Lendwise launches secondary market for trading whole or partial loans

By Oliver Smith on 22nd August 2019

P2P/Marketplace Lending

Investors will soon be able to sell their loans of between £5,000 and £100,000.

Lendwise launches secondary market for trading whole or partial loans
Image source: Photo by Buro Millennial from Pexels.

Student loan funding platform Lendwise has launched a novel secondary market for investors to cash out either partially or fully before their loans reach maturity.

Lendwise offers loans of between £5,000 and £100,000 repayable over terms up to 10 years for students looking to take postgraduate courses. 

For students, the loans include interest of between 7% and 12%, while investors can see returns of up to 8%.

“Introducing a secondary marketplace is just the latest development in the ongoing evolution of the Lendwise platform,” said Rishi Zaveri, Co-Founder and CEO of the company.

“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.”

It’s not yet clear what format the secondary market will take, whether there’ll be restrictions on how investors can offload their loans, or if Lendwise will take a cut on secondary sales.

UPDATE 23-08-2019 - A Lendwise spokesperson told AltFi that investors can place any performing loan investment on the secondary market and can choose whether to sell all or part of it at the value of the outstanding loan amount. There is no premium or discount pricing that can be applied by the seller, and the seller will pay a 1% fee to Lendwise on a successful sale. Additionally, non-performing loans cannot be placed up for sale.