Tag Archives: Mintos OU

First loan originator from Armenia – Varks.am – joins Mintos p2p lending marketplace

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The first loan originator from Armenia has just joined Mintos! Varks.am is one of the leading alternative lending companies in the country and now offers short-term consumer loans for investment on the Mintos marketplace. Loans from Varks.am are listed in euro (EUR) with expected returns of 13%.

Established in 2016, Varks.am is a universal credit organisation that offers its customers fast and easy access to funds through an effective application process. Clients can receive their loan from the company in cash after applying at one of the 30 branches the company has across Armenia.

Varks.am has more than 180 qualified and dedicated employees and a reliable client identification process which involves meeting all clients in person. Currently, Varks.am offers consumer loans, however, the company plans to expand the loan types issued to include business, pawnbroking and mortgage loans in the future.

Armenia-issued short-term consumer loans on Mintos from Varks.am range from EUR 17 to 420. The average repayment is 30 days and borrowers repay the loan in a single instalment. You can expect a yearly return of up to 13%.

All loans from Varks.am that are delinquent for 60 days will be secured with a buyback guarantee by its parent company. In addition, Varks.am will keep 10% of all loans placed on Mintos on its balance sheet – to ensure its interests are aligned with those of investors.

“We are truly excited to add Varks.am to the marketplace. Armenia is the 20th country on the marketplace and we are pleased to offer our investors the opportunity to invest in short-term consumer loans in a new geography,” says Martins Sulte, CEO and co-founder of Mintos.

Varks.am is a licensed financial institution that is governed by the Central Bank of Armenia. As of December 31, 2017 the company had a net loan portfolio of more than EUR 6.5 million. The company is steadily growing its customer base and its priority is to maintain a balanced growth through special offers whilst also focusing on its loyal customers.

The average customer of Varks.am is a 26 to 30-year-old male who is seeking a loan to cover unexpected expenses and make small purchases. Clients appreciate that Varks.am has many branches throughout Armenia, so a branch is never too far away. The company serves its clients very quickly and effectively, creating convenient lending conditions for its customers.

To obtain exposure to Varks.am loans, investors will be able to invest in loans issued by Mintos OU to Varks.am, where repayments depend on the final borrower’s payments. Each loan issued by Mintos OU to Varks.am will be pegged to a respective loan issued by Varks.am to the final borrower. Mintos OU is a Mintos group company.

New structure for investments in Lendo loans on Mintos peer-to-peer lending marketplace

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Starting from August 3, 2017, there will be a new structure for investing in Lendo loans on the Mintos marketplace. The new structure stems from new regulations imposed by the local supervisory authorities in Georgia, where Lendo operates.

How will the new process work?

To obtain exposure to Lendo loans, investors will be able to invest in loans issued by Mintos OU to Lendo, where repayments depend on the final borrower’s payments. Each loan issued by Mintos OU to Lendo will be pegged to a respective loan issued by Lendo to the final borrower.

Mintos OU is a Mintos group company. A detailed description of the new structure is available in the Mintos OU loan contract and assignment agreement.

How will the new structure affect investors?

Investors making investments according to the new structure will still gain exposure to Lendo-issued loans. Previously, investors had a direct claim against the final borrower; now, investors will have a claim against the loan originator – Lendo.

Because investments made will still be pegged to the loan performance of loans issued by Lendo, current Auto Invest functions for investing in Lendo loans will remain valid for loans placed on the Mintos marketplace under the new structure. If the change in investment structure affects your investment preferences, please be sure to adjust your Auto Invest settings accordingly.

About Lendo

Lendo joined the Mintos marketplace in July 2016, and has since become one of the top loan originators on the marketplace. The company offers investments in short-term unsecured loans issued in the largest cities in Georgia. So far, Lendo loans worth more than EUR 80 million have been funded through the marketplace.

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