Our largest provider, Gatsby Microfinance Ltd (GMFL) has signed a new risk share agreement with MYC4. This means that they are now covering 100 % on all their loans instead of 50 %. With the new agreement, GMFL joins our other active providers, Micro Africa Ltd, Tujijenge Tanzania, KEEF, Tujijenge Uganda, BELITA, and Premier Resource Consulting, who have already signed for 100 % coverage.
Risk share coverage entails that when a loan defaults on the platform, the provider has committed to cover a certain percentage of the outstanding principal out of a risk sharing fund. It is one of the parameters in MYC4’s star rating which you can read more about here: Risk Rating.