Lendwise unveils secondary market for education loans
PEER-TO-PEER education finance provider Lendwise has launched a secondary market.
The lender, which launched earlier this year and specialises in funding loans for postgraduate or professional qualification studies, said investors will be able to sell all or part of their investments on the new secondary market.
Investors earn average annual returns of eight per cent a year and loans have a five-year maturity on average but terms can last up to 10 years.
“Introducing a secondary marketplace is just the latest development in the ongoing evolution of the Lendwise platform,” Rishi Zaveri, co-founder of Lendwise, said.
“Long-term, we aspire to keep bringing the newest ideas and innovations to our customers, but we already believe Lendwise comprises all the vital functions you would expect from a leading P2P lender.”
“We are passionate about being able to help young professionals and graduates achieve their goals, but of course, at the heart of Lendwise is its investors, without whom we would not be able to provide that opportunity.
“Giving them the option to attain liquidity as early as possible is something we’re thrilled to be able to offer going forward.”
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Lendwise says it wants to fill a gap in high-street bank lending of this type, and offers loans of up to £100,000.
Borrowers who are in full-time education do not need to start repaying their loans until they finish their course, and there are no penalties for repaying loans early.
By lending to a range of individuals in different study fields and universities graduating over a number of years, investors can diversify their lending portfolios and reduce risk, the platform says.
It also has Lendwise auto-lend and loan filter features which let investors create a portfolio which matches their personal lending criteria, risk appetite and investment objectives.
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