Brief: South African Peer to Peer Lender Expands into Small Business Loans

rainfin_logoAccording to a recent report RainFin, a Peer to Peer lender owned in part by Barclays, is broadening its reach to include small business loans.  The P2P lender is following a similar path to Lending Club, the large US based P2P lender that just announced their much anticipated IPO.  Business borrowers may now approach lenders for up to R 250,000 on a term of 24 months.  Annual sean emeryinterest rates were said to be from 1o% to 32%.  In a quote on MoneyWeb, CEO and founder Sean Emery stated;

“We have two years of history now, but volume ramps up as you have performance data,” he said. “We’re in the equity phase. When you get a rating, that’s the trigger point for massive acceleration.”

The report continues to state that about 5% of loans on the RainFin platform have defaulted.  

barclaysRainFin has a large investor backing the small company.  Barclays South Africa owns 49% of the company and are apparently interested in owning the platform.   Stephen van Coller from Barclays said in a phone interview.  “We’d love to own the platform”.

 

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