Online Lender EstateGuru Reports that Estonia and Germany were its Most Active Markets in May 2021

The team at Estateguru, an online lending platform that offers retail investors the ability to back loans secured by property, reveals that it financed €16.8M worth of loans last month.

As mentioned in EstateGuru‘s loan portfolio overview report, the most active markets were Estonia and Germany – with reported loan volumes of €6.8M and €5.0M, respectively.

As noted in the update from EstateGuru:

“Despite the fact that the holiday period has started, we still expect the monthly funding levels to remain at over €15.0M as healthy demand in the real estate market supports the need for loan capital.”

EstateGuru platform borrowers repaid a total of €8.9M of loans (total of 98 loans with an average return of 10,8%) during the month of May.

The company also noted that during the last months, their monthly repayment amount has been almost 2x lower than the financed loan amount. According to the firm, the main reason is “the growth of the German market, where the portfolio is young and maturity dates have not yet been reached.” As noted in the report, a positive aspect related to this is that their “late and defaulted loan portfolio has not increased (which means no negative effect on the repayments).”

The EstateGuru team pointed out that the default rate surged to 8.2% and they now have “the first defaulted case in Sweden.”

One Finnish defaulted loan “will be recovered in June as we have accepted an offer from an investor who will buy our assets from the bankrupt estate,” the company confirmed while adding that the Latvian market has now stabilized – “the late loan amount is below 4% and there have been no new defaulted loans in the last two months.”

As mentioned in the report from EstateGuru:

“One of the Estonian defaulted loans, where we waited for repayment (successful auction), has now been recovered (€0.2M). Also, two other recoveries (total €0,2M) occurred in Estonia during the past month.”

As stated in the report:

  • Total financed loans since 2014 – 375.4 Million Euros
  • Total Repaid loans since 2014 – 217.7 Million Euros
  • Total outstanding portfolio – 157.7 Million Euros
  • Total outstanding defaulted loans – 12.9 Million Euros

They also confirmed:

  • Total number of outstanding defaulted loans – 94
  • Default Rate (Outstanding loans) – 8.2%
  • Default Rate (total Financed loans) – 3.4%
  • Total amount of Recovered loans – 10.6 Million Euros
  • Total number of Recovered loans – 62
  • Average return rate of recovered loans – 9.9%
  • Average time from default to recovery – 8 months
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