Lime Zaim now offers installment loans on Mintos

26.08.2020

mintosblog

We’re happy to announce that Lime Zime is the first lending company to expand its product offering on Mintos since the Covid-19 pandemic began in mid-March 2020. 

Lime Zaim is now offering installment loans to investors on Mintos with an expected net annual interest rate of 14.5% (loans in EUR). The loan terms for Lime Zaim’s installment loans range from 42 to 168 days with prolongation options, depending on the client’s needs and creditworthiness. 

Installment loans contribute to approximately 60% of Lime Zaim’s revenue. The company’s plan is to increase the focus on installment loans and in turn, offer investors on Mintos new opportunities with higher than average potential returns.

The current net portfolio of Lime Zaim is € 15 million (principal minus provisions). In its lifetime, the company has in total issued around 850 000 loans to roughly 336 000 clients.

If you are already investing in Lime Zaim short-term loans and wish to invest in installment loans as well, don’t forget to adjust your investment strategies.

See Lime Zaim’s installment loans on the Primary Market.

About Lime Zaim

Lime Zaim, part of the Lime Credit Group, was established in 2013 in Russia and began issuing loans in the first quarter of 2014, with installment loans being introduced in May 2017. Lime Zaim’s lending products assist under-banked consumers to expand their purchasing power and to manage their short-term cash flow needs. 

The client base of Lime Zaim represent various age and gender borrowers, yet the majority of customers with the most loyal repayment discipline are 25 to 35 years young women who prefer bigger installment loans as they have better conditions and lower financial burden than taking several smaller payday loans. You can learn more in Lime Zaim’s recently updated presentation.

Lime Zaim uses a proprietary machine-learning- scoring model to assess borrowers, incorporating more than 500 parameters from various sources (credit histories, behavioural parameters, data from telecom operators, etc.). When it comes to installment loans, the company does an additional verification of clients with a request for additional documents.

The current amount of Lime Zaim outstanding investments on Mintos is € 1.38 million. There are 17 148 investors with active investments in Lime Zaim loans, with the average investment per investor being € 80.

Comment from the CEO of Lime Zaim

Dear Mintos investors,

We believe that Lime Russia has successfully navigated the Covid-19 consequences so far.

In anticipation of a worsening economic backdrop in Q2 2020, we temporarily stopped offering installment loans. However, since 1 July 2020, we have returned the installment products as the pragmatically forecasted negative scenario in the economy didn’t materialize. We still have more stringent scoring requirements for all of our clients, especially if they apply for a two-month or longer loan. 

The credit holidays imposed by the Russian government haven’t had a significant impact on our business as the total number of applications for credit holidays due to the COVID-19 among our borrowers was less than 1 000 cases. During the first COVID-19 outburst months, we managed to significantly lower our operational costs and instituted regular sale of portions of our non-performing portfolio to several collection agencies to keep even higher liquidity. 

We updated the budgets and reviewed the development plans. As for 2020, we don’t plan to expand our business in any other country apart from those where we currently operate – Russia, South Africa, and Mexico. 

And, perhaps most importantly, during this time the company fulfilled all financial obligations to Mintos investors and third-party lenders.

Thank you very much and keep safe.

Alexey Nefedov

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