Frequently Asked Questions
- What is the difference between Zidisha and Kiva?
- Kiva works through local microfinance institutions, which charge interest and engage in debt collection to maintain profitability. Zidisha connects you directly to the entrepreneurs, and does not charge any interest or engage debt collectors. On Kiva you lend money and are repaid. On Zidisha you donate: you are not repaid, and the entrepreneur pays your gift forward by funding the next entrepreneur.
- Is Zidisha cheaper than Kiva for the entrepreneur?
- Zidisha charges entrepreneurs a 5% service fee to cover the cost of transferring funds, and uses no local intermediaries. Kiva loans are 0% interest from Kiva, but most are issued through local field partners that charge their own interest, so the real cost to a Kiva borrower is often higher, averaging around 40%.
- Do I get repaid when I fund a Zidisha entrepreneur?
- No. Instead of repaying you, the entrepreneur pays it forward to fund another entrepreneur on the platform, so your gift keeps creating impact over time.
- How do I track the impact of my funds over time?
- Entrepreneurs are asked to share updates, photos and videos with their backers throughout the project period and upon repayment. In addition, the Your Impact page will track the follow-on projects funded by the entrepreneurs you backed, so that you can see your impact continue to grow over time.
- Who should use Kiva instead of Zidisha?
- People who want their funds repaid so they can re-lend the same money themselves should use Kiva. Zidisha is designed for donors who are comfortable giving, rather than lending, in exchange for a lower-cost and more humane model.
- What happens if an entrepreneur can't repay?
- Zidisha does not use debt collectors and does not pressure, seize collateral, or harass entrepreneurs who cannot repay. The model relies on a careful vetting process and direct relationships rather than enforcement, which makes it more humane than traditional microfinance.
