It seems that in average one could expect a 4.2% interest rate (4.6% avg at a 8% faulty). I am wondering if a higher interest might be more beneficial?
The optimal interest rate is one of the most frequently debated questions among Zidisha lenders.
Zidisha doesn't set interest rates. Our platform allows borrowers to offer up to 25% interest, and lenders may fund at any rate they choose, up to the maximum offered by the borrower.
The borrowers who have the highest on-time repayment scores are displayed first in the "Lend" page, and these are generally able to raise loans at the lowest rates. Newcomers, or borrowers with less than stellar on-time repayment histories, usually need to offer higher rates in order to have their loans funded.