Zidisha Inc. is a fairly new organization, but has been described as 'the evolution of microfinance'. As I read more about the organizations out there, I came to support Zidisha even more for the work it's doing.
For starters: How does nonprofit Peer-to-Peer microfinance with Zidisha work?
- Make an account on the website, and choose the amount you want to loan (via bank transfer or paypal)
- Read through the list of borrowers that have applied for a loan
- Choose who you want to loan to, and set the amount and interest rate for the loan (no higher than 6%). Click finish to send the money to them directly.
- Sit back and relax! The borrower will repay you over time back into your Zidisha account, which you can choose to reinvest in other business owners, or take out as a lump sum payment.
|A Zidisha Borrower showing off her business|
Why I like Zidisha better:
- NO ONE who runs Zidisha gets paid. Even the founder is a volunteer. Low costs=more money to the people who need them
- There is no institution acting as middleman (who usually will take a cut of the loans they distribute)
- You can interact with the borrowers online: ask questions, leave comments, and give feedback about your borrowers. Borrowers will often post updates, send pictures, and let everyone know how they are doing. Very cool.