The first month of this year saw €16.3M in loans originated via EstateGuru with Estonia and Germany together contributing more than half the total amount of funding.
Due to seasonality, repayments came in at a “modest” at €2.5M, accounting for 23 loans with “an average return of 10.4%.” The team at EstateGuru pointed out that they did not see considerable changes “in late, defaulted, and/or prolonged loans which could have affected repayments negatively.”
During the past month, EstateGuru “fully recovered two loans in Estonia (€0.6M).” The platform moved two loans in Latvia (repayment of €0.2M) “to partially recovered statuses and defaulted the last loans and stages of one Finnish borrower.”
Consequently, the default rate “increased to 7.1%.” EstateGuru further revealed that they are now “in the final stages of selling several collaterals and claims and haven’t changed [their] forecast of a substantial decrease in defaults during the first quarter of 2022.”
As stated in the report (as of Feb 15, 2022):
- Total financed loans since 2014 – 520.4 Million Euros
- Total Repaid loans since 2014 – 294.0 Million Euros
- Total outstanding portfolio – 226.5 Million Euros
- Total outstanding defaulted loans – 16.1 Million Euros
They also confirmed:
- Total number of outstanding defaulted loans – 72
- Default Rate (Outstanding loans) – 7.1%
- Default Rate (total Financed loans) – 3.1%
- Total amount of Recovered loans – 15.2 Million Euros
- Total number of Recovered loans – 96
- Average return rate of recovered loans – 8.9%
- Average time from default to recovery – 8.9 months
- Write-off rate (total financed loans) – 0.008%
Ararat Yuzbashyan, CTO at EstateGuru, recently explained how he aims to improve the lives of his colleagues. Ararat also talked about the advice he would give to talented professionals who are thinking of joining EstateGuru.
Ararat has been working at EstateGuru for around 10 years. He shared that his mission is to make the platform the most successful Fintech in Europe and on a longer timeline, and also the most successful Fintech firm in the world.
Ararat pointed out that his aim is “to assist clients in applying technology to solve their financial operations.” Ararat added that he understands that whenever it comes to finance, “security is a priority, and so [they] are continually improving every aspect of security on the platform.” And also, they try “to make life simpler, more pleasant and more productive for [their] colleagues by introducing automated processes into every department.”
