Home Startups Lendico attracts US$285 m in loan demand globally

Lendico attracts US$285 m in loan demand globally

by Susan Mwenesi
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10171101_244634175728385_6680600628369510921_nOnline peer to peer banking service Lendico has attracted US$285 m (R 3 billion) globally) I demads for loans all over the world.

The site which is also available in Europe (Poland Austria, Germany and spain), launched in South Africa less than three months ago.

Lendico, counts more than 50,000 registered users and has received credit enquiries worth over 3 billion rand. With this strong demand, the Lendico team is growing and now comprises around 150 experts from the fields of finance, risk assessment and underwriting across two continents.

Lendico works by connecting borrowers and lenders to allow both sides to benefit from attractive conditions. Once prospective borrowers have created a loan project onlendico.co.za, Lendico analyses their credit worthiness and offers them extremely competitive rates. Investors can then compare all loan projects online and enter bids as low as R250. If a loan project gets fully funded, the borrower receives his or her loan and investors receive their respective principal and interest payments from the first month.

The site also allows investors to diversify their portfolio across several loan projects, thereby earning higher returns compared with similarly secure investments.

LENDICOBy removing the need for banks, Lendico saves costs which can then be passed on to customers. The present market environment is particularly favourable for credit marketplaces such as Lendico, since investors are suffering from low interest rates that are below the inflation rate. This means that the service’s high returns represent an increasingly attractive alternative to traditional banks.

Laurens Pohl, MD for Lendico South Africa, commented: “An increasing number of borrowers are breaking free of the high rates charges by bank and instead choosing a more favourable Lendico loan. We provide a secure and transparent loan marketplace, and offer great deals for both borrowers and lenders with no hidden fees or complicated paperwork. In future, we are confident that we can build on the achievements of the past few months and continue to help customers in South Africa save money in the loan market.”

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