Press Release: Rocket Internet targets market for peer-to-peer lending with the launch of Lendico

Lendico is a Digital Alternative to Banks; 2.99% Starting ARP; Attractive Returns for Investors.

01 DECEMBER 2013, BERLIN, GERMANY
Summary
Lendico enables quality borrowers to get loans at interest rates as low as 2.99% // In-house designed formula to evaluate each borrower’s credit risk // Cooperation with renowned partners and a German bank // Rocket Internet-rollout: starting point in Germany and fast internationalization to come

Berlin, 1.12.2013 - Today, Berlin-based Lendico.de launched its service offering peer-to-peer lending in Germany. “From the start, Lendico was developed as the digital alternative to banks,” says co-founder and CEO Dr. Dominik Steinkühler. “We challenge the monopolistic situation in the loans business. Lendico is a new way of financing personal loans and a new asset class.”

Lendico relies on an in-house designed formula to evaluate each borrowers credit risk and to set the loan rates in real time. Better rates and better returns, however, are not contradictory for Lendico: “We have established high quality standards when it comes to selecting borrowers, as we always keep the interest of investors in mind”, adds Dr. Dominik Steinkühler.

“In Germany the volume of outstanding consumer loans and overdrafts currently stands at €200 billion - credit costs have a tremendous importance for consumers. 1% less in rates would mean two billion euros more in the consumer’s pockets," says Dr. Dominik Steinkühler. The model’s transforming power is currently being experienced in the United States. In 2013, for example, only two companies accounted a loan volume of USD 275M - a growth of 174% compared to the same time last year.

In future, Lendico plans a rapid international expansion launching into several new countries in the upcoming weeks and months. The company was founded in Berlin (Germany) in 2013 by Dr. Clemens Paschke, Philipp Petrescu, Dr. Christoph Samwer and Dominik Dr. Steinkühler Currently, Lendico employs more than 50 people with diverse backgrounds in the banking, design and start-up industry. The team consists of employees of renowned companies and banking firms. Dominik Steinkühler: “When you sign a board member from a German bank for a startup, you know: There is something to the business model.

For more information, please visit lendico.de


How the Lendico process?
Borrowers apply for loans at Lendico.de for free. Lendico evaluates the creditworthiness and offers an interest rate starting at 2.99%. Investors open an account and start looking for projects and building their Lendico-portfolio. They can invest in projects starting at 25€. Once completed borrowers get their loan and start making fixed monthly payments. Investors get a monthly repayment from every single of their projects.

The conditions at Lendico
2.99% starting APR for best borrowers
No hidden fees
Loan volume : 1.000 € to 25.000 €
Duration 24 to 60 months
Yield up to 10.44 %
Minimum investment : € 25

Simple cost structure

Free credit request and account management
Service fee for investors : 1% of each repayment
Origination fee for borrowers : 0.50 % to 4.50% determined by the loan grade
Additional free services: counselling and early repayment of the loan amount

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About Rocket Internet

About Rocket Internet

Rocket Internet incubates and invests in Internet companies with proven business models. It provides operational support to its companies and helps them scale internationally. Rocket Internet focuses predominantly on four industry sectors of online and mobile retail and services that make up a significant share of consumer spending: Food & Groceries, Fashion, General Merchandise and Home & Living. Rocket Internet’s selected companies are active in a large number of countries around the world with more than 28,000 employees. Rocket Internet SE is listed on the Frankfurt Stock Exchange (ISIN DE000A12UKK6, RKET). For further information please visit www.rocket-internet.com.

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