The car loans in Lithuania are originated in cooperation with Mogo – a partner Mintos is already using in Estonia, where they together funded 250 car loans for a total of 300K EUR.
When investing in secured car loans investors enter in a direct contract with a borrower – similar to real estate backed loans the contract with respective borrower is transferred from Mogo to investor based on assignment. According to assignment agreement, part of the interest that borrowers pay is not assigned to investors and remains with Mogo to compensate it for loan origination and servicing.
I checked the loan listings – there are currently 9 Lithuanian loans secrued by cars listed with nominal interest rates in the range from 8 to 15% and loan terms of 6 to 71 month.
Earlier this month Mintos waived service fees for investors – only a fee for those selling on the secondary market remains.
