In today’s article, we are going to discuss in details Zidisha loans in Kenya. We will into how it works and why it is making a name for itself in the industry while compared to competitors.
In this article we will discuss:
- What is Zidisha Loans in Kenya
- How Zidisha works
- How to make it work for you as a lender
Join me as we delve into details below
What is Zidisha Loans in Kenya
Zidisha is an online platform that directly connects borrowers with lenders. As a result, entrepreneurs are able to grow their businesses without worry about where they will get funds for capital.
What’s more, is that the lenders can directly see the impact the funds they have lent are changing lives. Moreover, a lender can offer advice as there is direct communication between the two parties and therefore eliminating the need for middlemen.
Zidisha was founded in 2008 by Julia Kurnia and since it started its operations, it has funded over 253,011 projects.
- How then does Zidisha work?
- Entrepreneurs apply – The first step is to sign up via the Zidisha website. One must make sure they have a Safaricom registered line, a national ID and 5 minutes of internet time.
- Pay a premium membership amount of KES 1000.
- After application, thousands of lenders around the world will choose to lend her the money she requires.
- You will receive this money sent directly to your M-PESA account or bank depending on the amounts.
- Once you have received the cash and used it. Repayment time comes and its time to pay the loan back
- The amount repaid is pooled together and lent to another entrepreneur in need of cash.
Please note repayment is made in weekly installments.
How to make it work for you as a lender
If you are passionate about giving back to the community and empowering tomorrow’s team, then here is how to go about it.
- The first step is to browse available loan opportunities from their Zidisha Website.
- From here, contribute the loan amounts you would like to lend
- After the loan is fully funded, the funds will be sent to the entrepreneur and you will be able to talk to them via the dialogue tab in Zidisha.
- Since repayments are done weekly, the funds will be deposited back to your account and you can use it to fund another entrepreneur.
- The minimum amount you can lend is a dollar
How much does it cost entrepreneurs to borrow from Zidisha?
A service fee of 10% as well as a risk charge between 5% to 25% will be the total cost incurred by entrepreneurs to borrow from Zidisha.
Zidisha is available in Kenya, Nigeria, Ghana, Zambia, and Indonesia.