The online peer-to-peer banking service Lendico, which launched in South Africa less than four months ago, has just reached the milestone of R 3 billion in loan demands globally. First launched 6 months ago in Germany, Lendico is now present in five countries and counts over 50,000 registered users.
Lendico, the online peer-to-peer banking service available in Europe and Africa, has just reached the milestone of R 3 billion in loan demands globally. The site, which launched less than 4 months ago in South Africa, where it is backed by Africa Internet Holding (AIH), is also present in Spain, Poland, Austria and Germany.
Six months after it was first launched in Germany, Lendico is now present in five countries, 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 on lendico.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.
By 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.”
