We have received a lot of feedback from investors about... Read more →
At Mintos, we want to give you as many investment opportunities as possible. That’s why today we are pleased to welcome a new loan originator to our marketplace, short-term Ukrainian lender Alexcredit.
Established in 2017, Alexcredit is a leading presence in the Ukrainian online microcredit market. Thanks to its credit scoring algorithm, which is based on the application form details, behaviour data and credit bureau data, borrowers receive a credit decision in less than 20 seconds. From the total loan applications, 20-30% of requests are approved.
Since its inception, Alexcredit has managed to attract 119,575 customers. However, this number is growing quickly as the company services around 10,000 new customers each month. The average borrower of the company is between 18 to 65 years of age, who want fast access to financial services.
As of March 2019, the loan originator has issued 338,144 loans worth more than UAH 740.9 million (around EUR 23.9 million). The company operates under the Ukrainian National Commission for the State Regulation of Financial Services Markets.
“Why do we want to join Mintos? We have the technology, we understand the market, we have created a brand and we deliver great financial results. Together with Mintos we can scale faster and reach outstanding results!” said Egorov Vadim, Director of Alexcredit.
Alexcredit on Mintos
Ukraine-issued short-term loans from Alexcredit are listed in EUR on Mintos and range from EUR 50 to EUR 325 with a maturity of 25 days. You can expect an average net annual return of up to 13%.
All Alexcredit loans are secured with a buyback guarantee. This means, should a loan be delinquent for 60 days or more, it will be repurchased by the loan originator. Furthermore, in order to keep its skin in the game, the company will keep 10% of all loans placed on the marketplace on its balance sheet.
To obtain exposure to Alexcredit loans, investors will be able to invest in loans issued by Mintos Finance to Alexcredit, where repayments depend on the borrower’s payments. Each loan issued by Mintos Finance to Alexcredit will be pegged to a respective loan issued by Alexcredit 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.
Alexcredit continues to increase Ukrainian market share
Alexcredit’s presence on the Ukrainian microcredit market is growing quickly. As of November 2018, the company’s net loan portfolio is more than EUR 2 million. The firm’s income in the first quarter of 2019 increased significantly by 715% year-on-year, and 38% quarter-on-quarter.
Adding Alexcredit’s Ukraine-issued loans to your investment portfolio is another fantastic opportunity to diversify your loan portfolio, which is one of the most effective ways to mitigate the risk of investing. If you use Auto Invest, be sure to update your settings accordingly!