Lendsqr Launches N1 Billion On-Lending Initiative to Boost Nigerian Lenders
Lendsqr, a leading loan management software provider, has introduced an on-lending initiative aimed at boosting the capacity of Nigerian lenders to extend credit to their customers. This new initiative will set up a N1 billion line of credit, targeting lenders with state moneylender or cooperative licenses, allowing them access to the capital needed for sustainable growth and expansion.
Adedeji Olowe, CEO of Lendsqr, emphasized the need for more than just cutting-edge technology to help lenders thrive. “For a long time, we believed providing top-tier lending technology was enough to help lenders scale. But technology alone cannot scale a loan business without adequate capital. That’s why we decided to go a step further and solve this critical need,” Olowe stated.
The initiative also aims to support digital lenders facing challenges in securing loan capital. With a surge in personal loans—up 29.28% year-on-year, reaching N7.52 trillion in March 2024—there’s a growing demand for credit, largely fueled by loan apps. In fact, the number of loan apps in Nigeria skyrocketed from 173 in April 2023 to 311 by September 2024.
Why Lendsqr’s Initiative?
As the need for credit increases, Lendsqr’s on-lending initiative comes at a crucial time. According to Gbemi Adelekan, President of the Money Lenders Association, “Demand for loans has doubled due to the economic hardship in the country. Many people are turning to loan apps.”
Recent reports further underscore the widespread reliance on loan apps in Nigeria. A study by Piggyvest revealed that 40% of Nigerians are in debt, with 26% owing to loan apps. Additionally, research from SBM Intelligence shows that 27% of Nigerians across various income categories now turn to loan apps to manage living expenses in the face of record inflation.
Lendsqr’s new initiative will address the immediate funding gaps for lenders aiming to scale their businesses and reach more customers. “We’re thrilled to be a catalyst for growth in Nigeria’s lending sector,” said Joy Bello, Head of Sales at Lendsqr. “This initiative is about more than providing capital. It’s about building a stronger, more inclusive financial ecosystem where every licensed lender, big or small, can thrive.”
With this N1 billion on-lending fund, Lendsqr is poised to play a vital role in expanding credit access, driving financial inclusion, and supporting the growth of Nigeria’s lending industry.
Apply here to be a part of Lendsqr’s initiative.
