Date of Launch: 2015
Founded in 2015, LoanVi focuses on connecting the unbanked population of Vietnam to investors seeking high yields, through its online Peer-to-Peer (P2P) lending platform.
- LoanVi’s P2P lending solution is targeted towards individuals and SMEs who are underserved by the banking community due to reasons such as lack of credit history. The company offers their financing solutions through an online platform and attracts investors with high fixed-income returns.
- Potential borrowers have the option to fund their financing needs in the range of VND 5,000,000 (~USD 224) to VND 100,000,000 (~ USD 4,484) with a term period ranging from 6 months to 2 years.
- The application process for potential investors involves the completion of a simple online application form and a 2 to 3 days waiting period during which the LoanVi team reviews and approves the application. Investors have the option to invest as low as VND 500,000 (~USD 22.42) in loans of different credit qualities and risk levels. The investment returns range from 8.35% to 21.16%, depending on the loan risk.
- Facts and figures:
- The company’s investors include SparkLabs Global Ventures, which is a USD 30M seed investment fund of SparkLabs, and Start-Up Chile, which is a grants and acceleration program of the Chilean Government.
- LoanVi’s P2P lending platform has been endorsed and supported by the Vietnamese Government, as the company graduated from an incubation program run by the Ministry of Science and Technology.
- For borrowers, LoanVi offers the following key benefits:
- Convenience and accessibility: Given the high rate of about 70% of the unbanked population in Vietnam, the LoanVi service empowers a wider population segment to access funding in an easy and transparent manner. Individuals with limited or no credit history have the option to access funding at affordable rates compared to the rates offered by underground loan sharks and other unrecognized means of borrowing.
- For investors, LoanVi offers the following key benefits:
- Accessibility: LoanVi’s P2P lending platform offers access to an alternative fixed income asset class with high yields for investors with varying risk appetites. Additionally, investors have the choice to split their investments by funding multiple borrowers, and thus control the level of diversification in their portfolio.
- Risk control: LoanVi claims to conduct strong credit review checks and due diligence before allowing borrowers to participate in the LoanVi platform. LoanVi’s credit review process involves assessment of credit history, personal information and social media indicators. Thus, potential investors are assured of a transparent and robust risk assessment of LoanVi’s borrowers.
How it works
The image and video given below illustrate the process and concept of the LoanVi’s solution: