Lendico, an online peer-to-peer banking service, says it has achieved the milestone of R3 billion in loan demands globally.
The site, which launched in South Africa in April, where it is backed by Africa Internet Holding (AIH), is also present in Spain, Poland, Austria and Germany.
AIH is an e-commerce development platform supported by Rocket Internet, Millicom International and MTN and includes the likes of JUMIA, hellofood, Lamudi, Zando, and Easy Taxi in its stable.
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 inquiries worth over R3 billion.
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, it said.
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 a rate.
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.
Laurens Pohl, MD for Lendico South Africa, said: “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.”