Upcoming Student Lending Platform for Graduation Studies in the UK
Lendwise is a UK peer-to-peer student lending platform that connects postgraduate and professional qualification course attendees with investors seeking the interest returns from MBA, Master or PhD student loans. Available for everyone with a UK Bank account.
|Founders:||Ioannis Georgiou, Rishi Zaveri, Kypros Mouzouros|
|Operating in:||United Kingdom|
|Requirement:||UK bank account|
Office location in London
Table of Contents
Lendwise Pros & Cons
Characteristics of Loans
5% – 10%
1 – 120 months
Higher earning power ✔
Minimum Investment ⇙
Direct Investment Structure
Loans on Lendwise
Lendwise has a simple yet informative overview of each student loan available on the platform. The most basic information such as loan amount, duration of the loan as well as net and gross interest rate is displayed as seen in the image below. Furthermore, the loan type is specified together with the exact university and degree the student is borrowing money to attend. So far all borrowers are from the United Kingdom, but this might be expanded to other countries in the future.
Apart from the more classic information displayed above, the payment schedule is available and updated with every new monthly transaction. Most borrowers do not pay principal in the first 6 months and then starts paying off the loan. An example of a repayment schedule can be seen below.
Buyback Guarantee on Lendwise
- Lending to a large range of borrowers
- Lending at different interest rates (and thereby different risk profiles)
- lending across various time periods
What happens if a borrower on Lendwise don't repay the loan?
- The direct structure means you are buying a claim against the borrower directly.
- The indirect structure means you obtain exposure to a loan by investing in a loan issued by a platform company to the loan originator.
To further look into loans on the primary market, you can use the Advanced Search function to look for loans from a specific university you find interesting or find loans that have been funded a certain percentage or amount. The platform has only been launched recently but has already facilitated loans for over 2 million GBP and at the moment all loans on the primary market are funded very fast. Because there are no available loans on the primary market as of writing, you see the Term and Grace period filtering going from 0 to 1. However, more than 100 loans are available on the secondary market where fees only apply to the seller, so it is still possible to get into a satisfying number of loans at the same terms as manual lenders.
Nice to Know for Investors
Deposit & Withdrawal Process
- Transfer money into the Lendwise account from your UK bank with a traditional bank transfer or through any 3rd party transfer provider such as Transferwise, Revolut or Monese.
- Your funds will be available for investment within the day of confirmed arrival (usually 1-3 banking days).
- After the funds are received and added to the account, you will receive an e-mail confirmation.
The reporting on Lendwise do not yet provide any elaborated information about your portfolio and is simply displayed loan by loan as when you look at primary and secondary market. This is a feature which can improve the experience as there is no real way to get a good overview of your entire portfolio fast.
We will pay returns to you gross, i.e. without deducting any income tax. Your tax obligation will depend on your individual tax circumstances. Lendwise will make available to you a statement of interest earned and losses suffered from bad debts in order to enable you to make the correct tax declarations and pay your taxes. For more information on Tax on peer to peer lending please visit www.gov.uk/guidance/peer-to-peer-lending.Lendwise FAQ “Will i have to pay tax on my P2P income?”
Who Can Invest?
To sign up with Lendwise as a Lender you must be over 18 years of age, have a UK bank account in your name and not be a lender by way of business. you must also read carefully and accept the terms and conditions, which detail the Lender eligibility criteria.Lendwise FAQ: “What are the criteria for lending with with Lendwise?”
Is Lendwise Regulated?
Please note that this overview may contain affiliate links. It means that a commission is earned if you decide to invest after using the link – without additional costs to you. The information on this site does not constitute investment advice and is solely to give you a simple and easy overview of the platform. Do conduct your due diligence and consult your financial advisor before making any investment decisions.