Lots has changed in the peer-to-peer lending industry since LendingClub debuted its retail p2p lending platform back in 2007. Lenme, started in 2018 has connected over 5,000 individual loan borrowers to retail investors, originating over $1.2 million worth of loans. One of the most distinguishing features of Lenme that truly sets it apart from some of its competitors is the ability for loan investors to offer an interest rate they deem appropriate (from 1-200%) after zooming in on the financial health of the potential borrower of a loan, including credit score range, income, credit utilization, and a quick look at the borrower’s income and expenses for the past 30, 60, and 90 days.
Bottom line for investors: Lenme provides ample options for investing in individual borrowers and performing due diligence on those borrowers. Expect high risk, but high rewards.
Bottom line for borrowers: Lenme provides borrowers with access to funds quickly, usually between 24-72 hours. That said, since your funds come from another user you should not expect any specific rate, and often loans can be as high as 200% interest.
For borrowers, Lenme provides access to funds quickly, usually within 24-72 hours, however, in perusing the recently disbursed loans list (which all users have access to) the vast majority of loans regardless of requested loan amount, borrower creditworthiness, or term length are being matched with offers from investors who have offered interest rates between 190%-200%. To give you a sense of the type of loans requested on Lenme, a quick analysis of the past 24 hours in matched and disbursed loans on Lenme shows the average loan amount requested by borrowers was $289 with an average term of 1.6 months. The average interest rate for these loans was 176%. Investors were expected to earn a 22% return on funds invested. Lenme charges a $3 “platform fee” (or 1% of the total loan amount, whichever is greater).
Who Should Consider Investing on Lenme
Investors looking to back short-term (think 6 months or less) individual loans and set their own interest rates should look to Lenme as a potential platform for investing. If understanding the risk profile of a potential borrower is important to you as an investor, Lenme should provide everything you’re looking for.
Investor Loan Offer
Who Should Consider Borrowing on Lenme
Borrowers looking for access to quick funds, minimal questions about how borrowed funds will be used, and who don’t mind potentially high interest rates (up to 200%) should look to Lenme as a potential option. One caveat for borrowers to receiving funds quickly is that you’re at the mercy of individual investors, meaning you could receive a loan offer in a little as 30 minutes, or your loan could sit on the “shelf” for 30 days before receiving an offer from an investor. It’s also important to keep in mind that your first rate offer might not be the best offer you’ll receive, so it may make sense to wait for several offers to come in before deciding on the offer you’ll accept.
Borrower's view of offers
Final thoughts on Lenme
For investors, Lenme is worth taking a look at if you’re interested in lending out small sums of cash (the majority of loans being requested by borrowers are for amounts less than $1,000) for short periods of time while feeling like you’re in control of the “underwriting” process
For borrowers, Lenme offers a way to get access to cash quickly, however the terms of your potential loan are dictated by an individual lender meaning you should not expect a standardized treatment and could receive wildly different interest rate offers in the span of hours.