Lendy seeks to reimagine how finance can serve people who are excluded from traditional credit systems.
Its mission is to alleviate poverty and improve global quality of life by creating a scalable infrastructure for
income contingent loans (ICLs), a financing model where repayments are linked to a borrower’s income rather than rigid schedules.
Traditional credit relies on collateral, credit history, and fixed repayments; barriers that exclude low-income individuals.
ICLs reverse this dynamic by:
- Tying repayment to income: Borrowers only repay when they earn above a threshold.
- Reducing default risk: Since repayments adjust with income, the chance of catastrophic default is minimized.
- Preserving dignity: No repossessions or predatory collections; borrowers can participate in education, housing, or micro-enterprise opportunities without fear.
- Unlocking access to essentials: Education, housing, and health investments become feasible for populations who otherwise face financial exclusion.
