By Guglielmo de Stefano on Wednesday 17 February 2016
Neyber – an online lending solution for employee loans – reports great results.
London-based online lending platform Neyber announced today the increase of its loan book by 40% in January 2016 - to £10million. The platform also says that it plans to lend over £100m throughout the UK over the course of this year. The announcement follows on from the successful closure of a £6m Series A funding round, a month ago.
Officially launched last January, Neyber allows employers to offer affordable loans to their employees. Unlike other lenders, the platform claims to look beyond credit scores, taking into account users’ employment status and financial situation.
To guarantee the repayments of loans, Neyber employs an innovative technology – the result of heavy investments in technology and R&D - based on a salary deduction mechanism, which integrates into an employer’s payroll systems. In effect, users will be able to repay their loans through a simple salary deduction.
The platform says that loan terms are completely confidential, and it won’t disclose to employers how much is borrowed. Interest rates are advertised at 4.9% APR, with loan size ranging from £500 to £25,000.
The service is completely free for employers. When an employee leaves, Neyber will transfer any outstanding loan repayments onto user’s direct debit.
According to the company, the fast growth rate of its loan book comes in the part because of a tie up with Police Mutual – a company that has been assisting officers, staff and their families with their finances for over 140 years. Before the official launch, the platform lent £8m to the police force via that agreement.
Neyber co-founder and chief strategy officer, Monica Kalia, commented:
“The speed of Neyber’s growth is a clear indication that there is a space in the market for our ground-breaking proposition. The ease of use of our unique platform for employers and employees alike coupled with the increasing need to improve financial wellbeing in the workplace are testament to the fact that our loan book has significantly increased in such a short space of time.”
Will Neyber be able to cross the £100m mark at the end of the year? We’ll definitely continue to keep an eye out for the growth of this new UK player.