David Ngene & Wei Chen: Mobile & Community

#10 Community

ZADISHA https://www.zidisha.org/

Zidisha is a nonprofit organization providing a Peer-to-Peer Microlending Service to connect individual lenders directly with microfinance entrepreneur borrower in low-income countries (Burkina Faso, Indonesia, Kenya and Senegal) without intermediaries.

WHY CHOOSE?

1.By lending to an entrepreneur, lenders are not only investing in the entrepreneur’s business, but are also investing in that borrower’s family and community.

2. If any Zidisha member is not completely satisfied with our performance, Zidisha will immediately refund 100% of the lender credit uploads, donations and service fees paid by that member.

3.Donations made to Zidisha are tax-deductible in the United States.

BORROWER

-QUALIFICATION-

Borrowers must go through a rigorous background check to ensure both the legitimacy of the business and the ability to repay the loan by contracting with local financial institutions and credit.

-BORROWING-

The borrowing process begins by applying. A potential borrower will be asked to provide background information on his/her business and financial history. Once approved, he/her will then be able to create a loan application on our website, describing your business and the purpose of the loan.

-COST-

The total cost to the borrower is the 5% transaction fee, plus the weighted average interest rate bid by lenders financing the loan.

The new borrower registration fee covers initial credit history confirmation costs, as well as orientation and training in the use of the Zidisha website. It is applied only to a borrower’s first loan, and only if the loan is funded.

-UNFUNDED-

If a loan is not fully funded by the expiration date, then funds that had been pledged are returned to lenders, and the applicant may start over with a new loan proposal.

LENDER

-LENDING-

Lenderssign up for a free membership on website. Once creating account, a lender can then browse listings of available loan opportunities, choosing one or more that the lender would like to fund. He/she can make a bid for any portion of the loan (including proposing his/her own interest rate).

Lenders in the US may deposit funds into their Zidisha accounts via e-check (ACH debit), check, bank transfer, or PayPal. Lenders outside of the US may upload funds via bank transfer or PayPal.

WHOLE PROCESS

1.A borrower logs into Zidisha and posts a loan request to help fund his/her business.

2.A lender selects an available loan and bids to provide all or part of the funding.

3.Lenders propose their own interest rate for the funds that they offer to loan.

4.100% of the lender’s loan is disbursed directly to the borrower’s business.

5.Lenders and borrowers can stay in touch on the impact of the loan.

6.Loans are repaid in monthly installments and can be reinvested immediately.

ABOUT RISK

Zidisha does not guarantee repayment of loans. However, ZIdisha attempt to decrease the likelihood of default by independently checking the borrowers’ credit histories and repayment performance before allowing them to raise loans through our site.

And if the borrower fails to repay for various reasons, if needed, Zidisha may request mediation from the local community leader who recommended the borrower to Zidisha. As a last resort, Zidisha may opt to pursue legal action following local regulations in each country.

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