Mintos loan originators become “less risky”

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Mintos loans have become less risky after the latest assessment by loan originators of the European alternative investment market.

The Latvia-based company introduced risk scores for each of its originators who fund loans through its platform last year.

Scores range from 10 for low to one for high risk and are reviewed quarterly.

They are calculated based on the quality and performance of an originator’s loan portfolio, how it collects bad debts, how it handles buybacks and its cooperation with Mintos.

The last review improved eight of the 93 loan originators, including Credisimo in Bulgaria and E Cash in Albania, giving them a higher score and therefore a lower level of risk.

Only one initiator, Russian Lime Zaim, was demoted to six.

Scores have been removed for E Cash in Ukraine as it draws to a close.

Cream Finance also lost its score as it is currently not actively lending in the Czech Republic and is ending operations in Denmark.

“The world is living better in the pandemic, vaccination is advancing globally and restrictions on movement and activity are increasingly relaxed,” Mintos said.

“Default rates on loans have now returned to pre-Covid levels, and the NPL ratio continues to decline, signaling lower risk for investors.

“As a result, positive developments are influencing the profitability of some of the loan companies assessed, resulting in a positive impact on the risk sub-scores, but mainly causing changes in the performance of the loan portfolio and the strength sub-scores. redemption. “

Read more: Mintos reaches € 5bn in financed loans


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