Creditstar has increased the investment opportunities it offers on Mintos! Now, you can invest in personal loans issued by its Estonia-based subsidiary Monefit and earn net annual returns of up to 12% . This is in addition to Creditstar’s loans that are already available for investment issued in Poland, Spain, Czech Republic and Finland.
Established in 2013, Monefit offers its borrowers flexible revolving lines of credit, where the borrower chooses how much they need to borrow at any point in time and can manage the details through a mobile app.
Estonia-issued loans from Monefit on the marketplace will range from EUR 50 to EUR 3000 with a maturity up to 60 months. You can expect a net annual return of up to 12%.
All loans placed on Mintos by Monefit have a buyback guarantee and will be repurchased if the loan is delinquent for 60 days or more. The company will also keep 5% of each loan it places on the marketplace on its balance sheet to maintain its skin in the game. Monefit will have a group guarantee, meaning the obligations of Monefit will be guaranteed by Creditstar Group.
Creditstar Group was established in 2006 and provides consumer financial services in Europe. Creditstar is headquartered in Estonia, where the company is one of the largest providers of online credit. The company has gained the trust of more than half a million registered users in eight countries across Europe.
Creditstar Group has a strong equity position, with more than EUR 18 million in equity and EUR 85 million in assets. The company has also delivered consistent profitability every year since its inception in 2006. The aggregate net loan portfolio of Creditstar Group was EUR 78 million as of September 2018.
Creditstar Group puts a strong emphasis on responsible lending policies and high-quality customer service. The typical Creditstar customer is an active, young male, 26-35 years old, living in a small town. The company has a strict credit policy with only approximately 30% of applications accepted. Debt collection companies are involved in the recovery of non-performing loans.
In Envestio portfolio you will find some projects wich are located in Baltic States. Is it safe to invest in these projects? First of all it depends on economic growth and economic growth forecasts in these countries.
What are forecasts of economic development of the Baltic States?
Estonia, Latvia and Lithuania as open economies gain profit from rapid cyclic acceleration and growth of world trade. Based on the IMF World Economy report, it is expected that annual growth both in 2018 and in 2019 will achieve record of seven years or 3.9%. Global recovery currently happens much more steadily and has solidified all over the world, besides global entrepreneurship confidence level is record high, which respectively affects further rise of the internal demand an d improves the labour market.
Only geopolitical tension and risk of political uncertainty are two factors that may cause potentially negative effect on total positive external demand of the Baltic States. Despite strong prospective of growth, Europe is directly affected by Brexit. However, direct influence of the United Kingdom’s trade links on the Baltic States still remains limited. Speaking about risks, conflicts about trade can also decrease record high level of economic optimism and global trade.
Unusually powerful rise is forecasted for the Baltic States, providing that the growth rate will only normalize starting from 2019.
On the favourable external background, in the last year Estonia and Latvia achieved growth rate of over 4% (4.9 % and 4.5 % compared to the previous year, respectively), and Lithuania showed stable annual growth of GDP – 3.8 %. Similarly to other countries of the Eurozone, cyclic recovery has gained speed, and it is forecasted that the biggest contribution to the growth of countries in the next year will be provided by the domestic demand.
Eurozone annual growth in 2018 will be 2.3%, it supports the growth rate in the Baltic States that will be above the maintained long-term rate, however it will gradually slow down due to basic effects and exhausting of yet unused reserves of resources. It is expected that export growth from the initial powerful acceleration will come to the normal level and will include both products and services, providing that increased growth will take place exactly in sector of services. Growth restrictions will first be reflected in the labour market, while lack of qualified labour grows.
Economic bases of the Baltic States are still stable, finances of the countries are almost balanced and public debt levels are the lowest in the whole Eurozone. Estonian, Latvian and Lithuanian main future challenges mostly are of structural nature and are related to challenges in acceleration of productivity and growth of added value.
Baltic States will still be ones of the most rapidly growing Eurozone countries, with shrinking significant income difference compared to the European trade partners.
In this long-term adventure we must avoid temptations in respect of excessive domestic stimuli. Quite the other way, long-term growth is based upon complex choices, for instance, in the smart specialization, development of innovations and technologies, in order to promote export and profit. Increase of research and development (R&D) expenses in the private sector, strengthening of the ecosystem of small and medium companies and new companies and especially investments in human capital are examples of modern solutions that must be further used, in order to gain maximum benefit from the next decade’s global technological and digital bull race. Revenue of sectors of globalized technologies will still exceed forecasts.
Today we can say with confidence that investments in real estates of the Baltic region are the most profitable and efficient way to not only keep, but also multiply cash assets.
Situation in Europe also slowly improves. Stress caused by the refugee crisis decreases, besides economic factors of the European countries also slowly improve. Since main investors in the Baltic States come from the EU countries, their opinion of further growth prospective has increased and optimism slowly grows. In truth the United Kingdom’s departure from the EU is still ahead. However, it will probably cause investors to look for new places to invest money and create new companies in the EU. And one of the most prospective opportunities is the Baltic region.
Latvia still has many unused opportunities to invest in housing – Luminor bank has expressed its opinion at the conference “How will real estate market develop in Latvia?”.
Approximately 85% of homes in Latvia are not encumbered with credits, this means that opportunities to borrow for investments in housing are wide. Compare – for instance, in the Netherlands all homes have mortgage liabilities. In the Eurozone average proportion of mortgage loans to the gross domestic product is 40%, and in the Baltic States – just 16%. In turn, ability of the Baltic residents to purchase homes is assessed as good.
Housing market in Estonia and Lithuania is currently close to maturity, while in Latvia activity in the housing market is still quite slack. In turn, crediting cycle is relatively new and will only gain speed.
The whole Baltic Sea region currently sees rapid growth, and from the point of view economics this is a good time to invest in the Baltic region’s projects and gain from it guaranteed profit.
Find profitable investment projects in Baltics with Envestio
Placet Group is a leading non-bank credit provider in Estonia that issues secured and unsecured loans to individuals and legal entities with a focus on personal and short-term loans. The group was established in 2005 and launched its first brand on the Estonian market in 2007. Since then the group has launched additional brands in Estonia and started issuing loans in Lithuania in 2011 and Poland in 2015. The group prioritises an individual approach to customers, a high-quality service and operational efficiency and transparency.
Now you have the opportunity to invest on Mintos peer-to-peer lending marketplace in personal loans issued in Estonia. In Estonia, the company issues its loans under its brands smsmoney.ee, smsraha.ee, laen.ee . Take advantage of this great opportunity to earn net annual returns of up to 10% now.
Placet Group is a well-established non-bank finance lender. It started its operations more than a decade ago in 2005 and launched its first brand in Estonia in 2007. Since then, the group has launched more brands in Estonia and started its operations in Lithuania and Poland. It aims to give its customers an individual approach, high-quality and fast service and transparency. These values have attracted over 125 000 unique customers in Estonia.
“We have been watching Mintos for a long time and the marketplace has demonstrated rapid growth and has achieved magnificent success in the investment market. We know success does not come without effort and the team behind Mintos is made up of hard-working professionals. In Mintos, we see a strong, reliable and professional partner in investments and with the help of the marketplace, we plan to increase our market share and also consider the possibility of entering new credit markets,” says Gennadi Krotov, CEO of Placet Group OÜ.
The average Estonia-issued personal loan from Placet Group on Mintos is around EUR 500, the total range of loans from the company on the marketplace is EUR 100 to EUR 7 500. The repayment period ranges from 30 days up to 5 years, although 30 days to one year is the most common repayment period. You can expect a net annual return of up to 10%.
All loans from Placet Group come with the buyback guarantee. This means, if a loan is delinquent for more than 60 days the loan originator will repurchase the loan. The company will also keep 5% skin in the game, to ensure its interests align with those of investors. Placet Group has a history of low delinquency rates. The percentage of its loan portfolio that is delinquent is around 5%.
Placet Group is well capitalised with an equity-to-assets ratio of 73% and since 2007, has disbursed around 550 000 loans in Estonia worth EUR 180 million. At the end of 2017, its net loan portfolio in Estonia amounted to EUR 15 million while achieving a turnover of EUR 6.2 million and a profit of EUR 2 million. The company expects stable growth and profits for future years in its home market.
