Terms of Use and Privacy Policy


Last updated: December 10, 2016

Via our website, www.zidisha.org, Zidisha matches its funding participants (to whom we refer as "lenders") with prospective borrowers, who are small business entrepreneurs in low-income countries. Zidisha works to improve access to affordable business financing for disadvantaged entrepreneurs, while making available information on borrowers' businesses and credit histories to allow each lender to choose which entrepreneurs receive the funds that lender provides.

By using the www.zidisha.org website or forum, you hereby understand and agree to the following:

Release of liability

Zidisha is a nonprofit organization responsible only for maintaining the www.zidisha.org website. Zidisha is not a financial institution, and is not responsible for assessing credit risk of borrowers, enforcing repayment, or guaranteeing repayment of loans posted on its website. Lenders participate in the loans provided to Zidisha borrowers at the lenders' own risk, based on their own assessment of prospective borrowers' profiles posted on the site.

Zidisha is not a bank or other financial institution or investment adviser, broker or dealer. Zidisha makes no guarantee or representation that funds lent through its website will be repaid to lenders, regardless of whether the loans financed with lender funds are repaid to Zidisha. Any cash payouts are promotional gifts offered solely at Zidisha's discretion.

Zidisha is not responsible or liable for any incorrect information posted on its website, or for losses or damages resulting from such information. Other than repayment performance of prior Zidisha loans, neither Zidisha nor any other party has verified the information that borrowers post on Zidisha's website. Zidisha is not responsible for the accuracy of any such information.

Risk

The loans offered through Zidisha are unsecured and would be considered high risk by traditional financial institutions. In addition, Zidisha is under no obligation to return all or a portion of the funds provided by any lender. Accordingly, participating in loans provided by Zidisha is intended to be a philanthropic rather than an investment activity. Website users should lend only amounts that they can afford to lose in the case of borrower default.

Lenders accept the risk of loss in whole or in part of funds lent to Zidisha borrowers. Risks include but are not limited to political and economic instability, currency fluctuations, and the unpredictability inherent in entrepreneurial endeavors.

Loans posted for financing through the Zidisha website are unsecured and bear high risk of non-repayment. Zidisha is not responsible for any financial losses resulting from use of its website.

Loan amounts are fixed in local currency at the time of disbursement. Currency exchange rate fluctuations may cause reductions in the dollar values of the loans over the course of the repayment period, causing lenders to lose money even if the loan is fully repaid.

Repayment schedule modifications

Zidisha borrowers may modify their repayment schedules within the parameters set by Zidisha at the borrowers' own initiative, and without the consent of lenders.

Loan repayments

Upon receipt and identification of a loan repayment from a borrower, Zidisha will credit the repaid principal and interest to the accounts of the lenders who had funded the aforementioned loan. The lenders may then relend the credit to other borrowers, or request to withdraw the credit.

Tax reporting

Funds uploads to withdrawable lender accounts should not be treated as tax-deductible charitable contributions.

It is the responsibility of lenders to report and pay any applicable taxes on any cash payouts received from Zidisha.

Withdrawing funds

Lenders may only withdraw funds from their Zidisha accounts via PayPal. Lenders who are not able to receive PayPal transfers will not be able to withdraw funds from their lender accounts.

Inactive accounts

If a lender does not make any new loan or withdrawal request within sixty days after receiving a repayment credit, the account will be considered inactive and Zidisha will activate continuous relending of the available credit on the lender's behalf. A lender may deactivate continuous relending using the "Relending Preferences" page of his or her account, but this does not undo or prevent automated relending if the account becomes inactive.

Abandoned accounts

In the event that a lender does not log in to his or her account for over one year, Zidisha will attempt to contact the aforementioned lender using the email address registered with his or her lender account. If Zidisha does not receive a response from the lender within one month from the date of the first contact attempt, the account will be deemed abandoned, and the balance of lender funds that have been credited to that account will automatically convert to an unrestricted donation to Zidisha. Lenders whose expired accounts have converted to donations may reverse this conversion at any time by sending a written or email request to Zidisha. Upon receipt of such a request, Zidisha will credit the lender balance that had been converted to a donation back to the lender's account.

Acceptable content

Unsolicited advertising, offensive or discriminatory language, personal attacks or accusations, and other content that is harmful to our community is prohibited in the Zidisha website and forum.

Lenders are encouraged (but not required) to use their first or full names as display names. Display names that promote political, religious or otherwise partisan views are prohibited.

Posting unproven accusations or speculation that harms the reputation of any of our members is strictly prohibited.

Zidisha reserves the right, at its sole discretion, to remove content that violates this prohibition, and to close the accounts of users who post such content.

These Terms of Use

This Terms of Use Agreement is governed by the laws of the state of Virginia, USA. The Agreement will remain in effect as long as you use the Zidisha website, are participating in any outstanding loan or have any amount credited to your funded balance with Zidisha.

Zidisha reserves the right, at its sole discretion, to modify the website or to modify these Terms of Use, at any time and without prior notice. If we modify these Terms of Use, we will update the “Last Updated” date at the top of these Terms of Use. By continuing to access or use the website or our services after we have posted a modification on the website or on these Terms of Use, you are indicating that you agree to be bound by the modified Terms of Use. If the modified Terms of Use are not acceptable to you, your only recourse is to cease using the website and Zidisha services.

Important Note: Zidisha is a nonprofit organization engaged in the facilitation of microfinance lending to low-income entrepreneurs in developing countries. Zidisha's primary purpose is to provide financial aid in the form of loans. Zidisha believes that its lending model fosters a sense of responsibility and success for borrowers who repay their loans. The principal purpose of Zidisha's lenders in funding loans is to improve the lives of these entrepreneurs, and not to make a profitable financial investment. Lending to entrepreneurs through Zidisha involves a meaningful risk of loss of your principal lent. In addition, you are very likely to lose money in real terms on any loan you fund, even if it is repaid by the borrower, as a result of currency exchange rate changes, PayPal fees applied to uploading credit to your lender account, inflation and other factors affecting the value of principal and interest payments made by a borrower. Accordingly, we recommend that you consider lending through Zidisha to be a philanthropic activity, and you should not lend more money through Zidisha than you are prepared to lose.

Gift Card Terms of Use

1. A recipient may redeem a gift card by creating a free lending account, and entering the redemption code in the Transfer Funds page of the account. When redeemed, the full value of the gift card will be credited to the recipient’s lending account.

2. Impact Investment gift cards may only be redeemed into non-withdrawable donation lending accounts. Lending credit from the redemption of Impact Investment gift cards may only be used to fund loans, and cannot be withdrawn as cash.

3. It is the responsibility of the purchaser to exercise appropriate caution in safeguarding a gift card and its redemption code. Gift cards are non-refundable, and replacements cannot be issued for a gift card that is lost or redeemed by someone other than the intended recipient.

4. The utilization of gift cards is subject to the general Terms and Conditions governing use of the www.zidisha.org website.


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