German online startup incubator Rocket Internet has launched a service offering peer-to-peer lending service in Germany, called Lendico. It is a marketplace for loans from person to person / consumer and investment loans of between EUR 1,000 and EUR 25,000 at interest rates starting from 2.99%.
Lendico brings private borrowers and investors together on its platform, in order to avoid the high costs of traditional banks. It has an in-house designed formula to evaluate each borrowers credit risk and to set the loan rates in real time.
In order to borrow money on Lendico, a person could apply for a loan online. Within a few minutes he/she will receive a rate for their personal loan project, a few examples are shown above. Investors can then invest directly into the project. After the completion of financing the money would directly be deposited in the borrower’s account, which could be paid off in monthly instalments
They can invest in projects starting at EUR 25, and will get returns on their investments later. Thereby the service caters to both the borrowers and investors, reducing the dependencies on traditional banks.
“From the start, Lendico was developed as the digital alternative to banks,” says co-founder and CEO Dr. Dominik Steinkühler.
The service is available only in Germany currently, but plans an international expansion into several new countries in the coming months.
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