The team at European online lender EstateGuru notes that during 2021, they have primarily focused on developing their loan origination tech and hiring new loan managers and credit analysts.
This has helped them to support the relatively high volume of loan projects while maintaining a solid risk-return ratio in service of their growing investor base.
Germany, which is EstateGuru‘s largest market, “contributed €8.9M of funded loans, followed by Estonia (€4.2M) and Finland (€3.5M).” The repayment amount in November “was €10.2M (total of 86 loans with average return of 9.3%).” Their investors’ outstanding loan portfolio “has reached a new height of €209M.”
The company confirmed that they are “waiting to receive repayments/partial repayments of three defaulted projects in Estonia (total of €0.5M) where auctions/sales have been successfully concluded.”
In Latvia, the firm will “register a partial repayment (€0.1M) of one loan project over the coming days.”
In Finland, Sweden and Spain, the company is “conducting negotiations with potential investors who are interested in buying the claims of our defaulted loans.”‘ The default rate has “decreased to 7,7%,” the team at EstateGuru noted.
As stated in the report:
- Total financed loans since 2014 – 484.0 Million Euros
- Total Repaid loans since 2014 – 275.2 Million Euros
- Total outstanding portfolio – 208.8 Million Euros
- Total outstanding defaulted loans – 16.1 Million Euros
They also confirmed:
- Total number of outstanding defaulted loans – 88
- Default Rate (Outstanding loans) – 7.7%
- Default Rate (total Financed loans) – 3.3%
- Total amount of Recovered loans – 13.6 Million Euros
- Total number of Recovered loans – 89
- Average return rate of recovered loans – 9.4%
- Average time from default to recovery – 9.2 months
- Write-off rate (total financed loans) – 0.008%
Mihhail Onohhov from EstateGuru recently revealed that the real estate sector continued to experience steady gains across Europe during 2021.
EstateGuru also explained how to determine potential risks when making P2P lending and investing decisions.
As reported in early November 2021, EstateGuru, an online investment marketplace that matches borrowers to investors with secured debt securities, has topped 100,000 investors, according to a post by its Chief Operating Officer. Mihkel Stamm, who is a member of the Board as well as COO of the firm.