We acknowledge that we recently posted a lot of information on our blog. To make it easier for you to find the most important answers, we created this news summary.
A look at current affairs in March
Throughout history, pandemics like COVID-19 have inevitably made shifts in the global markets. While uncertainty is present, we should remain objective and calm in order to make solid decisions. After all, history has repeatedly proven that markets recover.
Action Mintos is taking
On March 20 2020, Mintos hosted a public live stream with CEO and co-founder Martins Sulte to answer questions from investors and talk about the steps Mintos is taking to ensure a sustainable environment for investors and lending companies.
– Receiving daily updates from lending companies
– Cutting back on operational costs and ensuring continuity
– Actively monitoring pending payments flow to minimize delays in loan repayment transfers to investors
– Reviewing Mintos Ratings to ensure most up-to-date information about lending companies
Action our lending companies are taking
As the effects of COVID-19 continue affecting people, companies, and markets, many lending companies have taken action to meet the situation head-on.
– Cutting back on operational costs and ensuring continuity
– Tightening credit and risk policies
– Increasing focus on collections from borrowers and proactively working with borrowers facing difficulties
Pending payments explained
On Mintos, investments and repayments need to be transferred between the involved parties. Due to limitations in the international financial systems, instant settlement is not always possible. Our article explains why payments can be pending, and what it means for investors.
Investors earn interest on pending payments
To compensate investors for delays in settling payments, they will earn interest for each day after the settlement period (7 days) at 1.2x the interest rate of the loan in question.
Additional schedule extensions functionality introduced
Lending companies are reacting to the global pandemic and economic downturn, and supporting borrowers by offering extensions where it’s reasonable or mandatory. We will reflect that on Mintos by enabling extension functionality for all outstanding and new loans.
Update on lending company problem cases and recovery
From now on, we will share with you a monthly summary with all the main statistics listed in one file. Below, in this article, you will also find our comments on the current status and about the funds recovered from each lending company.
Mintos Ratings update
We are publishing changes in the Mintos Ratings for a number of lending companies on Mintos, as per decisions made prior to developments caused by the COVID-19 pandemic.
Introducing a fee for selling loans on the Secondary Market
From 13 April 2020, we will introduce a small 0.85% fee for selling loans on the Secondary Market. We believe this is a fair and transparent fee that will help us cover the costs, and that sets us on par with or below other leading platforms in Europe and the UK.
