SHORT-TERM loans provider Welendus has hit the £200,000 lending mark within its first five months of operation.
The peer-to-peer platform, founded by former NASA engineer and rocket scientist Nadeem Siam (pictured), said it has received more than 12,000 applications for its loans.
Welendus launched a beta platform in January ahead of a full launch in April.
“Reaching £200,000 on our loan book represents a significant milestone for Welendus, having launched our P2P platform just five months ago and while still at our beta release,” Siam said.
“Our figures reflect a real and growing consumer demand for ethically sourced, short-term credit, and with a quarter of British adults having no savings for unexpected cash emergencies, it is vital that borrowers have access to affordable, fair, and flexible short-term finance.”
The platform gained approval from the Financial Conduct Authority in October 2017 and wants to shake up the payday lending market by offering more reasonable interest rates than its competitors.
It currently offers borrowers an interest-free loan if the debt is repaid in one day.
Individuals can borrow up to £500 using the new facility, which is aimed at those faced with unexpected or emergency bills, Welendus said. The borrower does not have to pay any interest if they pay the loan back within 24 hours.
There are no early repayment fees and borrowers can get a decision within five minutes.
Investors will receive returns ranging between five and 15 per cent to fund the loans.