Lendwise

Lendwise: education finance through peer-to-peer lending

Lendwise Ltd is a UK entity authorised and regulated by the Financial Conduct Authority (FCA) with registration number 782496. Its activity combines the provision of loans for academic training with a peer-to-peer (P2P) investment platform, in which investors directly fund the loans requested by students. The company is registered in England with company number 10466048 and is headquartered at Temple Chambers, 3-7 Temple Avenue, London.

Student loan products

Lendwise's loan catalogue targets different higher and professional education profiles. The options offered include:

• Postgraduate degree loans (MSc, MA, LLM, etc.).
• International MBA student loans.
• Refinancing of private student loans.
• Professional qualification, training course and bootcamp loans.
• Loans for SQE1 and SQE2 exam fees.
• Graduate Life Start Loan.
• Loans for private school tuition fee payments.
• Loans for parents funding university education.

Available amounts range from £5,000 to £100,000. The interest rate is fixed for the entire life of the loan and is personalised according to the applicant's profile. The average borrower rate is stated at 12.73% APR. The representative example published by the entity assumes borrowing of £30,825 over 120 months at 12.73% APR, with a monthly payment of £509.26, a total amount repayable of £61,199.65, a fixed interest rate of 11.62% per year and £925 in fees.

How the loans work

The process begins when a student accepted onto a postgraduate or professional qualification programme completes a form with their details. Lendwise analyses the information and, if the application is successful, sends a funding proposal with the amount, interest rate and repayment schedule. If the student accepts, the necessary documentation for the loan agreement is finalised. The loan is then listed on the platform's primary market, where investors fund it in diversified parts, either manually or via an auto-invest robot. Lendwise disburses the funds according to the agreed plan: it pays fees directly to the university and provides a monthly amount for living expenses. The borrower begins repaying the loan and investors receive principal and interest; depending on the type of course and the loan term, repayments may start up to six months after graduation.

Investing on the platform

Lendwise allows investors to participate in education loans through its platform. The entity estimates an average annual return of up to 9.0% for a diversified portfolio of loans, net of expected defaults and the servicing fee on interest. Investment can be channelled through an Innovative Finance ISA (IFISA), which does not reduce the risk of the investment but allows potential gains to be tax-free. The platform offers the AutoLend feature, a robot that facilitates diversification and hands-off investing, as well as a secondary loan marketplace. Lendwise warns that this is a high-risk investment: investors could lose all their capital, it is not covered by the Financial Services Compensation Scheme (FSCS) and returns are not guaranteed.

Regulation and risk warnings

Lendwise Ltd operates under authorisation from the Financial Conduct Authority (FCA) with number 782496 and is registered with the Office of the Information Commissioner under number ZA281795. The entity is not covered by the Financial Services Compensation Scheme. The company itself and the UK regulator stress that P2P loans are often granted to borrowers who cannot access traditional bank financing, which increases the risk of default. The advertised return rates are not guaranteed and a higher advertised return implies a greater risk of loss. The platform could fail and make it difficult to recover your money, and the secondary market does not guarantee the early sale of investments.

Corporate profile and customer service

Lendwise Ltd is headquartered at Temple Chambers, 3-7 Temple Avenue, London EC4Y 0HP, and is registered in England with company number 10466048. The company maintains office hours from Monday to Thursday 9:00 to 17:30 and Friday 9:00 to 15:00. It has separate contact channels for general support, investors, borrowers and complaints.

Location and contact

Temple Chambers, 3-7 Temple Avenue, London EC4Y 0HP · Phone: +44 (0) 20 3890 7270 · Email: support@lendwise.com · Hours: Monday – Thursday 9am – 5:30pm; Friday 9am-3pm