As I said above, the major issues are (i) effective underwriting, and (ii) efficient operations.

The better you can distinguish good customers from bad (better data and better models), the less money you lose to people that don't pay back. The better your tools to serve customers, the more customers you can serve without needing to increase the size of your team.

By reducing costs, you can charge less, get more customers etc.

A non-profit would face exactly those same two challenges, just to break even. Not needing to make a profit would have a much much smaller impact on its ability to reduce prices, than the two factors I mention.