Lenders are encouraged to charge an interest rate they find acceptable, but the average interest rate is lower than the default rate... so that means lenders (as a whole) are losing money! This would not be a particularly good investment, but it may be an excellent way to do donations.
- the lenders who select more reliable recipients and those who charge more will make more income, so I am sure many lenders are actually making a profit even if the sum total of the loans by Zidisha is not.
