How do borrowers use FundColony’s marketplace?

To list a personal loan in the marketplace, Borrowers complete a 100% online application via FundColony via our app or website. As a responsible lender, FundColony runs a bespoke credit screening on all applications to access the creditworthiness and affordablity of the loan for the borrower.

Once approved, the loan is listed in the marketplace with anonymous information about the borrower and loan purpose enough to explain what the borrower will use the money for. The loan purpose will help lenders to decide whether to invest in that loan or not.

How it works

FundColony is marketplace where people and organisations directly lend to individuals and small & medium sized businesses in Nigeria, helping support the core the economy. FundColony sources the same information on borrowers that banks use from sources like credit bureaus. Borrowers are identity checked and our experienced credit assessment team review all applications before they are posted onto the marketplace.

We only allow established and creditworthy borrowers into the community. Investors then lend directly to borrowers, spreading their money across several borrowers to spread their risk. Individual investors will typically fund a small proportion of each loan on the marketplace, whereas larger accredited investors will fund an entire loan on the marketplace.

FundColony then manages the monthly repayments from the borrowers back to the investors. FundColony also provides account management and reporting tools for investors. If payments are missed FundColony in-house collections and recoveries team will chase borrowers.

Businesses can borrow from lots of different investors or from one larger investor offering them the whole amount. Interest rates are set by each investor based on a few factors including the risk band and term of the loan. The risk band is given to the loan during FundColony credit assessment.

We help our borrowers get a fair deal and our lenders get better returns on their investment.