LendMe launches in New Zealand after a rigorous period of beta testing.
Following on from its successful licensing by the Financial Markets Authority last May, New Zealand P2P lender LendMe has finally started its operations. According to the platform, the soft launch was preceded by a “rigorous beta testing” period, which turned out to be a success. During that period, the platform has not been laying idle. Indeed, over the past several weeks, LendMe has originated over $600,000 in loans, generating investor returns from 7.09% to 7.74%.
LendMe claims to be New Zealand’s first peer to peer marketplace, specialising in secured loans from $25,000 to $2 million. All loans are secured against borrower assets, most commonly 1st mortgages over property. Lenders may fund loans in full or in increments of $1,000 and they are provided with relevant information about borrowers. LendMe sets the interest rate for a loan based on a borrower’s credit score and other criteria, such as available equity.
After the launch, the platform will focus on a number of improvements. As a platform representative explained:
“We know that our need to focus on the platform will never stop, with improvements and enhancements already being designed. However, the hard work being put in by the LendMe team and our partners is paying off […]”
New Zealand’s peer-to-peer lending sector is beginning to heat up. Only last October Lending Crowd – another peer-to-peer lending platform – became the fourth P2P lender to secure a licence in the country, preceded by Squirrel Money (not yet operating) and the well-known Harmoney. And according to local experts there is plenty of room for further entrants.