WELENDUS is the latest peer-to-peer platform to launch an Innovative Finance ISA (IFISA).
The short-term P2P lender is offering investors tax-free annual returns of up to 15 per cent within the product.
Investors are matched with a range of loans based on their risk appetite using the Welendus AutoMatch feature and can earn from five to 15 per cent a year.
It comes as Welendus has raised close to £1m in its latest crowdfunding round on Seedrs.
The platform launched its latest fundraising round last month, aiming to raise £850,000.
It is currently on £959,826.
The funds raised from the latest round will go towards recruitment, marketing, technology and more intellectual property applications.
“One of the main things we pride ourselves on at Welendus is our ability to allow lenders to earn higher interest, and the borrower to save on their borrowing,” Nadeem Siam (pictured), chief executive of Welendus, said.
“This gives both parties extra savings, increasing their purchasing power which is then funnelled back into society when spent.
“Therefore, this is not only better for the lender and borrower, but also for the economy. The new IFISA product will further this, particularly for investors, and will hopefully encourage more to join the crusade in protecting vulnerable consumers by giving them help during difficult times.”