The latest news at fintechwebnews.co.uk is that British fintech start-up Neyber has secured £21m in funding for their loan granting company. The funding has come from quite an unusual place. Several thousand police officers, two former Goldman Sachs executives, and an Indian investment company have teamed together to invest in the company.
What do 5000 policemen, former banking execs, and Indian investors have in common?
They make up Neyber, which provides loans that are repaid out of people´s salaries. The 2 former Goldman Sachs executives that started the company, Martin Ljaha and Monica Kalia, left Goldman Sachs almost 5 years ago.
The Indian investment group, Wadhawan Group, is a leading investor in the UK fintech sector, leading Neyber´s latest £21m cash injection. Neyber provides loans for approximately 5000 police officers. It has provided more than £65m in just over two and a half years, helping many people to buy properties. The Police Mutual was an initial investor in Neyber and provides it with money to fund it´s loans to police officers up and down the UK.
Next steps for Neyber
Here at fintechwebnews.co.uk we have found that Neyber´s goal is to launch it´s own savings product by combining loans with tax-free ISAs that it could offer employees who want to earn higher returns on their hard-earned money. The company´s interest rates come in three different bands;
- ´Great´charging – just 4.9% annual interest;
- ´Good´charging – 6.9% annual interest;
- ´OK´charging – 9.9% annual interest.
They claim that they can save the average borrower a fifth on their existing debt repayments. They also aim to educate people in the ways of finance, improving their scores from ´OK´ upwards. By cutting out the middle man when lending, the company can offer better interest rates and even provide education.
Neyber can also grant a higher percentage of personal loans as there is less risk when making deals with an individual´s employer rather than just with the individual. When dealing directly with employers, there is also a larger amount of information to be gathered from the lender.
The company claims that because of this stability, there have just been thirty defaults on over 7000 loans they have granted. For regular news check back with us at fintechwebnews.co.uk.