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Lendico Launches in South Africa
Rivalling Banks Globally to Become the First Intercontinental Social Lending Company
- Lendico is the first market place for loans from one person to the next operating in Europe and Africa
- Own algorithm analyses credit risk in real time
- Africa Internet Holding (AIH), Africa's leading startup builder, announces the launch of their newest startup Lendico
- Lendico is fully licensed by the NCR
Africa Internet Holding (AIH), Africa's leading startup builder, now announced the launch of Lendico in South Africa. Lendico is the digital alternative to banks that enables investors to directly fund the loans of private individuals.
Launching in South Africa today, the NCR-approved Lendico marketplace now offers borrowers cheap loans and investors attractive returns on two continents. Lendico was launched in Germany in December 2013 - Spain, Poland and Austria followed. The idea of social lending is universal: People with money invest in the projects of people looking for funding. One party benefits from attractive returns, the other from cheap interest rates. Lendico is a win-win situation that functions all over the world: without bank counters and with an innovative new process, Lendico is able to beat the prices of banks and pass these savings directly on to their borrowers and investors.
For the analysis of the loan applications the company utilizes an algorithm that classes loan projects in real time. At Lendico, affordable loans and attractive returns are not mutually exclusive: "We have high standards when it comes to selecting borrowers, because we always have the interests of our investors in mind. Due to our cost advantage, Lendico can offer more affordable interest rates and smaller loan sums that for banks usually are not worthwhile", says co-founder of AIH Jeremy Hodara,
"Lendico has been developed as a digital alternative to banks", says the Managing Director of Lendico Dominik Steinkühler." Lendico is very different from a bank as borrowers and lenders benefit from direct interest rates. Lendico as a global marketplace represents a modern way to get a loan and to invest in a new asset class."
In South Africa, the volume of outstanding consumer credit balances is $150 billion (R1.49 trillion). The costs associated with a loan are extremely important to consumers. Even one percentage point less means $1,5 billion (R15 billion) more in the pockets of consumers. This transformative power of the p2p model can already be witnessed in the United States. In 2013 alone, the two most important providers of p2p loans procured $2,4 billion worth of loans - a growth of 177% compared to the previous year.
Alongside Lendico the Africa Internet Holding has succeeded in establishing and developing successful ventures including JUMIA, Zando, Kaymu, Hellofood, Lamudi, Carmudi, Jovago and Easy Taxi. Jeremy Hodara: "We feel it is now the perfect time to expand our focus and vision into the digitalizing finance sector by providing Africa with financial alternatives in order to further support the emerging market's economy."
How the Lendico process works
Prospective borrowers create a loan project on lendico.co.za, lendico.de, lendico.es, lendcio.pl or lendico.at. Lendico analyzes their credit worthiness and offers borrowers extremely competitive rates. Investors can compare all loan projects online and enter bids as low as $35 (R250) or more. If a loan project gets fully funded, the borrower receives his or her loan. Investors receive their respective principal and interest payments from the first month. By diversifying their portfolio across several loan projects, investors can earn higher returns in comparison to similarly secure investments.
The South African loan market in numbers*
- Since 2010, the contribution of unsecured credit to total credit doubled
- The outstanding volume of personal unsecured loan balances stands at R167.4 billion
- South Africans in the highest income bracket (>R15k / month) hold 46% of all personal loans (compared to 38% in Q3 2012)
All details about Lendico
Lendico is a marketplace for loans from one person to the next. The Lendico process works without bank counters, branches or glass towers. The resulting savings are directly passed on to the Lendico borrowers and investors. Both sides profit from attractive conditions. Lendico enables investors to invest in individuals and their projects, and gives borrowers the chance to realize their dreams with the necessary funding. The marketplace and easy process addresses and fulfils the needs of both sides. Borrowers don't want to spend their earnings on overpriced interest rates. Investors want high returns on their savings. Lendico brings both parties together.
The conditions in South Africa
Loans from 7.92%
Loan volume: R3,000 - R200,000
Term: 12 - 60 months
Returns up to 27.39%
Minimum investment: R250
Maximum investment: depends on usage: investors can upgrade to higher-volume account.
Simple pricing structure
Free loan request and account maintenance
Service charge for investors: 1%
Service charge for borrowers: 1.25 - 4%
Other free services: Customer service and early repayment of loans
Lendico is part of Africa Internet Holding (AIH). AIH introduces and accelerates the online shift in Africa - for its people and its culture. AIH has built up multiple web companies including: JUMIA, Zando, Kaymu, Hellofood, Lamudi, Carmudi, Jovago and Easy Taxi. For further information: www.africainternetholding.com.
AIH is supported by Millicom, MTN and Rocket Internet as equal partners.
*Data based on National Credit Regulator "Consumer Credit Report," Sept 2013
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