Estateguru, a leading peer-to-peer lending platform, has recently implemented several changes to their credit policy in order to strengthen their portfolio and enhance the investor experience.
The new credit policy, effective from August 1st, focuses on prudent lending practices and sustainable growth. One of the key changes is the introduction of stricter concentration limits to ensure a well-balanced distribution of risk. The maximum credit exposure for new borrower groups and loans is now capped at €2.0 million in Latvia and €3.0 million in other countries. Existing borrower groups are subject to a maximum exposure limit of €4.0 million. If exposure surpasses this threshold, an exit strategy will be executed, unless approved by the risk committee.
In addition, Estateguru has set a ceiling on the probability of default for projects, guided by Moody’s assessment system. Projects with a probability of default higher than 5% will be rejected.
To align with their strategic evolution, Estateguru has decided to discontinue large-scale development projects. This will allow them to adopt a more focused approach to project selection and optimal risk management.
Furthermore, the platform has ceased the provision of related party loans to improve transparency and accountability. This decision reflects their commitment to ethical lending practices and aims to instill greater confidence in investors.
Estateguru has also implemented timely valuation guidelines, mandating that the collateral for new credit evaluations should not exceed 6 months. This ensures that their assessments are accurate and up-to-date, safeguarding the integrity of their loan portfolio.
Lastly, the platform has discontinued the acceptance of privately owned collateral to enhance the security of their loans.
Overall, these changes highlight Estateguru’s proactive approach to protecting investments and shaping a sustainable future. Investors are encouraged to explore these refinements and understand their impact on the platform’s journey towards financial success.
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