At Jika Side Microcredit, we understand the importance of providing our investors with peace of mind and ensuring the security of their investments. Therefore, we offer a comprehensive Payment Guarantee program to protect our investors against potential defaults and minimize the associated risks.
Our Payment Guarantee program works as follows:
Before extending microcredit to borrowers, we conduct thorough risk assessments and due diligence to evaluate their creditworthiness. We utilize various criteria, such as financial history, business plans, and repayment capacity, to assess the viability of each loan application.
We maintain a well-diversified loan portfolio by disbursing loans to a wide range of borrowers across different industries and regions. This diversification strategy helps mitigate the risk of concentrated defaults and ensures the stability of our overall loan portfolio.
As a precautionary measure, we allocate a portion of our earnings towards a Loan Loss Provision fund. This fund serves as a financial buffer to cover any potential defaults and ensures that our investors' principal amounts are safeguarded.
In certain cases, we require collateral or guarantees from borrowers to secure the loans. Collateral can be in the form of assets such as property or equipment, while guarantees may involve co-signers or third-party entities providing assurance of repayment. These additional security measures further protect the investments of our stakeholders
In the event of any delayed or missed payments, we have a dedicated team responsible for collection and loan recovery. Our team employs proactive measures to engage borrowers, offer support, and explore potential solutions to address any repayment challenges. We strive to maximize the recovery of outstanding loan amounts to minimize the impact on our investors
Through our robust Payment Guarantee program, we aim to provide a secure investment environment for our stakeholders. While no investment is entirely risk-free, we continuously monitor our loan portfolio and take appropriate measures to mitigate potential risks and ensure timely repayments. Please note that the specific terms and conditions of our Payment Guarantee program may vary. For detailed information about our Payment Guarantee policy, we encourage you to contact our investment team. They will be happy to address any questions or concerns you may have and provide you with a comprehensive understanding of our commitment to protecting your investment with Jika Side Microcredit
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