After depositing the $428 she can borrow often and without interest in the future. Bankrolling Zidisha / the fund. And on this transaction only to her disadvant

After depositing the $428 she can borrow often and without interest in the future. Bankrolling Zidisha / the fund. And on this transaction only to her disadvantage. She's leveraging her shops supplies while she had the money! However she still pays a 5% fee (in this case, for a 3 month loan, 21.5% annual). Obviously the fee is interest as well. The lender gets no return, but a tax deductibility. It's a clever way of building a massive fund. My problem with most P2P (micro-)lending is that its risk management is often lacking and that interest rates do not adequately reflect risks. A zero percent nominal rate is bogus for a Nairobi shop owner. And 20+% fees excessive, especially when someone has to pay $400+ to get in.