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We are pleased to announce that there are now even more investment opportunities from Kazakhstan, as micro-loan lender GFM has just launched on the marketplace. You can invest in its loans now and enjoy net returns of up to 18% for Kazakhstani Tenge (KZT) and up to 9% for EUR annually.
Since the establishment in 2007 GFM has constantly facilitated access to microfinance services, thereby gaining more loyalty from its customers. Operating in 3 regions through 20 branches with 83 employees, GFM offers its loan products to more than 10,000 active customers. In the future, it is planned to open branches in all major cities of Kazakhstan.
According to the National Bank of Kazakhstan, GFM has become a top-15 microfinance organization in Kazakhstan in terms of total assets. GFM activities are regulated by the National Bank of Kazakhstan in accordance with the law of the Republic of Kazakhstan “on microfinance activities”. In order to reduce risks, GFM pays great attention to the development of credit products secured by liquid collateral with an average LTV (loan-to-value) ratio of 80%.
GFM issues offline loans via its branch network, which allows for “live” communication with the client. As well as that, for a lot of clients, the very presence of an office in the company testifies to its reliability and makes borrowers feel more confident and safe. The company is focused on building long-term partnerships with customers based on mutual trust, understanding and respect.
GFM on Mintos
Until the end of 2019 GFM had issued more than 37 200 micro-loans worth 8.4 billion KZT (19.7 million EUR). At the end of December 2019, GFM had an outstanding net loan portfolio of KZT 2.5 billion (EUR 5.8 million).
On Mintos, GFM offers short-term Kazakhstan-issued loans for investment with a maturity of up 12 months and the average loan amount of KZT 180 000 (EUR 426).
All loans placed on Mintos by GFM have a buyback guarantee and will be repurchased if the loan is delinquent for 60 days or more. To align its interests with those of investors, the company will keep 10% of each loan on its balance sheet in order to maintain its skin in the game.
“Mintos is one of the most advanced platforms of its kind and offers Loan Originators access to an impressive number of investors from a range of countries around the world. Additionally, Mintos is already used by many big and reputable Loan Originators operating worldwide.”, says Makhsat Dauletaliyev, Chairperson of the Management Board.
To obtain exposure to GFM LLP loans, investors will be able to invest in loans issued by Mintos Finance to GFM LLP, where repayments depend on the borrower’s payments. Each loan issued by Mintos Finance to GFM LLP will be pegged to a respective loan issued by GFM LLP to the final borrower. Mintos Finance is a Mintos group company. A detailed description of the new structure is available in the Mintos Finance loan agreement and assignment agreement.
This is a great opportunity to diversify your portfolio and invest in GFM loans secured by liquid collateral listed in KZT. If you use Auto Invest to streamline your investment strategy and want to invest in loans from GFM, don’t forget to update your settings!
Click here to see GFM loans on the Primary Market