Romanian alternative lending company Extra Finance has started a new line of business financing small- to medium-sized residential real-estate projects. Extra Finance will offer these loans to investors on the Mintos marketplace.
“The new line of business is growing rapidly. Last year, we financed real estate projects worth more than one million euro. This year, we have already funded projects worth three million euro. We aim to finish 2017 with close to five million euro in financing to nine projects,” says Stefan Dumitru, co-founder and CEO of Extra Finance.
On average, projects financed by Extra Finance amount to EUR 0.8 million and have a one year repayment term. Prior to granting financing, all projects are carefully assessed and verified by an external real-estate company.
New loans listed by Extra Finance on the Mintos marketplace will have an interest rate of over 12% and a minimum of 10% skin in the game.
“By opening a new line of business, we are now in the market for all types of lending — small online loans from EUR 100 to EUR 500, personal loans with mortgages from EUR 5 000 to EUR 80 000, and now also small development loans of EUR 250 000 and more. This makes Extra Finance the only alternative lending company in Romania to offer a full range of financing products,” underlines Stefan Dumitru.
Extra Finance is a Romanian non-banking lender that has been operating for more than eight years. The company has branches in two Romanian cities. Last year, Extra Finance had a revenue of EUR 20.5 million, with a net profit slightly below the EUR 2 million mark. Their loan portfolio was EUR 14.6 million.
Extra Finance joined the Mintos marketplace at the beginning of 2017. So far, the company has financed loans worth more than EUR 300 000 through the marketplace.