The lender is officially launching today but has announced it already has $630,000 of lending on its books after months of development and beta testing.

The first loans included residential mortgages and refinanced home loans.

LendMe specialises in secured loans and will deal with amounts up to $2 million. It will most often take first mortgages over property.

Investors can choose to back full loans or parcels of $1000.

Chief executive Marcus Morrison said one of the first loans issued was to a couple with a blemish on their credit record, for a disputed bill of about $400.

They had been paying a high interest rate and rollover fees every six months but LendMe offered them a rate of 8.29 per cent for the loan.

Morrison said that was an improvement on what they were paying and the 30% equity in their property made it an attractive deal from an investor perspective.

The investor would get 7.74% from the deal.

In another case, a couple relying on superannuation for their income were  unable to get a loan from a bank, despite having 60% equity in their properties.

Morrison said they were able to service the loan so it was a safe proposition for investors, too.

Morrison said LendMe had received inquiries through mortgage brokers.

"What mortgage brokers are saying is they are finding it harder to find for certain people a good deal with the mainstream banks and other lenders."

They had indicated there were many more borrowers who would fit the model, he said. "The feedback we are getting from brokers if they have a lot more and their colleagues have numbers of these deals as well."