|
The administration fee is calculated as 10% of your loan basket with a minimum of $5 and a maximum of $25. Good Return has a commitment to sustainability and transparency. By charging a separate administration fee we can assure you that your loan funds will not be used to fund administrative costs.
If you choose to make your loan a donation up-front, where loan repayments are donated to Good Return, you will not be charged an administration fee.
When does a loan expire on the Good Return website?
Typically a loan will only remain on the Good Return website for 30 days from the date that it is posted. If a loan has not attracted any funding during this period then it will be removed from the Good Return website and our field partner will need to fund this loan with an alternative funding source (Good Return has a policy of only funding up to 30% of a field partner’s portfolio to reduce reliance on a single funding source).
If the loan has attracted partial funding during this period then the loan amount will be reduced to the amount that has been funded and the remainder will be made up by the field partner, using an alternative funding source.
How does loan expiration affect borrowers?
In the event that a loan expires before it attracts any or all funding then the relevant Good Return field partner will seek to use alternative funding sources to complete the loan.
How will I receive loan repayments?
When your selected borrower repays the total sum of the loan, the full amount repaid will be credited to your Good Return account together with a receipt. You then have the choice to re-lend the funds, donate the funds to a Good Return project or to withdraw the funds to your PayPal account.
Who is responsible for default on a loan?
The borrower is responsible for repaying a loan and the microfinance partner is responsible for collecting repayments. If a repayment is not able to be collected then the lender bears the cost. Historically the incidence of default on microfinance loans is low and Good Return makes every effort in conjunction with our field partners to emphasise the principles of good loan management.
When will a loan be considered delinquent?
A loan will be considered by Good Return to be delinquent if any repayment is more than 30 days late. We record and track the delinquency status of all of our field partners, for the information of Good Return lenders. Just because a loan is delinquent does not mean that it will not be repaid, just that it is late.
Is there a limit to individual loan sizes? And how is this established?
Individual loan size limits are set by Good Return in order to ensure we maintain a pro-poor focus. However, the ability to fund multiple loans enables you to loan as much, or as little as you choose.
Can I donate my loan?
You have two options for making your loan a donation. You can make your loan a donation up front at the time of making the loan, or later when your loan funds have been repaid and are available for your use. In both cases donations will be used to fund our work with field partners and borrowers (we provide a range of training support to partners and borrowers).
All donations are 100% tax deductible and official tax receipts will be issued. We greatly appreciate the generosity of all who donate to support the Good Return cause.
Please note that tax deductions are only available to individuals registered as Australian Residents for Taxation Purposes.
Can I lend if I do not live in Australia?
Good Return is a global online portal and we welcome lenders from all over the world.
When is a loan considered to be written off?
A loan will be considered to be written off if the loan is more than six months late and/or all efforts have been made to recoup funds from the borrower and collection of the outstanding amount is considered highly unlikely. In some cases this may be due to a disaster or the borrower falling ill.
Why is the loan disbursement date in the past?
Given the nature of the Good Return website it can take anywhere up to 30 days for the loan to be funded. As each of the borrowers on the Good Return website have real and often immediate borrowing needs it is not appropriate to ask the field partner to delay the disbursement of a loan to a person in need until the Good Return funds are received.
After all, it is the borrowers that Good Return is ultimately designed to help. In order to resolve this issue, the field partner may use a temporary source of funding to finance the loan until your loan funds have reached them. Rest assured that without your funding commitment the field partner would not be able to achieve the same level of outreach to poor borrowers
(Top)
Interest
Does Good Return charge any interest to clients or partners?
Good Return does not charge any interest on loans to its field partners or their clients. The time required to upload and report on borrower activity is a cost that Good Return field partners cover. By lowering the cost to partners, we enable them to reach poorer and more marginalised borrowers.
Do field partners charge interest to Good Return clients?
Yes, our field partners typically charge a competitive rate of interest to their clients. In order to sustainably provide financial services to poor clients field partners need to charge a fee for their service. The interest charged by Good Return field partners is used to cover their operating expenses, Good Return does not collect any interest from its partners.
Why do the rates of interest that some partners charge seem so high?
The cost of providing financial services in developing countries is typically very high. Borrowers are often spread across large and remote geographical areas, making the costs of service provision very high. Our partners often send their field officers out to remote villages to provide services at the borrowers’ doorstep. Obviously the cost to a microfinance institution of lending $10,000 (e.g. 100 X $100 loans) is far greater than that for a bank (e.g. 1 x $10,000 loan). As such, interest rates should not be compared to banks that provide large loans to urban clients, but rather with what the borrower would otherwise have to pay. Moneylenders are the main alternative, and across Asia moneylenders typically charge 20% per month, or more.
Developing countries typically have high inflation rates which need to be factored into the interest rates that financial institutions charge. For example an interest rate of 20% per annum in a country where inflation was 22% per annum would not cover costs. The interest rate charged by the institution would need to be greater than 22% in order to simply cover the cost of inflation, let alone other operational costs.
Will I receive interest on my loan?
No, loans made via the Good Return website do not earn any interest.
(Top)
The Borrower
How does the money get to the borrower?
At the end of each calendar month, Good Return calculates the amount of funds that have been raised in loans for each field partner. It then sends this amount, less any reported repayments during the same period, to the field partner by bank transfer. The Good Return field partner is then responsible for disbursing the funds to the intended borrower through their established channels.
How can I be sure of the integrity of borrowers on the Good Return website?
Good Return takes the integrity of the information that appears on our website very seriously. Whilst we are unable to verify the details of all borrowers, we have conducted a thorough assessment of the credibility of all of our partners and seek out partners who share our commitment to transparency. Our initial due diligence and training visits to all field partners helps to ensure this mutual commitment, and we maintain a close working relationship.
How are borrowers selected?
Borrowers are selected and approved by our field partners. Each of our field partners has an existing microfinance operation under which they lend to low-income individuals. Each field partner has their own unique lending criteria that provide a basis for the approval of loan requests. Through their partnership with Good Return some of the field partners’ borrowers will be funded through Good Return. This enables the field partner to expand their provision of services to more poor borrowers.
(Top)
Money Matters
Are there any audits of the use of funds?
An annual monitoring visit is undertaken for each field partner. A part of this monitoring visit includes an audit of a random sample of loan clients to ensure funds were lent and repaid in accordance with the field partner’s information, and to assess the effectiveness and impact of the loans.
Why does Good Return lend in the local currency of the borrower?
Our field partners and the people they lend to operate in their own local currency. They need funds in their own currency. If Good Return were to lend to them in AUD or USD then they would have to take on the exchange rate risk. This presents both a risk and a cost that they often cannot afford, or may not legally be permitted to take. In order to reduce both the costs and risks to local partners and borrowers, Good Return lends in the local currency of the borrower, and the Australian lender assumes the exchange risk.
Who is responsible for exchange rate fluctuation?
Exchange rate fluctuations are a necessary function of international lending and borrowing facilities. Any gains or losses on exchange rate fluctuations rest entirely with our lenders. This means that if the Australian Dollar appreciates against the local currency used by your borrower, then you will likely lose some amount in exchange losses, since the local currency amount repaid will buy fewer Australian dollars than you originally lent. On the other hand, if the Australian Dollar depreciates against the local currency used by your borrower then you will likely receive an additional amount in exchange gains. A summary will be provided to you at the end of your loan.
(Top)
Taxation
Can I get a tax-deductible receipt?
This depends on the method you choose to fund a loan. A tax-deductible receipt is available to lenders who make their loan as a donation up front. If your loan is not selected as a donation up front you will not immediately be eligible for a tax-deductible receipt. However, if you opt to donate the funds to Good Return after they have been repaid, this donation is tax-deductible and an official tax deductible receipt will be issued.
Please note that tax deductions are only available to individuals registered as Australian Residents for Taxation Purposes.
Do I need to report my loans to the taxation office?
Good Return cannot provide tax advice. If you require tax advice, then it should be sought from a professional accountant/tax specialist. All donations receipted by Good Return are tax deductible.
If my loan is written off can I claim the loss on my tax?
Good Return cannot provide tax advice. If you require tax advice then it should be sought from a professional accountant/tax specialist. Good Return is not able to issue a tax deductible donation receipt for losses on loans after those losses have been incurred. However, if you elect to make your loan a donation up front then the full amount donated is tax deductible, regardless of any future losses on the loan.
What is PayPal?
PayPal, the trusted leader in online payments, enables buyers and businesses to send and receive money online. PayPal has over 100 million member accounts in 190 countries and regions. It's accepted by merchants everywhere, both on and off eBay.
Is it safe to use?
PayPal helps protect your credit card information with industry-leading security and fraud prevention systems. When you use PayPal, your financial information is never shared with the merchant.
Why use PayPal?
-
Make purchases or send money with PayPal – it’s free
-
Shop and pay conveniently by saving your information with PayPal
-
PayPal is accepted by millions of businesses worldwide and is the preferred payment method on eBay
| 
