Jose, Seven Percent discussed on Market Wrap woth Moe Ansari

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That on for them for themselves and we'll just sort of the low server story in that regard you know because we do that our default rate is point seven percent which is in our industry is extremely low in the microfinance world you know that the typical default his fourteen to fifty percents and so the point seven percent is significant is happening and so it's a one thing that's happening is know we're basically acknowledging the social trust they know that that comes with this communities and they're really trusting us nonprofit dr services loan and so because of all of that you know everybody's sort of falls through with a commitment to paying dina japan that the lows forward and how much scepticism if any did you encounter jose when you went to the credit bureaus and said we've got a little bit of a different take here did they immediately embrace it or did you have to sell them on it you know one of the things is that this activity there's a lot of people that benefit from it you know one banks financial institutions benefit from this because we're expanding the pool of eligible bars for them and so they wanna see more even the credit bureaus they actually benefit from this because we essentially you know bringing light to an activity that was invisible for them and we're standardizing it took so that actually fits into the credit bureau you know system and so so there wasn't any any pushback at all i mean we had to sort of formalize it right so we had to come up with a promissory note in every legal document that clearly dictated exactly what was happening and in through that promissory note you know we we made this as a former loan for that it could be reported to the credit bureaus so there really wasn't auto pushback from them i mean really a conversation intellectual conversation with a lot of lawyers they didn't understand what was happening but how to clarify except in any great detail you know this this was bonafide financial activity you know that maybe they didn't look exactly like the way we traditionally do it you know but but it but it still was bonafide financial activities.

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