Lendsqr, a Nigerian fintech startup, has launched an on-lending initiative to provide capital to lenders, enabling them to extend credit to their customers. This initiative offers a capital pool of up to ₦1 billion for lenders with State Moneylender or Cooperative licenses
Lendsqr provides loan management software for banks, microfinance institutions, and digital lenders. Their software helps lenders manage their loan portfolios, and with this new initiative, they aim to support lenders in accessing sustainable capital for growth and expansion.
Founded by Adedeji Olowe, Lendsqr recognized that providing technology alone was not enough to scale lenders’ businesses. They saw a critical need for capital and decided to address it. The on-lending initiative is open to all lenders who provide loans online, including SME lenders, microfinance banks, and commercial banks.
The initiative comes at a time when the demand for credit is rising in Nigeria. The number of approved digital lenders has increased by 79.77% since April 2023, and personal loans have grown by 329.28% year-on-year, reaching ₦7.52 trillion by March 2024. Lendsqr’s on-lending model aims to support digital lenders who face challenges in accessing loan capital, enabling them to obtain credit at reasonable rates.
To qualify for the program, lenders must meet certain criteria, including registration with the Corporate Affairs Commission, a valid lending license, and up-to-date tax documentation. Once approved, lenders can access the capital and use it to extend credit to their customers. The initiative promotes financial inclusion by enabling even the smallest digital lenders to participate in the market.
Lendsqr’s on-lending initiative marks a significant development in Nigeria’s lending ecosystem, providing smaller financial institutions with a reliable source of capital. By supporting digital lenders of all sizes, this initiative aims to deepen financial inclusion, stimulate local economies, and contribute to a more robust and competitive financial services sector in Nigeria.