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The Mintos team is very pleased to announce that Lithuania’s subsidiary of Omega Laen – Kredito garantas – has joined the Mintos marketplace, where they will offer personal mortgage loans.
Kredito garantas will offer low-risk loans for financing in the marketplace. These loans will primarily range from EUR 1 500 to 40 000, with repayment periods from 6 months to 10 years. As these are low-risk loans – guaranteed with real estate collateral in Lithuania’s largest cities – the average net annual return is expected to be approximately 8%. In order to retain “skin in the game”, Kredito garantas will keep at least 10% of each loan put on the Mintos marketplace on its balance sheet.
Kredito garantas started operations in 2011. They are currently one of the fastest-growing nonbank mortgage lenders in Lithuania with offices in the country’s largest cities — Kaunas, Klaipeda and Vilnius. Loans are also granted in Siauliai and Panevezys.
Kredito garantas has a conservative loan policy. When assessing loan applications, the company seriously analyzes property values and liquidity, so that in the case of a loan default, the property can be easily sold and the loan recovered. The loan may not exceed 50% of the property value. An independent evaluator handles nonstandard real estate valuations. To date, Kredito garantas has recovered all overdue loans in which the borrower has been unable to meet their obligations.
The Omega Laen group, of which Kredito garantas is a subsidiary, has been growing quickly. Its credit portfolio has almost doubled over the past two years, reaching EUR 8.3 million. Over the last four years, the Omega Laen group has granted EUR 16 million in loans. The company has financed approximately 75% of these loans from their own equity or loans issued by company’s owners. Omega Laen also grants loans in Poland.