Zidisha, a nonprofit in the US, reports that it has facilitated approximately USD 50,000 in loans from 250 lenders to 80 low-income entrepreneurs in Kenya and Senegal as of 2011 . Zidisha facilitates loans to low-income, computer-literate entrepreneurs in developing countries.
Prior to borrowers posting their loan applications on the website, background checks such as third-party verification of borrowers’ credit histories with local lenders are performed to assess credit worthiness of applicants. As part of their applications, potential borrowers specify their desired loan amount and the maximum interest rate that they are willing to pay. Lenders then bid to fund portions of each loan at or below the applicant’s specified interest rate. The repayment performance of borrowers is tracked on the website through a rating system that is generated by “satisfaction scores” and comments posted by lenders.
As of 2011, Zidisha reports a 100 percent repayment rate .
By Medha Ravi, Research Associate
Zidisha is a nonprofit organization that was launched in 2009 in the US by Julia Kurney, a founding partner of Senegal Ecovillage Microfinance (SEM). Zidisha intermediates loans from individuals to entrepreneurs with credit histories in Senegal and Kenya. Lenders are able to browse listings written by the entrepreneurs themselves and then bid on interest rates with the entrepreneur able to select the lowest offered rate. As of 2011, Zidisha has facilitated approximately USD 50,000 in loans from 250 lenders to 80 low-income entrepreneurs in Kenya and Senegal. As of 2011, Zidisha reports a 100 percent repayment rate.
Sources and Additional Resources:
 Information submitted by Zidisha to MicroCapital
MicroCapital.org story, January 25, 2010, “MICROCAPITAL BRIEF: Julia Kurney, Founding Partner of Senegal Ecovillage Microfinance, Launches Zidisha.org, a Nonprofit Organization that Reportedly Allows Peer-to-Peer Microcredit Lending”, http://www.microcapital.org/microcapital-brief-julia-kurney-founding-partner-of-senegal-ecovillage-microfinance-launches-zidishaorg-a-nonprofit-organization-that-reportedly-allows-peer-to-peer-microcredit-lending/
MicroCapital Universe: Zidisha.org, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Zidisha.org
MicroCapital Universe: Senegal Ecovillage Microfinance (SEM), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Senegal+Ecovillage+Microfinance+%28SEM%29
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