Loan portfolio overview (June 2021)

Despite the hot summer days and the start of the holiday season, we still saw plenty of activity on our platform, with 80 loans financed in June (total funded amount was €15,3M).

Estonian and German projects collectively comprised  more than 50% of the volume.

Along with these solid sales volumes, loan repayments have also remained stable. During June, a total of €10,2M worth of loans were repaid to our investors. The average return on the repaid portfolio was 10,8%.

The increase in the default rate continued in June as a new market (Spain) was added to our ‘countries with at least one defaulted loan’ list. A Finnish defaulted loan, which we mentioned in last month’s report (bankruptcy estate case), will be recovered in the coming weeks as there were delays from the buyer’s side. In Latvia, two loans (same borrower and collateral) were successfully recovered in June (€0,2M).

Ongoing legal disputes take most of our debt collectors’ and external partners’ time. Our internal debt collection system, from late payment gathering to enforcement, has been developed to be robust and efficient, but external bureaucracy makes the process of recovery slow. However, this doesn’t change our goal to reduce the default rate to below 5,0%.

We will keep you informed about the credit portfolio quality on a monthly basis.

If you want to know more about Estateguru’s business, please also read our latest annual report.