We are very excited to announce that non-bank loan originator Hipocredit is expanding to Lithuania. Starting today, you can find mortgage backed loans issued in Lithuania on the Mintos marketplace.
The Mintos marketplace will host Hipocredit loans averaging from EUR 1 000 to EUR 100 000 with a loan term of 3 to 60 months. The annual net return to investors is expected to reach 13% per annum. Loans placed on the platform are expected to average EUR 8 000. To align interests with investors, Hipocredit will retain at least 5% of each loan available on the Mintos marketplace as a part of their “skin in the game”.
Hipocredit already places mortgage loans issued in Latvia on the Mintos marketplace. The annual net return to investors has been 13.9%; to date EUR 4.8 Million in loans has been funded through the platform.
Hipocredit clients are primarily private individuals seeking loans for home renovations, major purchases or debt consolidation. These borrowers are often underserved by banks who do not offer comparative loans in the mortgaged backed loan segment or offer unsecured consumer loans that are much more expensive. All Hipocredit Lithuania loan agreements are signed in a face-to-face meeting with the client.
As in Latvia, Hipocredit in Lithuania uses a comprehensive credit scoring system, analyzing information available through various databases, credit bureaus, as well as information provided by clients. Real estate provided as collateral is evaluated by Ober-Haus, the largest real estate agency operating across the Baltic region. Hipocredit expects that the loan acceptance rate in Lithuania will be around 10%, similar to the acceptance rate in Latvia. Hipocredit’s conservative credit policy means that the probability of default is small. Even in the case of borrower default, there is a reasonable chance that the loan will be recovered, given an average loan-to-value of about 60%.
Hipocredit Lithuania’s team has a background in the traditional banking industry, real estate industry and consumer lending business, providing a solid foundation for Hipocredit’s operations.
“We are happy and excited to expand our reach in a new market with lots of potential. We see a high demand for Hipocredit loans, and we are very motivated to add our new branch to the Mintos platform, giving investors even more opportunities to diversify their investments within the Mintos marketplace”, said Solvita Caune, Managing Director of Hipocredit Latvia.
Founded in 2014, Hipocredit is a non-bank financial institution issuing mortgage loans to both private individuals and companies across Latvia and now Lithuania. To date, Hipocredit has issued more than 500 mortgage loans for EUR 5.6 m.
Invest in Hipocredit Lithuania loans.