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Lendwise launches innovative ISA offering returns of up to 12%

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Lendwise, the UK’s leading peer-to-peer education finance specialist, has launched a new innovative finance ISA (IFISA) for investors.

The IFISA has been launched followed a successful trial period and has a minimum investment requirement of £1,000.

Lenders are able to diversify their investments and define their own risk appetite in terms of target interest rates.

As of today, active lenders on Lendwise’s platform have returns ranging from some 4% to 12%.

The wrapper will exempt individual investors from income tax on interest arising from loan investments of up to £20,000 each tax year, subject to other ISAs they may have.

Loan investments into the IFISA will fund the platform’s flexible, fixed-rate loans to postgraduate students and borrowers undertaking other professional qualifications.

Lendwise launched in 2018 and introduced its secondary marketplace the following year to give investors the option to sell part or all of their loan before it reaches maturity.

In the three years since inception, the business has grown significantly with the volume of loans originated in the first three quarters of 2021 alone surpassing the total number for 2020.

Demand from postgraduate student has increased sharply during the pandemic as lockdown reduced their opportunities to generate income from part-time work.

Rishi Zaveri, Co-Founder and Chief Executive of Lendwise says: “The launch of our IFISA forms part of the evolution of Lendwise and our offering to lenders on our platform.

“Demand from P2P investors has continued to rise and been supported by the recent withdrawal from the retail space of other P2P lending platforms.

“The option to achieve strong returns in a tax-efficient wrapper that offers exposure to education finance, specifically the funding of postgraduate students, is a truly unique offering.

“We are extremely proud to be the only peer-to-peer platform in the UK funding the education of ambitious individuals who have the merit and ability, but not all of the funds, to achieve enrolment.

“We analyse our borrower’s future earnings potential and other outcomes when assessing their creditworthiness, not just their credit score. They have also proven a greater ability to repay their loans due to their enhanced skills and career prospects.

“For investors, getting this type of differentiated exposure in an IFISA which delivers above market yields, has never been as easy as it is with a Lendwise IFISA.”

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