Lendahand specializes in social impact lending, providing a unique investment platform that bridges the financial gap for SMEs and entrepreneurs in developing economies. The platform focuses on facilitating investments in high-impact sectors, including clean energy, agriculture, and SMEs. By doing so, Lendahand aims to foster economic growth, create jobs, and promote sustainable development in emerging markets.
Key numbers
Who can invest?
How it works
Residents of the EU:
Lendahand is open to residents of EU countries, excluding the UK and Switzerland. Investors must provide valid identification such as an ID card, driver’s license, or passport. Additionally, a bank statement not older than three months is required for non-Dutch bank account holders.
Age Requirement:
Investors must be at least 18 years old. For legal entities, the appointed individual must be authorized to act on behalf of the company.
Legal and Regulatory Compliance:
Investors need to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. This includes the KYC process, which might require additional documentation if investments exceed certain thresholds.
- Specialisation: Social impact lending, focusing on SMEs and entrepreneurs in developing economies, particularly in sectors like clean energy and agriculture
- Maximal observed interest rate: 8%
- Average rate: 6.5%
- Minimum investment amount: €10
- Average terms: 25
- Currencies supported: €
- Foundation year: 2013
- Commission: 0%: No joining or investment fees, free repayment process
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Instruction:
Lendahand operates as a crowdfunding platform based in the Netherlands. It is regulated under the European Crowdfunding Service Provider (ECSP) license. One of Lendahand’s key areas of specialization is microfinance. It partners with local financial institutions to channel funds to small businesses that otherwise lack access to traditional banking services. This approach helps to empower entrepreneurs, especially in regions where financial inclusion is limited.
Additionally, Lendahand has a strong focus on gender-smart investing. Through collaborations with organizations like USAID, the platform aims to increase funding for women-led businesses, recognizing the significant social and economic benefits of supporting female entrepreneurs. This initiative is part of Lendahand’s broader commitment to impact investing, ensuring that investments generate both financial returns and positive social outcomes.
Platform collaborates with Intersolve EGI B.V., a licensed e-money institution based in the Netherlands, to manage its payment processes securely and efficiently. Intersolve EGI is regulated by the Dutch Central Bank and the Financial Markets Authority, ensuring robust oversight and compliance with financial regulations.
Step 1: Registration
To begin, potential investors must create an account on the Lendahand platform. This process involves providing personal information and verifying identity through a valid ID card, driver’s license, or passport, along with a bank statement if the account is non-Dutch.
Step 2: Selecting Investments
Once registered, investors can browse a variety of projects available for funding. Lendahand categorizes projects by sectors such as clean energy, agriculture, and general SMEs, often with a focus on gender-smart investments, particularly supporting women-led businesses. Each project listing includes detailed information about the business, the purpose of the loan, the interest rate, repayment terms, and the credit risk rating, which ranges from A to E.
Step 3: Making an Investment
Investors can start with a minimum investment of €10, making it accessible to a broad audience. Investments are made in Euros, and the platform does not charge any fees for joining or investing. The repayment process is also free of charge, making it cost-effective for investors.
Step 4: Due diligence
Before any project is listed, Lendahand conducts thorough due diligence. This includes financial analysis, impact screening, and KYC checks. The internal Impact Committee and an external Credit Committee review all projects to ensure they meet Lendahand’s standards for social impact and financial viability. Projects are launched on the platform only after receiving final approval from these committees.
Step 5: Repayment
After an investment is made, Lendahand continues to monitor the progress of funded projects. Regular updates are provided to investors, and repayments are typically made every six months. The platform ensures that the repayment terms are adhered to by the borrowers, maintaining a high level of transparency and trust.
Impact and returns
Investors on Lendahand not only earn financial returns, which average around 6% per annum but also contribute to meaningful social impact. The funds help businesses grow, create jobs, and support economic development in their communities
Contact
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