Unsecured Internet Lender, Lidya Starts Operation Saying Less


After dotting the ‘i’ and crossing the ‘t’, Lidya, the much touted Internet-based unsecured lender has finally opened its website to take application from borrowers.

It could be recalled that Tunde Kehinde, co-founder of Lidya had announced in New York that new venture will target small businesses and micro lenders via the digital platform.

As predicted by PageOne Startup, Lidya is not really a digital bank. The startup is an unsecured lending provider that is only focused on the credit side of things. The company will not be taking deposits from customers but for only customers who want to get micro loans for many reasons.

As it executed, Lidya does not have bank accounts for its customers but their online login to track their applications and manage their credit flow. Customers who become successful will get funds deposited into their respective bank accounts.

As opposed to its competition such as RenMoney, Social Lender, PayLater and Snap Credit, Lidya is not quoting its interest rates on its website. This is a minus bearing in mind that competition are upfront on what customers should expect.

The website is also saying too little about key terms and conditions. In the era of skyrocketing inflation rate, customers are sure to be very wary of taking on loans that its interest rate will end up increasing several folds once inflation goes a little notch further.

Yesterday, the National Bureau of Statistics, NBS said October inflation rose from 17.9% to 18.3% citing price increase on food items such as bread and other staple foods. The success rate of Lidya will definitely be affected by inflation rate which will further dampen its clout to convert prospects.

As opposed to targeting individual and personal loans, the company might be looking at targeting merchants in its kitty. Africa Courier Express, ACE Logistics, the parent company of Lidya said it has serviced over 500,000 merchants and people in its two years of operations.