We are happy to share this delightful progress update from EdFin, supported by their intermediary Red Hat Impact.
Who is EdFin?
EdFin is a profit for purpose company that provides education related lending to international students. This lending relieves students of some of the challenges they face when they study abroad, including financial stress and social isolation. Their LendForGood impact loan was raised to enable EdFin to keep up with student demand until they are able to source a larger line of capital to underwrite their loan book.
Check out their original campaign with LendForGood here.
What have EdFin been up to?
We are pleased to provide an update on the performance of our loan book portfolio, which continues to demonstrate strong momentum and robust growth. To date, we have funded a total of $1.385 million across 193 loans, showcasing both scalability and sustained demand for our financing solutions.
The portfolio maintains a healthy balance, with $481k currently outstanding across 95 loans, yielding an impressive 23.56% return. This robust yield highlights the portfolio’s strong performance and the favourable market conditions we are capitalising on. The average loan balance stands at $5k, reflecting our strategy of offering manageable loan sizes that empower borrowers while ensuring a sound risk profile. Loan terms are typically structured at 9 months, aligning well with borrower repayment capacities.
One of the key indicators of our portfolio’s success is its turnover, which has reached nearly 3x over the past 12 months. This demonstrates the portfolio’s strong liquidity and the ability to quickly recycle capital, driving increased returns and enabling the continued deployment of funds into high-demand markets
Our portfolio remains highly diversified geographically, with strategic exposure across key emerging markets. The breakdown is as follows: 55% in Kenya, 10% in Zimbabwe, 10% in Nigeria, 5% in the South Pacific Islands, and 5% in Southeast Asia (Philippines and Nepal). This broad geographical spread ensures a well-balanced portfolio, with the flexibility to absorb market fluctuations and capitalise on growth across regions.
Furthermore, we continue to maintain a 50-50 gender distribution within the portfolio, ensuring diversity while empowering both male and female borrowers to achieve their goals. This balanced approach not only aligns with our commitment to gender equality but also helps to create a more resilient and equitable loan book.
A key focus of the portfolio is on borrowers pursuing healthcare-related education while working part-time in the care economy. This represents a growing and vital sector, with global demand for healthcare professionals continuing to rise. By supporting students who are training for careers in healthcare, we are not only investing in the future of essential industries but also empowering individuals to improve their socio-economic standing.
In conclusion, the portfolio is performing strongly, with attractive yields, robust turnover, and strategic diversification across both geography and gender. As repayments continue and capital is reinvested, we anticipate further growth in returns and long-term portfolio strength. We are confident that the combination of strong financial performance, sectoral focus on healthcare education, and a diversified approach will continue to create value for our investors and contribute positively to emerging markets and global development.
LendForGood is a crowdlending platform and global community of individuals and organisations collaborating to mobilise millions in impact capital for courageous impact enterprises.
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