LendPlus

Understanding LendPlus: Company Overview and Background

LendPlus, legally known as Aventus Technology Limited, is a digital credit-only lender that commenced its operations in Kenya in late 2020. It is a wholly-owned subsidiary of the Lithuanian-headquartered Aventus Group, a European pioneer in online lending since 2009. This strong international backing provides LendPlus with robust financial technology and credit assessment capabilities tailored for the Kenyan market.

The company operates under the regulatory framework of Kenya's Central Bank (Amendment) Act 2021, ensuring its services adhere to local financial regulations. LendPlus's business model is centered on providing unsecured consumer loans through its digital platforms. It targets Kenyan residents aged between 23 and 62 years who possess a stable income, whether from formal employment or self-employment. The core aim is to address immediate liquidity needs, such as managing emergencies, settling bills, or providing capital for micro-businesses, through swift and accessible financing.

Loan Products, Interest Rates, and Repayment Terms

LendPlus primarily offers personal loans that are unsecured and designed for short-term repayment periods. These loans are accessible through its dedicated mobile application and website, emphasizing convenience and speed.

Loan Amounts and Terms

• Standard Loan Range: Borrowers can access amounts from KES 1,000 up to KES 100,000. This range caters to a broad spectrum of short-term financial needs, from small daily expenses to more substantial personal or business requirements.
• First-Time Promotional Offer: For new users, LendPlus has reportedly offered a promotional loan of KES 1,000 to KES 30,000 with a 0% interest rate for the first five days. While this can be an attractive entry point, borrowers should always verify current promotional terms directly through the app before applying.
• Repayment Tenors: The standard repayment period for LendPlus loans ranges from 7 to 61 days. This short-term nature aligns with the company's focus on addressing immediate financial gaps. The company also allows for loan extensions, potentially extending the repayment period beyond 90 days, though this comes with rolling interest accrual.

Interest Rates and Fees

The interest rates for LendPlus loans are expressed as a daily nominal rate, ranging from 0.9% to 2.2%. This translates to an approximate monthly rate of 27% to 66% (per 30 days). When annualized, the Annual Percentage Rate (APR) could be in the range of 300% to 700%. It is crucial for borrowers to understand that these rates are high, typical of short-term, unsecured digital loans in the market.

Regarding fees, LendPlus states that any origination or processing fees are already incorporated into the daily interest rate. Information on specific late-payment penalties is not extensively detailed publicly, but typically, late payments incur additional interest accrual or a fixed penalty fee. Repayment is primarily made in a single installment at the end of the loan term via popular mobile money platforms like M-Pesa or through bank transfers.

Application Process, Mobile App Experience, and Regulatory Compliance

The application process for a LendPlus loan is entirely digital, designed for speed and ease of access. This digital-first approach is central to its operational model.

Application and Onboarding

• Channels: Applications are primarily made through the LendPlus Android or iOS mobile applications. A dedicated website also serves as an application portal.
• Key Requirements: To apply, individuals must be Kenyan citizens aged 23 to 62, possess a valid Kenyan National ID, and have an active mobile phone number.
• Credit Assessment: LendPlus employs an automated credit scoring algorithm. This system leverages submitted personal data, analyzes SMS transaction history (particularly for Samsung Galaxy users), and utilizes geo-location data to assess a borrower's creditworthiness. This approach allows for rapid credit decisions, often within minutes.
• Disbursement: Upon approval, loan funds are disbursed quickly, typically within 1 to 15 minutes, directly to the borrower's M-Pesa account. Bank transfers are also an option, but cash payouts are not supported.

Mobile App Features and User Experience

The LendPlus mobile application is a cornerstone of its service delivery. With over 100,000 downloads on Android and strong ratings on both Google Play (4.0 stars) and the Apple App Store (4.5 stars), the app offers several features aimed at enhancing user convenience:

• Real-time Loan Tracking: Users can monitor their loan status and repayment schedule.
• Loyalty Rewards: The app incorporates a loyalty program to incentivize repeat borrowers.
• Credit History Dashboard: Borrowers can view their borrowing history and credit standing with LendPlus.
• Customer Support: In-app chat is available for immediate assistance, complemented by email support.

Customer reviews generally praise the app's speed and the flexibility of loan terms. However, some users have noted occasional delays in customer support response times and concerns regarding the high APR for longer loan tenors or extensions.

Regulatory Status and Market Position

LendPlus, through Aventus Technology Limited, is a licensed credit-only lender under the Central Bank (Amendment) Act 2021, signifying its adherence to Kenya's financial regulations. The company has not faced any public penalties or enforcement actions, indicating a commitment to compliance. It also emphasizes transparent terms through its "View Final Terms" feature within the app and maintains a privacy policy compliant with Kenyan data protection laws.

In the competitive Kenyan digital lending market, LendPlus stands alongside prominent players like Tala, Branch, Okash, and Zenka. Its differentiation often lies in its rapid disbursement capabilities, loyalty programs, and its advanced credit assessment technology, which includes specific parsing of SMS inbox data for enhanced risk profiling. While its exact market share is not publicly disclosed, its growth trajectory is supported by partnerships, notably with PeerBerry for investor funding, and its parent group's vision for expansion into broader East African markets.

Practical Advice for Potential Borrowers

For any Kenyan considering a loan from LendPlus, or any digital lender, a thoughtful and informed approach is essential. Digital loans, while convenient, carry specific responsibilities due to their nature and cost.

1. Understand the Total Cost: Always examine the "View Final Terms" section in the LendPlus app before accepting a loan. Pay close attention to the daily interest rate, the total amount repayable, and the effective Annual Percentage Rate (APR). High APRs are common in short-term digital lending, so ensure you can comfortably afford the repayment.
2. Borrow Responsibly: Only borrow what you genuinely need and are certain you can repay within the stipulated timeframe. Avoid taking out new loans to repay existing ones, as this can lead to a debt spiral.
3. Compare Options: While LendPlus offers competitive features like loyalty rewards and quick disbursement, it is wise to compare its rates and terms with those of other licensed digital lenders in Kenya. Different lenders may suit different borrowing needs and risk profiles.
4. Check Customer Support: Before committing, test the customer support channels. A responsive and helpful support team can be invaluable if you encounter any issues during your loan term.
5. Guard Your Data: Understand LendPlus's privacy policy, especially concerning the optional access to SMS inbox data and geo-location. While these help with credit assessment, be aware of what information you are sharing.
6. Plan for Repayment: Mark your repayment date clearly and ensure you have sufficient funds in your M-Pesa account or bank account to avoid late payment penalties and maintain a good credit record.

LendPlus offers a viable solution for immediate financial needs in Kenya, backed by robust technology and international experience. However, like all financial products, it requires careful consideration and responsible usage to serve its purpose effectively without creating financial strain.