The current global pandemic and economic downturn are impacting borrowers worldwide. Lending companies are reacting and supporting borrowers by offering extensions where it’s reasonable and appropriate. Also, some countries (e.g. Lithuania, Romania, and Spain) have announced debt moratorium that allows borrowers to delay the repayment of debts.
Many lending companies on Mintos have been already offering loans with extensions to investors for a while. Starting from today, one by one we will reflect that lending companies enable extensions functionality for all their outstanding and new loans. That means that when the borrower will ask for the extension and the lending company will agree to it, this loan will be reflected as extended also on Mintos. This will much better reflect the cash flows received from borrowers.
Investors can see in the Loan Details whether the schedule for a given loan can be extended. The indication of possible extension does not mean that the borrower has already extended the loan, it means that the loan can be extended subject to agreement between the lending company and the borrower.
A lending company offers an extension to the borrower in the ordinary course of the business, or if they agreed to do so upon borrower request to help the borrower service the loan, or if the local regulation requires them to do so (e.g. in case of debt moratorium).
The lending company reviews each case separately. If the extension is granted, it is entered into the lending company’s systems. The lending company then informs Mintos by sending in an API request information on the extension. Investors will know the loan is extended once the Loan Details show the extended repayment schedule. Investors will receive accrued interest till the moment of extension and will continue to earn the same interest throughout the remaining loan term.
We are convinced that the additional extension functionality is in the best interest of our investors, as it will bring greater support for borrowers as well as lending companies looking for liquidity to work through the existing turbulence in the markets worldwide.
If you have any questions, feel free to reach out at [email protected].
