Even up to this day, I still marvel at how internet redefined the way we live and do things. It used to be that we have to painstakingly go through different process and steps, and deal with long periods of waiting before we can fully avail of different services. But with the advent of the internet, almost everything can be had in an instant. This has forced companies, institutions and emerging businesses whose main job is to provide valuable services to people to reinvent themselves or come up with innovations to keep up with the changing times.
One such innovation in the field of finance is Lenddo. It is the world’s first credit scoring system and the first Philippine loans facility that uses an individual’s online reputation to access current credit standing in granting and extending simple business loans, payday loans and other personal finance services.
Joining Lenddo is easy, all you have to do is complete the registration process by filling in the necessary details such as complete name, email, password, gender, birthday and mobile number.
Once registered, you can start increasing your credit score to avail of the different services. You can build your credit score by making your online presence felt and by establishing a good online reputation.
Create good online reputation by simply linking all your social network connections such as email, facebook, twitter, google and linkedin to your Lenddo account. Build your community and trusted network by inviting friends, colleagues and relatives. This will also help increase your credit score. The higher your credit score, the easier for you and those in your network to access the different financial services that Lenddo offers.
Your connections are what Lenddo will use in assessing your capacity to borrow and pay for the personal, educational, small business and even home repair loans that you can apply.
Though I haven’t tried availing any of the loan facilities that they offer, I like the thought of not having to go through the tedious and stressful process of submitting endless documents as well as waiting for weeks for the loan to be approved, especially when urgent financial need arises (ex. medical emergency).
Currently Lenddo provides loans for Education, Medical Emergencies, Home Improvement and Career Based Relocation. Each type of loan has a corresponding list of requirements that you need to complete for your loan to be approved. Generally, you need to be employed and you need to have a credit score of 400+ plus at least three trusted connections to jumpstart your apllication.
As soon as you meet all the other requirements, the loan can be approved and the loan amount can be given as early as one business day. Lenddo offers loans at a minimum amount of php 5,000 to a maximum of php 43,000. Interest rates are dependent on your Lenddo score and terms of payment ranges from 3 months to a year, again depending on your Lenddo score.
Lenddo only provides loans to members with a current bank account. In claiming loans, you don’t have to take a leave from work to personally claim the fund from their office, the loan fund can be deposited straight to your bank account. You can also pick from the many modes of payment that they provide, it can be through direct debit to mobile payments or local bank deposit.
Lenddo is a fast, reliable and efficient way of applying for a loan. It is paperless and hassle free.
The way I see it, it works around three principles:
- Improve the quality of life of its members by giving them access to loan facilities for their education, medical, career/business, and home needs.
- Engage in community building by empowering members to create their network, maintain good connection and look after each other’s credit reputation. Every good or bad financial move such as increasing your credit score, dutifully paying your loan dues or failure to repay your loan dues affect not only your credit score but the credit score of people in your network as well.
- Develop good sense of responsibility in handling finances among members. Lenddo doesn’t only provide members with funds, it also helps members become wise spenders by providing them tips on how to effectively manage their finances through its blog service. In fact, they also offer online class for Financial Responsibility that members can avail. A member can increase his credit score upon completion of this class.
As with any lending institutions, this works well for people who are financially responsible. Lenddo gives each member the freedom to determine their own credit standing. And as with any online activity that you will join, you have to be fully aware of its implication to your online reputation and privacy as well.
Although security measures are very much in place, you have to remember that what will make you financially sound and capable in Lenddo (your networks and connections’ personal & professional information) are what might be used against you too in the event that you decide not to complete your loan obligations. In short it requires huge amount of financial maturity and responsibility on your side.
If you ask me if I will recommend Lenddo to you, I would have to say I do as long as you are fully aware of your responsibilities and the possible consequences of your actions if you decide to join the Lenddo community.
Lenddo is changing the landscape of financial lending with its innovative response to the changing needs of financial borrowers. It is a successful union of innovative financial solution and social responsibility. If used prudently and wisely this can work well for most of us.
Lenddo is duly registered at SEC (lending services company) and is covered by this regulation, RA No. 9474.