Israel based eLoan has a new shareholder. Meitav Dash has acquired a 20% stake in the peer to peer lending company. The young direct lender has loaned 8.3 million shekels (about $2.14 USD) since the platform launched a scant 18 months ago, according to a report in Haaretz. The investment was estimated at “several million shekels”.
The investment house Meitav Dash made its first foray into online consumer loans Sunday, saying it had acquired 20% of eLoan for an undisclosed sum.
Consumer credit in Israel is ripe for disruption and eLoan is following a similar model as exemplified by peers in the US and the UK. Default rates in Israel on consumer credit is very low; 0.3% according to one publication. The eLoan platform makes loans for up to 47,500 shekels – a relatively small amount.
Expectations are for the global peer to peer, or marketplace lending, industry to grow dramatically over the coming years as technology drives efficiencies for the loan making process.
