Team on EstateGuru, an online lending platform that offers retail investors the ability to secure property-backed loans, notes that even though we are in the middle of really hot summer days and the start of the holiday season, there is still a lot of activity on the platform, with in June, 80 loans were financed (total funding amounted to € 15.3 million).
As mentioned in the update from EstateGuru, Estonian and German projects “together accounted for more than 50% of the volume”.
The company also noted that along with such solid sales, loan repayments “remained stable”. During June, our investors “were paid out loans totaling 10.2 million euros”, and “the average return on the repaid portfolio was 10.8%,” the management of the lending platform said.
“The rise in the default rate continued in June as a new market (Spain) was added to our list of ‘countries with at least one credit default’. The unfulfilled Finnish loan, which we mentioned in the report last month (bankruptcy case), will be recovered in the coming weeks, as there were delays on the part of the buyer. In Latvia, two loans (the same borrower and collateral) were successfully repaid in June (0.2 million euros). “
EstateGuru noted in its most recent loan review that ongoing legal disputes “are taking up most of our debt collectors and external partners’ time.” EstateGuru’s internal debt collection system, “from late collection to enforcement, has been designed to be reliable and efficient, but external bureaucracy slows down the recovery process.”
However, this does not change the platform’s goal of lowering the default rate of “below 5.0%”.
EstateGuru said it will inform investors and other users of the platform about the quality of its loan portfolio “on a monthly basis.” If you are interested in learning more about the Estateguru business, you can read their latest annual report. here…
As stated in the report:
- The total volume of financed loans since 2014 – 387.5 million euros
- The total amount of loans repaid since 2014 – 226.5 million euros
- Total outstanding portfolio – € 161.0 million
- Total outstanding loan debt – 14.9 million euros
They also confirmed:
- Total number of outstanding loans – 97
- Default rate (outstanding loans) – 9.2%
- Default rate (total amount of financed loans) – 3.8%
- The total amount of loans repaid – 11.1 million euros
- Total number of Collected loans – 64
- The average return on loans returned is 10.0%.
- The average time from default to recovery is 7.7 months.