Traditional microfinance institutions must often charge borrowers interest rates of over 30% just to cover their operating costs.
Zidisha’s direct person-to-person lending model is dramatically more efficient. In the last quarter (October – December 2012), our members funded $252,666 worth of loans – and our operating costs were just 8.9% of the value of the loans funded through our platform.
Here is a breakdown of our costs over the October – December 2012 quarter:
|PayPal / Bank Fees||$6,514|
|Phone / Skype||$220|
|Background Checks for New Borrowers||$1,427|
|Website Maintenance and Development||$2,961|
|Payroll / Taxes / Health Insurance||$11,343|
Our members finance these expenses through program fees and optional donations. Here is a breakdown of the revenue we raised in October – December 2012:
|Borrower Registration Fees||$5,888|
|Borrower Service Fees||$3,683|
|Lender PayPal Fees||$5,696|
What do you think about our use of funds? Would you like to know more about our revenue or expenditures? Please leave a comment to share your perspective.