A digital lending software platform in Nigeria fintech, Lendsqr, has revealed that it is injecting $600,000 (NGN1 billion) into the Nigerian lending ecosystem.
The donation is aimed to empower local digital lenders with direct access to vital capital for growth.
The initiative is set to strengthen small medium scale lenders, allowing them to meet surging credit demands and expand their reach within communities across Nigeria.
Founded in 2018, Lendsqr, has long been a leading provider of loan management software, supporting banks, microfinance institutions, and digital lenders with tools to streamline loan applications, credit scoring, and collections.
The CEO of Lendsqr, Adedeji Olowe, in an interview with newsmen noted that the new on-lending model, is making Lendsqr to go beyond technology to tackle a critical hurdle.
“For a long time, we believed that providing top-tier lending technology was enough to help lenders scale,”
“But technology alone cannot scale a loan business without adequate capital. That’s why we decided to go a step further and solve this critical need,” he said.
Targeting lenders with State Moneylender or Cooperative licenses, Lendsqr’s capital pool initiative is designed to enable digital lenders to secure funds at reasonable rates, opening doors for sustainable growth.
By bridging the gap between cutting-edge lending technology and the essential funding needed to meet market demands, Lendsqr’s new model sets a precedent for the future of fintech-facilitated lending in Nigeria.
What is Lendsqr?
Established in 2018, Lendsqr, is a Nigerian fintech company that provides a digital loan management platform.
It caters to banks, microfinance institutions (MFIs), and digital lenders, enabling them to automate and simplify their lending processes.
Specifically, it targets lenders that hold State Moneylender or Cooperative licenses. These types of lenders are often community-focused and have limited funding but play a vital role in serving Nigeria’s underbanked and underserved populations.
Lendsqr’s platform allows lenders to streamline loan applications, scoring, and collections, making lending more efficient and accessible.
By partnering with these lenders, Lendsqr empowers them with both capital and the necessary digital infrastructure to operate efficiently.
The targeted lenders can benefit from Lendsqr’s technology, which integrates seamlessly with their operations, enabling them to reach borrowers effectively.
This focus not only expands the reach of digital lending but also creates a more equitable lending landscape, allowing small lenders to compete in the market alongside established financial players.
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To access Lendsqr’s capital pool, lenders must meet specific eligibility criteria. Firstly, they need to be legally registered with Nigeria’s Corporate Affairs Commission (CAC), and they must hold a valid State Moneylender or Cooperative license.
In addition, lenders are required to integrate and actively use Lendsqr’s loan management software, ensuring a streamlined process for managing loans.
Participating lenders are also expected to have up-to-date tax documentation, and for new clients, a minimum of three months of active platform usage may be required before they can access the funding.
These criteria ensure that funds go to lenders who are committed to leveraging technology in their operations and are prepared to make a significant impact in their communities.
The on-lending program offers significant advantages for borrowers by increasing their access to credit.
Participating lenders, who previously struggled with funding limitations, can now provide more loans at competitive rates, especially benefiting those who are often underserved by traditional banks.
This initiative directly supports individuals and small businesses needing financing, helping to drive economic growth at the grassroots level.
Lendsqr’s platform includes tools for accurate credit scoring and effective collections.
Consequently, borrowers are likely to enjoy more accessible, reliable credit options, which may contribute to better financial stability and growth opportunities for individuals and businesses in Nigeria.
