EstateGuru announced that it lent more than €10m (£8.6m) in February and said it is working to recover the loans that have caused its default rate to increase to 7.7 per cent.
The European peer-to-peer lending platform, which has funded €320.2m since its 2014 inception, said that its February lending volumes were similar to each month since August 2020.
Loans originated in Finland and Estonia each contributed a third of the total volume in February.
EstateGuru said repayments have remained stable and its borrowers are resilient to the coronavirus crisis. Last month, its borrowers repaid 59 loans, collectively valued at €8.1m, with an average return of 10.5 per cent.
However, EstateGuru said its default rate increased by 1.7 per cent to reach 7.7 per cent, due to a number of problematic Finnish loans.
It said it is working closely with its Finnish legal and debt collection partners to recover these loans.
“As we are over-secured, we do not forecast any capital loss, but see that, due to local legislation, the recovery process will take time,” EstateGuru said in a blog on its website.
At the end of January, EstateGuru passed the €300m funding milestone.
The platform saw its lending volumes rise by 50 per cent year-on-year to reach €120.2m in 2020, boosted by a stellar performance in the fourth quarter, in which the lender’s loan volumes increased by 102.71 per cent from the same period in 2019.