Are you stuck financially without any idea how to pull through? Don’t worry, you can find help in the form of a quick online loan. There are several loan apps in Kenya, which allow you to secure quick and sometimes even unsecured loans. With these loans, you can be able to fund emergency expenses, acquire funding for your business, or cater for any other personal or business expense you might have. One of these online services you can use to get quick cash is the Zidisha loan app.
Zidisha is a leading loan app in Kenya that offers peer to peer lending service. With this service, borrowers in Kenya (and select countries in Africa) can access credit from international lenders. Here is all the information about how the service works, from downloading the app, applying for credit, and repayment methods and terms.
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Zidisha loan Android app
To download and install Zidisha for Android:
- On your Android smartphone, open the Google Play store app. You can also visit play.google.com directly from your browser.
- Once you’ve opened Google Play store, search for Zidisha and click on the first result that shows up. If you are using a browser, go here to access the app directly on the Google Play store.
- Tap Install to add the app to your device
- Once the app has installed, you can now open and register for the services provided. The installation and usage guides offered later in this post will come in handy.
Zidisha loan app for iPhone
Unfortunately, Zidisha loan app is not available for iPhones and other iOS mobile devices in the Apple app store. However, you can still access the service through the Zidisha web service – where you can create a Zidisha profile, apply for credit, and receive funding from lenders. Even if you are using this service, don’t forget that you still need an active M-Pesa account to receive the money once your proposal has been funded.
How does Zidisha loan app work?
Zidisha is a non-profit peer to peer lending platform that was established in 2009. Unlike traditional lending from banks and even other online lending services, Zidisha funds come from independent lenders instead of the organisation. Therefore, the service only connects the borrowers to the lenders – hence the name peer to peer lending – and facilitates disbursement and repayment of the money borrowed.
READ ALSO: List of credit apps in Kenya
Zidisha service is open to everyone (in the countries it operates, including Kenya) provided you meet the registration requirements which are:
- Be employed or running a business – a source of income that will ensure you honour the repayments
- Have an active Facebook account
- Have a good credit history – the service uses local credit bureaus to check the credit history of borrowers
- Have an active Safaricom mobile line that is registered under your name (for Kenya)
- Have a national Identity card (for Kenya)
If you have met these requirements, you can download the Zidisha app to your phone and proceed to apply for credit. The loan application is basically a proposal, which you (the borrower) post explaining how much money you need, the reason you want the funds, your preferred repayment terms, and other details.
When the proposal is published, it becomes available to the lenders, who can then decide to fund the loan. A lender can fund the full amount requested, or part of it (starting from $1). The proposal stays up until it is fully funded or it expires. If it is funded completely, the money is disbursed (after you have confirmed the acceptance of the credit). Disbursement in Kenya is through M-Pesa. If the proposal is not fully funded when the proposal expires, the amount financed is reimbursed to the lender(s) – you can then try applying again.
Zidisha loans carry a service fee of 5%, which is deducted before the money is disbursed. They also come with credit risk payment, which is used to cover the lenders’ money in case of defaulting in payment. The credit risk payment ranges from 5% to 30% of the amount requested – it decreases over time when you make timely repayments.
Aside from the above fees, the service also asks for a premium membership fee that is paid only once. The fee allows borrowers access to higher credit limits – thus higher loan amounts. In Kenya, the fee is currently at KES 1,000.
Once you receive your loan, you can start or fund your venture and then start repaying the money. Once you have cleared the first amount you borrowed, you can request another one and so on. Like most lending services, the amount accessible increases as you build a good history – up to a maximum of USD 10,000.
How to use Zidisha loan app
Using the Zidisha loan app is quite easy. Once you install the app on your phone, follow these steps to start using the service:
- Launch the app on your phone
- On the start screen of the app, click on “Continue with Facebook” and then login with your Facebook account details
- Once logged in, agree to the legal contract
- Pay the premium membership fee
- Complete your profile – enter your personal information, choose your country, and provide any other asked information.
- Apply for your first credit on the app by following the steps provided. Make sure to provide a valid reason for a loan to stand a change of having your goal met.
Zidisha loan repayment
Zidisha repayment is based on your preferred terms, which you select during the application process. You can choose a monthly or weekly repayment period or choose to pay in instalment amounts. When your proposal is funded, and you confirm acceptance, you and the lender(s) basically enter a binding agreement based on these terms. As a result, you must repay each instalment before it becomes due, failure to which enters you into a bad credit history standing.
The repayment instructions – loan amount, amount to be paid, amount remaining, and repayment method – are usually sent through email when the money is disbursed. They are also available on loan screen section (in the app) or Repayment Instructions page (on the web service). In Kenya, you can repay your loan through M-Pesa using the PayBill service – PayBill No: 600201 and Account NO: mobile number (Safaricom number used to register your Zidisha account).
The good thing about Zidisha is that repayment is very favourable since it is based on your chosen schedule. You can also make earlier payments, which will allow you to access another one. However, you should note that loans with higher a minimum holding period – length of time before you can repay it – to qualify for a large amount next time.
On the other hand, if you are unable to make a payment for a due instalment, you can modify your repayment schedule (amount only) to meet your current financial ability. Doing this allows you to remain in good standing and retain your current borrowing limit.
Sometimes, you might find yourself in financial difficulty with no clear way out. However, when you download Zidisha loan app, you can enjoy an easy way to access financing. The app allows you to access loans from international lenders, which you can then use to fund your business and secure your financial future. On top of that, if you repay your loan on time, you can access another one and continue increasing your borrowing limit when you make timely payments.
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