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Today I am going to introduce Lenndy to you, a lithunian p2p platform which offers buyback on most loans. Lenndy has been developped since spring 2015 and went live in September 2016 with the first loan offer. The process to open an investor account is somewhat different then what we are used to. Therefor I will describe the procedure below a little bit closer.
Identification process through Paysera
The opening of a Lenndy account is quick and easy, but then it is not finished. The Lenndy account needs to be linked with your paysera account as paysera is fullfilling the identification process for Lenndy. Paysera is a currency forwarding and exchange service and to some extent comparable to Currenyfair and Transferwise. You can create the link and the paysera registration directly in your Lenndy account, just hit the activate account button. Or you first create directly a paysera account and link it when it is confirmed. I suggest doing it directly at the paysera website, as my browser hung up itself a few times when I was trying it through my Lenndy account. The login area at Lenndy can be seen on below picture (at that stage you are refered to as anynomous user).
With a click on the orange activate button you can link your Lenndy account with paysera. I suggest doing that only after you registered directly with paysera. You will need at least a level 3 verified account at paysera in order to activate your Lenndy investor account. Follow this link to create a paysera account and choose in the settings to authenticate a level 3 account. For that you will need to verify your mobile phone number (you will be sent a sms code) and upload an idendification document. This will be photographed out of the browser, you don’t have the possibility to upload something from your personal computer. This step contains also to make a selfie of your face holding the ID document. To finalize you have to fill out a short KYC questionnaire, this takes only a minute or two. It does not matter in which order you perform the steps (see below). You just need to finish them all to get verified.
After that paysera verfieds the documents and enables level 3 if everything is okay. Otherwise you will be informed what did not match the criterias. I received the answer that my selfie was not ok, that it is a different person holding my document into the camera. I contacted the support and explained that this is me and they rechecked and gave green light. I uploaded everything in the evening, and in the next morning at 10 o’clock I was able to proceed and link my accounts.
Enough administrative and let’s take a look at buyback
Lots of loans are equipped with buyback (and up to 14% interest). You can see if there is a buyback when you look at the picture on the right side (black Garantija stamp). The buyback works as following: If a monthly installement is not paid on due date by the borrower, the loan originator will pay the same day. The loan originator will pay two monthly installements and after 90 days (given the borrower did not meet his obligations in the meantime) the residual principal plus accrued interest will be bought back. So there is no need to wait 60 days or so as on other platforms to get your loan bought back. I like this way of handling it and you exactly know when you are going to get paid. On the other hand it makes it difficult to impossible to figure out if the borrower paid or the loan originator.
My first impression of the platform and the support staff is positive (I will ignore the detour through paysera). The interest rate level is appealing and I like how the buyback is equipped and handled. I will give an update in the coming days as I then already should have made my first investments.
If you have any questions do not hesitate to contact me through posting or search for the contact form in the header.