borrowers themselves take the initiative to apply. The majority of Mytrustin applicants find us by word of mouth, as current borrowers recommend Mytrustin to other members of their communities. Borrowers also find us through web searches, blogs, or Facebook posts.
Borrowers that apply to join Mytrustin must provide their precise residential address, telephone number, and national identity number before we allow them to post a loan application. We also require them to verify their online identity by linking an active personal Facebook account to their Mytrustin account. Applicants must also provide personal references and the contact information for a local community leader (like a school principal or leader of a place of worship) who can provide a recommendation for them. The local banks and payment services that process Mytrustin loan disbursements also check the loan recipients' national identity cards.
No. Mytrustin is not a bank or credit bureau, does not offer any guarantee of the accuracy of information presented by borrowers, and does not conduct any assessment of the incomes, debt levels, or credit-worthiness of borrowers. It is up to the lenders to determine if a proposed business venture is viable and worthy of being funded.
The total cost to the borrower for each loan is the 5% flat transaction fee, plus the weighted average flat interest rate bid by lenders financing the loan. For example, if lenders bid to finance a three-month, $100 loan at 3% weighted average interest, then the total cost to the borrower will be (5% + 3%) * (3 / 12) * $100 = $2. The borrower in this example would repay $2 in fees and interest on the $100 loan.
In addition, borrowers pay a one-time new member registration fee of approximately 2000(INR), which is charged ONLY if the new member succeeds in raising a loan through Mytrustin.
In addition, borrowers pay a one-time new member registration fee of approximately 2000(INR), which is charged ONLY if the new member succeeds in raising a loan through Mytrustin.
No. Mytrustin is a low-cost nonprofit community (managed by volunteers). Our organization is responsible only for maintaining the Mytrustin website as a platform for the transactions that take place between its members. Accordingly, we do not make any representation or promise that lenders will recover their funds or earn a positive rate of return.
Loan disbursement and repayment transactions are conducted via electronic payment order from a local currency bank account, and borrowers deposit cash repayments to the same checking account at the branch located nearest them.
Mytrustin is a nonprofit organization. That means we rely on voluntary contributions and super-generous donations from our lenders and supporters to help cover operating expenses, like web hosting, bank fees, telephone costs, regulatory fees, and the ongoing development of our web platform.
Borrowers pay a 5% fee on each loan they take out through Mytrustin in order to cover the money transfer costs incurred as a result of their loan. Borrowers also pay a small, one-time new member registration fee upon successfully raising their first Mytrustin loan.
We don't charge any service fee to lenders. But, we do ask that those who participate contribute what they can to support our growth. (And we're incredibly thankful when they do!)
Borrowers pay a 5% fee on each loan they take out through Mytrustin in order to cover the money transfer costs incurred as a result of their loan. Borrowers also pay a small, one-time new member registration fee upon successfully raising their first Mytrustin loan.
We don't charge any service fee to lenders. But, we do ask that those who participate contribute what they can to support our growth. (And we're incredibly thankful when they do!)
Volunteers and interns conduct most of Mytrustin's day-to-day operations-including application review, loan payment processing, data entry, email support, accounting, and web development. Our volunteer staff includes part-time volunteers who work remotely with us from their home locations worldwide, and full-time volunteers who travel to countries where Mytrustin has lending programs and work directly with borrowers.
Please visit our Volunteer or Intern page to learn more about our volunteering and internship opportunities.
Please visit our Volunteer or Intern page to learn more about our volunteering and internship opportunities.
Yes! Lenders and borrowers can message each other back and forth to send updates about the impact of the loan or even simple notes of thanks or inspiration. Lenders can be sure that everything they see posted in a borrower's name - whether it be on profile pages, loan applications, or borrower comments - is written directly by that borrower, or by a computer-savvy friend or family member who may assist the borrower in posting content onto the website. Although Mytrustin volunteers may provide English translations of borrower postings and edit titles for clarity, we do not otherwise modify borrowers content or write it on their behalf.
All interest rates displayed on the Mytrustin website are expressed as flat percentages of loan principal per year the loan is held. For example, for a loan of INR 100, taken at 4% annual interest with a repayment period of six months, the total interest amount will be INR 100 * 4% * (6 months / 12 months) = ₹ 2.
What is the difference between flat interest rates and declining balance interest rates?
What is the difference between flat interest rates and declining balance interest rates?
Simply put, we use flat interest rates to make it easy for borrowers and lenders to calculate the interest of their loans. It also helps when comparing Mytrustin to other microfinance loans in borrowers' communities that also use the flat rate interest rates.
What is the difference between flat interest rates and declining balance interest rates?
What is the difference between flat interest rates and declining balance interest rates?
All Mytrustin loans are fixed in local currency(INR)upon disbursement. Exchange rates can fluctuate during the course of the repayment period, causing the Indian Rupee value of the loans to increase or decrease-and in turn, leading to monetary gains or losses for lenders. Lenders assume this currency risk when they bid on a loan. Tip: Since exchange rate fluctuations often go both ways for multiple currencies during the same time period, we suggest spreading lending activity across multiple countries to help hedge against currency risk.
The exchange rates applied to all Mytrustin transactions are determined by the interbank value of one Indian Rupee in local currency, as posted on the foreign exchange conversion website www.oanda.com. We update the website exchange rates on the first day of each month, so that the exchange rates in effect on the first of each month are applied to all transactions during that month. Here's a breakdown of how conversion rates work throughout the life of a Mytrustin loan:
- When borrowers create a loan application: the local currency amounts they request are converted to Indian Rupees, and the loan amount remains fixed at that Indian Rupee value throughout the fundraising period until the loan is disbursed.
- At the time of disbursement: the Indian Rupee amount raised is converted back into local currency at the exchange rate in effect on the date of disbursement.
- At disbursement: loan amounts are fixed in local currency, so that borrowers' repayment obligations are not affected by exchange rate fluctuations.
- Each time a borrower makes a repayment: the amount received in local currency is converted to Indian Rupees at the exchange rate in effect at the time the repayment is received. The resulting Indian Rupee value of the repayment becomes the basis for the amounts credited to the lenders who funded the loan.
We currently offer loans to residents of Benin, Burkina Faso, Ghana, Guinea, Indonesia, Kenya, Niger, Senegal and Zambia.
We have adopted the following Code of Ethics, to which everyone who works with Mytrustin must adhere.
- We will treat every applicant and client with courtesy and respect, and will serve them as timely and conveniently as possible. We will provide every client with a channel of communications through which they can give feedback on service quality, and will do our utmost to respond timely and effectively to any client complaints.
- We will provide all applicants and clients with complete and understandable information regarding the cost of our loans and terms of repayment.
- We will do our utmost to avoid causing over-indebtedness by doing our best to ensure that those who raise loans through our platform do not hold other debt, by limiting loan amounts based on past repayment history, and by verifying proposed total and monthly repayment amounts with clients before their loan applications are posted for funding.
- We will do our utmost to ensure that the business endeavors financed with our loans do not become a vehicle for child labor, or any other abusive or illegal practice.
- We will strive to prevent abuse of our lending platform through energetic pursuit of willful defaulters. At the same time, we will treat all clients regardless of repayment status with courtesy and respect, and will not deprive them of their basic means of livelihood in order to repay a loan.
Acceptable repayment collection practices include reminders, mediation involving local community leaders, and judicial process.
Unacceptable repayment collection practices include abusive language, threats, harassment of borrowers at their place of work or worship, forcible entry to homes, and seizing property without court order or in violation of the law. - We will protect client information from those not legally authorized to see it.
- We will price our services at fair rates, with fees set at levels just sufficient to ensure the sustainability and growth of our organization. As a nonprofit organization, all revenue will be used to finance our lending program operations and to invest in their further development.
- We will avoid conflicts of interest by recusing ourselves of any involvement in organizational decisions that may result in personal benefits to ourselves or to our family members.
- We will not accept payment or gifts of substantial value from applicants or clients.
- Should a violation of any of these principles come to our attention, we will notify Mytrustin management immediately. Management will ensure that violators of our Code of Ethics are sanctioned.
No. Mytrustin is a platform for philanthropy, not a replacement for traditional savings accounts or financial investments. Mytrustin loans can be highly risky, as direct person-to-person lending across international borders is such a new thing. Any losses cannot be predicted with any accuracy, so Mytrustin is not a safe way to store funds you cannot afford to lose. So we recommend that you treat Mytrustin loans simply as a way to help others, and that you lend no more than you would normally be prepared to give away to charity.
When a Mytrustin entrepreneur posts a loan application, he or she sets the amount he or she would like to raise, the weekly or monthly repayment installment amount he or she prefers, and the day of the week or month he or she would like to commit to making repayment installments. Lenders can then place bids to fund any portion of the loan at any interest rate they desire, anywhere from zero to 20%.
When a loan application is really popular and the total amount of bids received exceeds the amount requested, then only the bids with the lowest offered interest rates get priority. In other words, the bidding process works like a reverse auction, where loans are funded at the lowest rates that are acceptable to both the lender and the borrower.
When a loan application is fully funded, the borrower must confirm his or her acceptance of the loan. Once that's done, we disburse the loan to the borrower in their local currency.
When a loan application is really popular and the total amount of bids received exceeds the amount requested, then only the bids with the lowest offered interest rates get priority. In other words, the bidding process works like a reverse auction, where loans are funded at the lowest rates that are acceptable to both the lender and the borrower.
When a loan application is fully funded, the borrower must confirm his or her acceptance of the loan. Once that's done, we disburse the loan to the borrower in their local currency.
The minimum amount for a loan bid is one Indian Rupee, and the maximum is the full amount requested by the applicant.
If a loan is not fully funded by the expiration date, then funds that had been pledged are returned to the lenders, and the applicant may start over with a new loan proposal.
Lenders worldwide may credit their accounts instantly using a PayPal account, or with a credit or debit card via Stripe. There is a 3.5% fee for both of these payment methods, which matches the average transaction fees deducted by PayPal and Stripe. This fee allows Mytrustin to receive and pass on 100% of your loan to the borrower - where it will do a world of good.
Lenders may request to withdraw any funds that are not outstanding with borrowers at any time. Withdrawals are sent via PayPal.
IMPORTANT NOTICE: Mytrustin offers no warranty or promise to make cash payouts to lenders. Please see our Terms of Use for more information.
No, Mytrustin does not guarantee repayment of loans. Lenders fund loans at their own risk and out of the goodness of their hearts, with the understanding that they may lose part of all of the funds lent. So we suggest that you treat lending through Mytrustin a philanthropic activity - and as always, don't lend out any funds that you cannot afford to lose.
Keep in mind that most borrowers do not have home computers, and may be away from the internet for extended periods. If you are having difficulty communicating with a borrower directly, we recommend posting a message on the profile page of the Volunteer Mentor or the inviting member listed in the borrower's loan profile to request an update.
Each time Mytrustin receives a repayment installment from a borrower, your share of the amount received is credited to your Mytrustin lending account. You can then use the credit to finance new Mytrustin loans, or request a withdrawal of all or part of your balance.
IMPORTANT NOTICE: Mytrustin offers no warranty or promise to make cash payouts to lenders. Please see our Terms of Use for more information.
Your share of each loan repayment you receive is equal to the percentage of the loan you financed, plus the interest rate previously agreed upon between you and the borrower. Please note: Since loan amounts are fixed in local currency, the exact dollar value of each repayment will depend on the current exchange rate when the repayment installment is made.
Each repayment installment is composed of principal and interest in a ratio that remains constant throughout the loan repayment period. At the time of disbursement, the value of loan principal and interest is fixed in local currency. The total amount of loan principal due to be repaid to each lender is equal to the percentage of the loan principal funded by that lender, multiplied by the local currency value of the loan principal. The total amount of interest due to each lender is equal to the local currency principal amount due to that lender, multiplied by the interest rate bid by that lender.
When a repayment is received, the principal portion of the repayment is divided among lenders in amounts corresponding to the percentage of the loan funded by each. To determine each lender's share of the interest payment received, the percentage represented by the value of the repayment installment received, divided by the total amount to be repaid by the borrower, is applied to the total interest amount due to that lender. The local currency principal and interest amounts due to each lender are then converted to Indian Rupees at the exchange rate in effect as of the date the repayment is received. The resulting Indian Rupee amount is credited to the lender's account.
When a repayment is received, the principal portion of the repayment is divided among lenders in amounts corresponding to the percentage of the loan funded by each. To determine each lender's share of the interest payment received, the percentage represented by the value of the repayment installment received, divided by the total amount to be repaid by the borrower, is applied to the total interest amount due to that lender. The local currency principal and interest amounts due to each lender are then converted to Indian Rupees at the exchange rate in effect as of the date the repayment is received. The resulting Indian Rupee amount is credited to the lender's account.
Why are so many of my repayments made early or late, or in greater or lesser amounts than scheduled?
Most Mytrustin borrowers do not have salaried jobs, insurance, or substantial savings. Unfortunately, accidents, illness, and death happen much more frequently in these developing countries than in wealthy countries, too. As a result, most Mytrustin borrowers' incomes are erratic and vulnerable.
At Mytrustin, we try to be accommodating by allowing borrowers to modify their scheduled repayments as necessary to adjust for fluctuations in their disposable income. Giving them the option to pay more when income is strong and steady-and less when money is scarce-gives borrowers a buffer against financial shocks, and helps ensure that the loans do not take away from their basic livelihood.
At Mytrustin, we try to be accommodating by allowing borrowers to modify their scheduled repayments as necessary to adjust for fluctuations in their disposable income. Giving them the option to pay more when income is strong and steady-and less when money is scarce-gives borrowers a buffer against financial shocks, and helps ensure that the loans do not take away from their basic livelihood.
Small business owners in developing countries can't afford to take as much risk as entrepreneurs in wealthy countries. That's because they don't have the same social “safety nets” that can keep them from losing their households and basic resources.
So small business owners often protect their households from this risk by maintaining multiple revenue-generating activities at the same time, or by switching quickly from one activity to another in response to changes in the market or other circumstances. For this reason, it is common for Mytrustin borrowers to apply for and invest loans in more than one business - and to raise loans totally unrelated to their previous loans if needed.
So small business owners often protect their households from this risk by maintaining multiple revenue-generating activities at the same time, or by switching quickly from one activity to another in response to changes in the market or other circumstances. For this reason, it is common for Mytrustin borrowers to apply for and invest loans in more than one business - and to raise loans totally unrelated to their previous loans if needed.
We do our best to prevent repayment problems in the first place by making sure that credit amounts are commensurate with borrowers' demonstrated credit-worthiness. Their track record of successful repayment qualifies them for access to increasing loan amounts.
However, borrowers may experience disruptions in income due to unexpected circumstances, resulting in inability to make a loan repayment installment on the date it is due. When a borrower misses a payment, we issue a courtesy reminder by email and text message to the borrower's mobile phone within one week of the missed payment's due date. We do our best to get in touch with the borrower, understand the circumstances that caused the missed payment, and agree to a reasonable repayment plan. If needed, we may request mediation from local contacts of the borrower, such as the community leader who recommended the borrower to Mytrustin, family, or neighbors. As a last resort, we may opt to pursue legal action following local regulations in each country.
Mytrustin adheres to the Smart Campaign's Client Protection Principles for fair and respectful recovery practices. Our repayment recovery methods include reminders, mediation involving the local community leaders and other contacts that referred borrowers to Mytrustin, and judicial process. We will never engage in harassment, abusive language, threats, or seizure of property without court order. We will also not deprive borrowers of their basic means of livelihood in order to repay a loan.
However, borrowers may experience disruptions in income due to unexpected circumstances, resulting in inability to make a loan repayment installment on the date it is due. When a borrower misses a payment, we issue a courtesy reminder by email and text message to the borrower's mobile phone within one week of the missed payment's due date. We do our best to get in touch with the borrower, understand the circumstances that caused the missed payment, and agree to a reasonable repayment plan. If needed, we may request mediation from local contacts of the borrower, such as the community leader who recommended the borrower to Mytrustin, family, or neighbors. As a last resort, we may opt to pursue legal action following local regulations in each country.
Mytrustin adheres to the Smart Campaign's Client Protection Principles for fair and respectful recovery practices. Our repayment recovery methods include reminders, mediation involving the local community leaders and other contacts that referred borrowers to Mytrustin, and judicial process. We will never engage in harassment, abusive language, threats, or seizure of property without court order. We will also not deprive borrowers of their basic means of livelihood in order to repay a loan.
Borrowers may modify their repayment schedules if unexpected expenses or loss of income prevent them from repaying as quickly as originally anticipated-or if they find they are able to repay more quickly than originally anticipated. Repayment schedules may be modified to either reduce or increase installment amounts, but the installments may not be skipped entirely.
Whenever a loan is rescheduled, the total interest due to lenders is adjusted so that lenders earn the same monthly interest rate over the new loan period. For example, a lender who was due to receive $1 per month in interest for a 12-month loan would be owed $12 in interest for that loan. If the loan were rescheduled to be repaid in 18 months, then the lender would be owed a total of $18 in interest.
Whenever a loan is rescheduled, the total interest due to lenders is adjusted so that lenders earn the same monthly interest rate over the new loan period. For example, a lender who was due to receive $1 per month in interest for a 12-month loan would be owed $12 in interest for that loan. If the loan were rescheduled to be repaid in 18 months, then the lender would be owed a total of $18 in interest.
In exceptional cases, Mytrustin offers lenders the option to forgive their shares of individual loans they have funded for humanitarian reasons. When this option is activated for a loan, all lenders who are owed repayments for that loan are notified by email. If a lender chooses to forgive his or her share of a loan, the remaining amount owed by the borrower will be reduced by the amount that would have been paid out to that lender, and the lender will receive no further repayments for that loan. Lenders who choose to forgive their shares of loan repayments will remain anonymous, and borrowers will be notified only of the amount by which their remaining balances have been reduced. The loan profile page will display the reduced repayment schedule and a note indicating the number of lenders who have forgiven their shares in repayment of the loan. Other lenders' decisions to forgive loans will not affect amounts owed and repaid to lenders who do not elect to renounce repayments.
No. Only your Mytrustin username, city and country, and photo (if you upload one) will be displayed on our website, and no information not publicly displayed will be communicated to borrowers. Borrowers may communicate with lenders via the comment forum on each loan profile page.
We do not recommend treating loan amounts as tax-deductible donations, because you might ultimately get those funds back if you withdraw the repayments from your lender account.
However, donations made to Mytrustin's operating costs are tax-deductible in the United States.
However, donations made to Mytrustin's operating costs are tax-deductible in the United States.
Mytrustin is a nonprofit microlending service whose primary motive is social impact, not number crunching. We are not intended as a financial investment platform, and we are not licensed to market loans as financial securities. We don't display the tracking of financial returns so that we don't give the impression that we're a good place to store your assets or make for-profit investments-and in order to ensure that we are in compliance with RBI regulations governing the marketing of financial securities.
Mytrustin loan applicants must fulfill the following eligibility criteria:
- Be of good reputation and have the support of family, neighbors and a local community leader (such as a school principal or leader of a place of worship).
- Not currently hold any debt or outstanding loans from other sources.
- Have an active business or employment with sufficient income to ensure repayment of the loan in regular installments.
- Have access to the Internet on a regular basis, and be able to fill out borrower profile and application forms and respond to lender comments at the Mytrustin website.
- Hold an active personal Facebook account with extensive social connections.
- Be able and committed to posting frequent updates regarding use of the loan and progress of the business on the Mytrustin website.
- Reside in a country where Mytrustin currently operates.
You may take out a loan for any purpose, as long as the purpose is legal and ethical. Mytrustin members have raised loans for business growth capital, professional tools, university tuition, home improvements, health care and more. If your loan will not be used for a revenue-generating investment, you should explain the source of income that will be used to make repayments in your loan application.
Mytrustin loans are not financed by a bank, or by donations. Instead, individual internet users from around the world visit the Mytrustin website and choose loans to fund. When borrowers repay the loans, repayments are sent to the individual lenders who financed the loans, and the repayments may then be reinvested in other Mytrustin loans.
Lenders choose to fund loans for various reasons. Most often, lenders wish to help entrepreneurs succeed in growing their businesses. Through Mytrustin, lenders get the chance to hear directly from the borrower about how their loan funds have helped. They also get the opportunity to get to know a small business owner on the other side of the world and learn about daily life and culture in that country. The direct connection between lender and borrower improves transparency, so lenders can be sure that all of their funds are going to their intended beneficiaries. Yes, lenders can earn interest through Mytrustin. However, making money is not the main reason most lenders participate. The interest earnings allow lenders to compensate for credit risk and for costs such as money transfer fees and changes in currency exchange rates, so they can preserve the value of their loan funds over time.
You can borrow 50000 to 5,00,000 Indian Rupees . After that, your credit limit will increase depending on your record of on-time repayments.
The current loan size progression is as follows:
The current loan size progression is as follows:
- ₹ 50000
- ₹ 62500
- ₹ 78125
- ₹ 109,375
- ₹ 153,125
- ₹ 214,375
- ₹ 300,125
- ₹ 420,175
- ₹ 588,245
- ₹ 823,543
Mytrustin does not set an interest rate on its loans. Instead, lenders propose their own preferred interest rate, which may be between 5% and 24%. If lenders find your application compelling, they may choose to fund the loan below the maximum interest rate of 24%.
Interest includes a service fee of 5% of the original loan amount per year the loan is outstanding (any interest above the 5% is paid to lenders). Mytrustin is a nonprofit organization, and the service fee is used to pay for necessary operating costs such as bank fees and money transfer charges.
New applicants also pay a one-time, fixed registration fee upon funding of their first loan. The registration fee is not paid up front, but is deducted from the disbursement of the first loan. If a prospective borrower's loan application is not funded, then no fee is charged.
Interest includes a service fee of 5% of the original loan amount per year the loan is outstanding (any interest above the 5% is paid to lenders). Mytrustin is a nonprofit organization, and the service fee is used to pay for necessary operating costs such as bank fees and money transfer charges.
New applicants also pay a one-time, fixed registration fee upon funding of their first loan. The registration fee is not paid up front, but is deducted from the disbursement of the first loan. If a prospective borrower's loan application is not funded, then no fee is charged.
The interest rate is the weighted average of all lender bids, plus a 5% transaction fee which is used to cover Mytrustin's money transfer costs. Since lender bids must be either less than or equal to the maximum rate of 24%, your interest rate will not be greater than 24% and may be less. It is an annualized rate, a flat percentage of the loan principal amount per year the loan is held.
The final interest rate will always be somewhere between 5% (the minimum transaction fee) and the maximum interest rate of 24%. The exact rate is determined by the weighted average interest rate bid by the lenders on each loan.
The final interest rate will always be somewhere between 5% (the minimum transaction fee) and the maximum interest rate of 24%. The exact rate is determined by the weighted average interest rate bid by the lenders on each loan.
Repayments are made in monthly installments, depending on your country. You may choose your own preferred amount to repay in each installment, and your own preferred day of the month on which repayments will fall due.
You are responsible for initiating loan repayment transfers using the mobile phone or bank payment service Mytrustin has adopted in your country. You may view Mytrustin's account number and payment instructions in the "Repayment Schedule" page of your Mytrustin account.
Repayments received are posted on your loan profile page within three business days. If you sent a payment and it is not posted on your profile within three business days, please send an email to connect@mytrustin.com with your payment amount, date and transaction ID number so that we may locate it.
If you cannot pay the full amount due on the scheduled date, you must modify your repayment schedule in order to remain in good standing and avoid penalties. To do this, log in to your Mytrustin account and use the "Reschedule Loan" page to propose a repayment amount that you can afford. You may reduce the amount due as necessary, but you cannot skip a scheduled installment entirely. Rescheduling your loan will not affect your on-time repayment score as long as you honor the new repayment schedule. You may reschedule your loan again to increase installment amounts once you are able, so that the total repayment period and interest due is not increased any more than necessary.
Yes, you may repay your loan at any time. However, please note that there is a minimum amount of time loans must be held in order to qualify for a larger credit limit. If you repay your loan before the minimum length of time has passed, you may still raise a new loan, but the maximum amount will not increase.
Late repayments damage lenders and other borrowers, because they are deprived of funds that could be lent to other deserving borrowers if they were repaid when due. Late repayments also damage your reputation and ability to earn confidence from lenders, who had trusted your commitment to make loan repayments on or before the date promised. This damaged trust may make it harder for you to fund new loans at favorable interest rates through Mytrustin in the future.
You are responsible for managing your business in a way that ensures you will be able to pay loan installments in full on the dates they are due. If unexpected circumstances make it impossible to deposit a payment in full when it is due, it is your responsibility to use the "Reschedule" page in your Mytrustin account to adjust the installment to an amount you can afford.
If you miss a scheduled payment, Mytrustin will issue one courtesy reminder by text message to your mobile phone. If the payment still is not made, Mytrustin will request mediation from members of your community. If mediation is not effective, Mytrustin may determine that the loan is defaulted. The consequences of defaulting on a Mytrustin loan include disqualification from funding any new loans in the future, reporting of the default to local credit bureaux as well as all organizations that have previously lent to the borrower and/or lend in the borrower's area, and legal prosecution resulting in confiscation of the borrower's property, fines and other legal penalties.
You are responsible for managing your business in a way that ensures you will be able to pay loan installments in full on the dates they are due. If unexpected circumstances make it impossible to deposit a payment in full when it is due, it is your responsibility to use the "Reschedule" page in your Mytrustin account to adjust the installment to an amount you can afford.
If you miss a scheduled payment, Mytrustin will issue one courtesy reminder by text message to your mobile phone. If the payment still is not made, Mytrustin will request mediation from members of your community. If mediation is not effective, Mytrustin may determine that the loan is defaulted. The consequences of defaulting on a Mytrustin loan include disqualification from funding any new loans in the future, reporting of the default to local credit bureaux as well as all organizations that have previously lent to the borrower and/or lend in the borrower's area, and legal prosecution resulting in confiscation of the borrower's property, fines and other legal penalties.
Once your loan is fully repaid, you will be eligible to post a new loan application for funding on the Mytrustin website. If lenders' experience is positive, they will likely be engaged and willing to lend to you again to support growth of your business. In this case you will likely find it possible to fund a larger loan, or to receive a lower interest rate for your second loan.
The on-time repayment rate of all installments that have been due is displayed in your loan profile page, and prospective lenders use this as a basis for evaluating any loan applications that you post.
In addition, all lenders who participated in funding the loan post a “feedback rating” on their lending experience to the Mytrustin website. The feedback rating can be either Positive, Neutral, or Negative. Each borrower's profile displays his or her feedback rating as two numbers: the first is the percentage of all feedback ratings that are positive, and the second is the total number of feedback ratings given so far. For example, a borrower that has received 18 positive scores out of 20 total feedback ratings would display the score 90% positive (20). Lenders in the United States and Europe are accustomed to using this feedback rating system for financial transactions with unknown individuals over the Internet. It allows them to assign higher levels of trust to individuals who have already established an extensive history of similar transaction (as demonstrated by the high total number of feedback ratings), with a consistently high degree of customer satisfaction (as demonstrated by the high percentage of positive feedback ratings).
Mytrustin lenders generally assign positive feedback ratings to borrowers who repay loans on time, and also engage lenders by posting frequent, interesting messages and business updates on the Mytrustin website.
In addition, all lenders who participated in funding the loan post a “feedback rating” on their lending experience to the Mytrustin website. The feedback rating can be either Positive, Neutral, or Negative. Each borrower's profile displays his or her feedback rating as two numbers: the first is the percentage of all feedback ratings that are positive, and the second is the total number of feedback ratings given so far. For example, a borrower that has received 18 positive scores out of 20 total feedback ratings would display the score 90% positive (20). Lenders in the United States and Europe are accustomed to using this feedback rating system for financial transactions with unknown individuals over the Internet. It allows them to assign higher levels of trust to individuals who have already established an extensive history of similar transaction (as demonstrated by the high total number of feedback ratings), with a consistently high degree of customer satisfaction (as demonstrated by the high percentage of positive feedback ratings).
Mytrustin lenders generally assign positive feedback ratings to borrowers who repay loans on time, and also engage lenders by posting frequent, interesting messages and business updates on the Mytrustin website.
Each borrower's profile page contains a comment forum, in which the borrower as well as registered Mytrustin lenders may post text messages and photos. Borrowers and lenders may use this forum to ask and respond to questions, share information and news about the progress of the business and get to know one another. Lenders highly value the chance to communicate directly with entrepreneurs whose loans they have funded or are considering funding, and borrowers are encouraged to post comments in the forum as often as possible.
First, currency exchange rates may have changed since the loan was originally requested. Mytrustin converts all funding amounts between local currency and Indian Rupees using the international exchange rates posted on www.oanda.com. We update the website exchange rates on the first day of each month. If a loan application is posted in September, it was converted to Indian Rupees for fundraising using the September 1 exchange rate. If that same loan is disbursed in October, it is converted back from the Indian Rupee amount raised to Kenya Shillings using the October 1 exchange rate.
Second, a new borrower registration fee is paid upon disbursement of first-time loans. This covers the cost of the borrower verification needed to activate a new borrower account. This fee is deducted from the disbursement amount so that it does not need to be paid separately by the borrower.
Examples: A loan funded on our website at INR 779 will be converted to Kenyan Shillings (KSH) using the oanda.com rate at October 1, which was KES 77.1494 to one dollar. INR 779 multiplied by 77.1494 is KSH 60,100. From this we deduct the new borrower registration fee of KSH 1,000, yielding a net transfer amount of KSH 59,100.
Second, a new borrower registration fee is paid upon disbursement of first-time loans. This covers the cost of the borrower verification needed to activate a new borrower account. This fee is deducted from the disbursement amount so that it does not need to be paid separately by the borrower.
Examples: A loan funded on our website at INR 779 will be converted to Kenyan Shillings (KSH) using the oanda.com rate at October 1, which was KES 77.1494 to one dollar. INR 779 multiplied by 77.1494 is KSH 60,100. From this we deduct the new borrower registration fee of KSH 1,000, yielding a net transfer amount of KSH 59,100.
A Volunteer Mentor is an experienced Mytrustin member in good standing who volunteers his or her time to assist other members to interact with the Mytrustin website and community. Volunteer Mentors receive credit limit increases commensurate with the repayment performance of the members who are assigned to them, but are not otherwise compensated for their services.
Mytrustin does not authorize any person to collect money on its behalf. All payments to Mytrustin should be deposited directly into the account listed in the "Repayment Schedule" page of your Mytrustin member account.
If any person claims to be collecting payments on behalf of Mytrustin, do not give it to them. Instead, please send an email with that person's name and telephone number (if known) to us at connect@mytrustin.com. We will work with you to report the fraud to the local police.
If any person claims to be collecting payments on behalf of Mytrustin, do not give it to them. Instead, please send an email with that person's name and telephone number (if known) to us at connect@mytrustin.com. We will work with you to report the fraud to the local police.
We request that you do not invite or help non internet users to join Mytrustin, because we have learned with experience that it is very hard for individuals who do not personally use our website to thoroughly understand and participate successfully in our community over the long term.
You may contact the Volunteer Mentor whose phone number is displayed in your Mytrustin account.
Important Legal Notice
Mytrustin is a nonprofit organization engaged in the facilitation of microfinance lending to low-income entrepreneurs in developing countries. Mytrustin's primary purpose is to provide financial aid in the form of loans. Mytrustin believes that its lending model fosters a sense of responsibility and success for borrowers who repay their loans. The principal purpose of Mytrustin's lenders in funding loans is to improve the lives of these entrepreneurs, and not to make a profitable financial investment. Lending to entrepreneurs through Mytrustin involves a meaningful risk of loss of your principal lent. In addition, you are very likely to lose money in real terms on any loan you fund, even if it is repaid by the borrower, as a result of currency exchange rate changes, PayPal fees applied to uploading credit to your lender account, inflation and other factors affecting the value of principal and interest payments made by a borrower. Accordingly, we recommend that you consider lending through Mytrustin to be a philanthropic activity, and you should not lend more money through Mytrustin than you are prepared to lose.
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