Lendwise keeps low default rate despite higher course fees
Lendwise has maintained low default rates across its loan book despite significant increases in post-graduate course fees.
The peer-to-peer education finance provider specialises in postgraduate and professional qualification courses such as MBAs.
Borrowers pay off the loans once they are in employment after the course has ended. Lendwise chief executive Rishi Zaveri (pictured) said that less than two per cent of the platform’s loan book is in default or arrears, and it has only written off around £24,000 to date.
Read more: Company Focus: Lendwise
“We haven’t seen a major effect on our loan book from the current macroeconomic challenges, as of yet,” he told Alternative Credit Investor.
“I believe this is in part due to the affordable rates that we offer as well as the fact that our rates are fixed.
Read more: Lendwise: Education niche protected platform despite headwinds
“When it comes to post-graduate education, universities and business schools are able to ‘uncap’ the fees and we’ve seen quite high rises lately coupled with living costs having gone up. Our borrowers are coming out with decent jobs though, so they are able to service our loans which is reflected in our low default rate.”
Lendwise is approaching £50m of loan originations since its inception in 2018. It launched the first education-focused Innovative Finance ISA in January 2022.
Read more: Consumer lending special report