DoZarplati changes its legal entity

DoZarplati, a lending company from Russia present on Mintos since 2018, has changed its legal entity. Although this change won’t affect the company’s offering nor return rates on Mintos, we reached out with several questions to find out more.

1. Why was there a need for a change of the legal entity behind the DoZarplati brand?

“DoZarplati follows the previously outlined path of business diversification, so it was decided to divide the loans issued to the private individuals into a separate legal entity within the DoZarplati group of companies. This is a big step that will enable the group to broaden its funding sources, as the new entity would have access to bank funding.

During the migration of both legal entities, the company will work under the DoZarplati brand, where LLC MFC “DZP-Center” (old entity) will systematically reduce the volume of loans issued to private individuals, and OOO MKK “Sojuz 5” (new entity) will increase.

In 6 to 9 months, the old entity will begin to more actively increase the issuance of loans for small and medium-sized businesses, and the new entity will continue to issue personal loans under the “DoZarplati” brand.”

2. What about the management and employees and processes of the new entity? Will they be the same?

“As before, all employees are employed within the group of companies and there will be no personnel changes – everyone will remain working in their places. It should be noted that, at least until the end of the year, due to COVID-19, the main part of the employees work remotely.”

3. What will happen with the old entity: how will it continue to work?

“After the end of migration and once we see the second wave of the COVID-19 passes, the old entity will actively develop loans for small businesses.”

4. When was the new entity established?

“The new entity was established in 2015, and in the pre-COVID period was engaged in part of our offline business. During the spring lockdown, the company, which was already moving away from offline in favor of online loans, only accelerated its path.”

5. What is the planned net annual interest rate you expect to offer to investors on Mintos?

“Like any other company that places loans on the Mintos platform, we want to achieve a balance of the interest rate, so that both our company and investors on Mintos are satisfied. In this regard, it is quite difficult to predict the rates in advance (or even impossible at all). It can be guaranteed that our offer will be such that it would meet the needs of investors in the risk / reward ratio and also rely on the demand / supply ratio.”

6. How do you assess the creditworthiness of your clients?

“We assess the current solvency of our clients as good, keeping in mind the current economic situation in the world in general and in our country in particular. In addition, the company is constantly developing various products that allow clients to reduce debt burden indicators, the size of the monthly payment, and so on, which, together with the company’s very moderate appetite for risk and constant monitoring of the situation, allows even at such moments to slightly improve the company’s overall performance.”

7. What’s the total loan amount the old and new entity disbursed?

“To date, the net loan portfolio on both entities has exceeded €20 million”

The change of the legal entity won’t affect the company’s offering nor return rates on Mintos. Also, the Mintos Risk Score (7) for loans offered by DoZarplati will not change and investors will get additional security by means of the guarantee from other DoZarplati group’s companies.

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