Fellow Finance maintains returns despite the pandemic
Fellow Finance’s loanbook managed to return 8.6 per cent last year despite the pandemic.
The Finnish peer-to-peer lender has revealed in an annual review of its loanbook performance that repayment levels remained the same as they were before the coronavirus outbreak.
The platform attributed this to a tightening of its credit policy and active debt management.
Read more: Fellow Finance warns of lower profits
Fellow Finance said it ensured its loan portfolio was diversified, adding that for the vast majority of households during an economic crisis, “income levels remain unchanged and thus a diversified loan portfolio appears to be a steady investment even in a weak economy situation.”
The lender said returns have remained at a good level and borrowers have benefited from forbearance, while investors have been able to make use of insurance policies that pay out if a loan cannot be repaid.
“We see that this has proven that our stable and well-diversified fixed income investment alternative is working even in an economic downturn,” Fellow Finance said in a blog post on its website.
Fellow Finance last month said it will reimburse lost interest to investors after the government extended a rate cap on consumer loans.
The Finnish parliament approved a rate cap of 10 per cent on all loans amid the coronavirus outbreak in April 2020.
It was due to last from May until the end of December 2020.
The rules have now been extended to loans made between 1 January and the end of September 2021.
Read more: Fellow Finance breaks lending record in January