Lendy is a fintech platform for eradicating poverty.
The main tool we use to fight poverty is the income contingent loan. Income contingent loans are loans that are only repayable when the borrower has sufficient income to do so. This allows the borrower to borrow money to access products and services even before their income allows them to do so.
We plan to pioneer the Poverty Eradication Income Contingent Loan (PEICL) structure which constrains giving out loans to things that specifically help end poverty and help the recipient increase their productivity and income.
PEICLs will be available for things such as low-cost Housing, Education, Healthcare and Daily Essentials such as food, clothing and utilities. We expect that making PEICLs widely available will provide a ladder out of poverty for individuals and provide governments with greater tax receipts to further fund social services, as people and businesses will be earning more.
Lendy software helps to manage income contingent loans for borrowers, lenders and governments. The software will provide loan issuance, income tracking, repayments and funds management features. Lendy software will be made available to other finance companies with no fixed costs, just a fee of 1% of funds issued via the platform. It will be available as a web application and an application programming interface (API), which allows people to build their own user interface and/or integrate it with other loan management software platforms.
We plan to raise and manage funds, usually with direct or indirect support from governments, for Poverty Eradication Income Contingent Loans (PEICLs) for low-cost Housing, Education, Healthcare and Daily Essentials. Our funds management will be both wholesale and retail, depending on the circumstances that make most sense on a country-by-country basis. Our focus is on providing solutions that ensure everyone in the world has access to a financial ladder out of poverty, this means creating solutions that are customized for each geography while using as much of a common open-source platform as we can.
We will provide Poverty Eradication Income Contingent Loans (PEICLs) to end borrowers as well as other loan providers such as banks, microfinance institutions, non-bank lenders and nonprofits so they can integrate our loan products with their own offerings. The specific modality of offering loan products will differ in each geography based on what best achieves the goal of building a widely accessible, globally available, financial ladder out of poverty.