Zidisha Loans in Kenya & Everything about Them

Simon Mwangi

In today’s article, we will discuss Zidisha loans in detail in Kenya. We will examine how it works and why it is making a name for itself in the industry compared to competitors.

In this article, we will discuss:

  • What are Zidisha Loans in Kenya
  • How Zidisha works
  • How to make it work for you as a lender

Join me as we delve into the details below

What are Zidisha Loans in Kenya

Zidisha is an online platform that directly connects borrowers with lenders. As a result, entrepreneurs can grow their businesses without worrying about where they will get funds for capital.

Moreover, the lenders can directly see the impact of the funds they have lent in changing lives.

Moreover, a lender can offer advice through direct communication between the two parties, eliminating the need for intermediaries.

Zidisha was founded in 2008 by Julia Kurnia, and since it started its operations, it has funded over 253,011 projects.

Also, read Where to Get Cheapest Bank Loans in Kenya.

How then does Zidisha work?

  1. Entrepreneurs apply – The first step is to sign up via the Zidisha website. One must ensure they have a Safaricom registered line, a national ID, and 5 minutes of internet time.
  2. Pay a premium membership amount of KES 1000.
  3. After application, thousands of lenders worldwide will choose to lend her the money she requires.
  4. Depending on the amounts, you will receive this money sent directly to your M-PESA account or bank.
  5. Once you have received the cash and used it, repayment time comes, and it’s time to pay the loan back.
  6. 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, here is how to go about it.

  1. The first step is to browse available loan opportunities from their Zidisha Website.
  2. From here, contribute the loan amounts you would like to lend
  3. After the loan is fully funded, they will send the funds to the entrepreneur, and you will be able to talk to them via the dialogue tab in Zidisha.
  4. Since repayments are made weekly, the funds will be deposited into your account, and you can use them to fund another entrepreneur.
  5. The minimum amount you can lend is a dollar.

How much does it cost entrepreneurs to borrow from Zidisha?

A service fee of 10% and 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.

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As a freelance writer with a background in banking and accounting, Simon has the financial know-how to produce quality content on various topics. His experience gives him a strong foundation in understanding complex financial concepts and communicating them in an easy-to-understand way.