How does Zidisha handle compliance with SEC regulations around issuing securities? I know that both LendingClub and Prosper had to go through a lengthy process to offer their notes with proper documentation and disclosures.
> We believe the reason is that, while allowing higher interest improved the financial attraction of lending with Zidisha, it simultaneously weakened its humanitarian appeal.<p>As someone who donates money to 501(c)3s that are focused on the developing world and who also dabbles in P2P lending, I see a disconnect. There's nothing magical about a 10% APR figure. Maybe it feels better to some folks, but for me personally at least, if I'm looking for "humanitarian appeal", I would far prefer to donate money than lend.<p>The blog states "higher interest rates do not seem to have resulted in higher levels of loan funding overall." This is an interesting statement. It could mean one of two things: Zidisha lenders are not actually interested in lending and are going to allocate capital regardless of risk, or the higher interest rates aren't high enough to attract capital to the theoretically riskiest borrowers. Without more data answering the question "Why?", it's premature to use this as justification for capping interest rates.
Thumbs up for clarity. There's some inherent complexity to having different rates borrows pay vs what lenders receive, but having interest broken up by both flat rate and APR and posting the registration fee in the same place makes it easier to understand.