EstateGuru, an Estonia-based peer-to-peer lender facilitating secured lending, revealed that it closed 2020 with strong results and performance in December, during which investors in the platform funded a total of $ 18.3 million. euros in loans. EstateGuru confirmed in its overview of the loan portfolio for December 2020 that the largest contributions came from Estonia (8.5 million euros), Germany and Finland (combined total of 6.9 Million euros).
The P2P lending platform also mentioned that overall, their service facilitated 120.2 million euros in loans last year, which is notably a 50% increase over 2019 figures ( 80.3 million euros).
During the fourth quarter of 2020, borrowers on EstateGuru reimbursed 133 loans (30.4 million euros) with “an average yield of nearly 11%”. Following the second wave of COVID-19, the EstateGuru team saw a “slight increase in repayment delays”. However, the platform’s loan portfolio is quite healthy and the P2P lender does not expect “any significant negative change in borrower payment behavior”.
In December of last year, there were reportedly two collections via the EstateGuru platform – one in Estonia (0.25 million euros) and one in Latvia (0.16 million euros). Last year, the P2P lender’s risk department “recovered a total of 5.2 million euros in loans.” As expected by the platform’s management, the default rate “fell to nearly 5% at the end of last year”. And at the end of 2019, the default rate stood at 6.9%.
The EstateGuru report further Noted:
“The good results in debt management were positively affected by the restructuring of the risk department (a new credit risk team with a more focused approach) and the active sales of problematic collateral. In addition, at the end of 2019, we improved our credit policy (with a more robust view of borrower analysis and collateral), which resulted in fewer problematic loans in 2020. We are proud that our collection partner of external claims in Latvia recovered the first overdue loans. for us and that we have now signed the default lawyer partnerships in each country where we operate.
Last year, the EstateGuru team “learned that patience in dealing with overdue loans is one of the most important factors if we are to recover loans without capital loss for investors.” While the portfolio of overdue loans grew dramatically during the first wave of the coronavirus pandemic, the EstateGuru team says it “has not rushed to enforce the law in most cases and has gave borrowers more time to repay “. This has led to “more voluntary sales of collateral and collections with higher returns”.
EstateGuru also mentioned:
“In 2021, we will focus on maintaining the same pace of recovery and focus more on long-term failures. Our customer support and debt collection specialists strive to improve investor loan updates. In general, we do not see any significant negative changes in the loan portfolio in the coming year. “