LNDDO Digital Lending Limited is the region’s first licensed fintech digital lender dedicated to offering financial support to SMEs across the UAE.
“The SME segment in the UAE is severely underbanked, with only 5 percent of bank loans going to the sector,” shared Ashraf Ghazaly, co-founder and CEO of LNDDO, in an interview with Arabian Business.
More than 94 percent of companies in the country are SMEs, employing 86 percent of the private sector’s workforce, according to statistics by the UAE’s Ministry of Economy.
“Since SMEs contribute about 60 percent of the GDP, there is a huge credit gap demand amounting to roughly $150 billion. Therefore, offering inclusive financial services for the thousands of SMEs in the UAE, and the millions in the MENA region, is our primary objective.”
Officially authorised and regulated by the Financial Services Regulatory Authority (FSRA) under Abu Dhabi Global Market (ADGM) jurisdiction, LNDDO offers unique credit services designed to empower SMEs and encourage them to realise their full potential.
Providing loans for small businesses with a quick and easy approval process, it gives entrepreneurs the capital they need to expand their businesses, even if they do not have audited financial statements.
“Our product offering uses the same model that has already had great success in other countries like India, the USA, and the UK. We wanted to bring this service to the UAE through a fully digital app-based approach,” said Ghazaly.
“We chose the UAE because it has a favorable ecosystem, and it is relatively easy to do business here. UAE SMEs are also very digitally savvy and have embraced the significant growth of digital payments and online apps wholeheartedly – we expect this market to develop even more in the post-covid.”
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Ashraf Ghazaly, co-founder and CEO of LNDDO.
Traditionally, the process of applying for an SME loan in the UAE is lengthy, taking from six to eight weeks and requiring reams of documentation. However, LNDDO reduces the loans decision process to a matter of minutes, where funds can be disbursed and made accessible within one week.
Talking more about the loans decision process, Ghazaly said: “LNDDO uses a combination of data that is procured through its online customer onboarding process, its strategic ecosystem partners, and overlays from the credit history in order to analyse the customer and provide loan approval within minutes.”
“LNDDO’s AI-driven credit engine can instantly qualify customers, and the entire disbursement process takes seven to 10 days compared to the six to eight weeks for traditional lenders.”
Providing easy repayment options, the loans are suitable for digitally forward SMEs in various sectors, provided they have been operating for a minimum of 12 months.
LNDDO plans to launch first in the UAE and then expand into Saudi Arabia and Egypt in 2022, with the goal of disbursing over 100,000 loans over the next five years through its platform.
“We also aim to have a 100 percent digital application process, with the ultimate goal of being able to disburse funds within 24 hours to eligible borrowers. This will then totally eliminate any delays in SMEs achieving their aspirations and goals,” added Ghazaly.
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