A Good Life For Everyone
Lendy partners with businesses that provide essential services, such as education, housing, healthcare, and daily necessities (like food and clothing), to help them offer long-term loans to their customers.
We’re starting with education.
Lendy enables educational institutions to provide loans to students who wouldn’t normally qualify for credit, using a new and innovative lending model.
This makes education accessible to all in a financially sustainable way.
How Lendy Works
Lendy raises capital on behalf of education providers at wholesale interest rates and lends these funds to students who want to study but are unable to pay upfront or meet traditional lending requirements.
To make this work, we've developed a new type of loan, the Flow Loan.
A Flow Loan is a long-term loan, typically 35 years, that combines a low interest rate with a repayment amount that can exceed the initial borrowed amount.
For example, consider a $100,000 education loan with a Flow Rate of 120%. The borrower repays $120,000 (the Flow Amount), along with interest on that full amount. The difference between the original loan ($100,000) and the Flow Amount ($120,000) is called the Gap Amount, in this case it is $20,000 (and in this case the Gap Percentage is 20%).
The Gap Amount acts as a form of credit insurance. It allows the lender to offer a low interest rate, similar to that of a home loan, while still accounting for the risk of borrower default.
When the service being purchased is education it enables the borrower to increase their future income with their additional skills and repay the loan with their increased income.
Please see the video below for a more detailed explanation.
What Lendy Does
In its initial phase, Lendy offers a full suite of services to educational institutions, enabling them to accept Flow Loan payments for tuition. These services include:
- Sourcing finance from international capital markets
- Loan origination
- Loan disbursement
- Loan repayment management
In short, Lendy helps education providers admit students who couldn’t otherwise afford to attend, while setting them on a path to higher earnings and eventual repayment.
If a student defaults, the institution may not recover the full tuition. However, most students will repay more than they borrowed, thanks to the Flow Loan structure, offsetting occasional losses.
Lendy’s goal is to ensure the program remains profitable for institutions, while remaining fair and accessible for students. Borrowers typically have up to 35 years to repay their loans at low interest rates.
Our Long-Term Vision
Our ultimate goal is to make essential services, education, housing, healthcare, and daily necessities, accessible to everyone, when they need them. We believe this is key to building a world where all people can live stable, dignified, and fulfilling lives.
For further information please contact Ankur at ankur@lendy.me