IsePankur, an Estonian online lending platform allowing individuals and small and medium-sized enterprises to borrow and lend to each other, recently began allowing anyone within the European Union to loan as little as EUR 5 (USD 6.40) to individuals and organizations in Estonia.Lenders also may diversify their portfolios among various unsecured loans, all of which are originated in Estonia. By investing in the Estonian market investors may benefit from undercutting the reported 37-percent annual percentage rate often charged on loans in the country. According to Partel Tomberg, CEO of isePankur, “This is the first time that private investors can invest directly in Estonia without committing large amount of money.”
IsePankur was established in 2008. From 2010 to 2012, the average annual return on loans made through the firm reported at 18.07 percent after bad debts. As of 2012, isePankur reports a total equivalent to EUR 1.46 million (USD 1.9 million) loaned to 3,672 active borrowers.
By Sarah Benali, Research Associate
About isePankur IsePankur, established in 2008, is a lending platform that allows individuals and small and medium-sized enterprises to borrow and lend to each other in amounts as low as EUR 5 (USD 6.47). The company has been acknowledged as the “Best Estonian E-service of 2011” by the Estonian Ministry of Economic Affairs and Communications and the State Informatics Centre and was a quarter-finalist at the World Summit Awards of 2011. From the tightening of its risk management policies in 2010 through 2012, lenders at isePankur have had annualized returns of 19 percent. Recently, the company has expanded offerings to include software sales and technology licensing to other online lending companies as well as “social banking” organizations. IsePankur reports having generated a 56-percent profit margin in 2011. As of 2012, isePankur reports total issued loans equivalent to EUR 1.46 million (USD 1.9 million) serving 3,672 active borrowers.
Sources and Additonal Resources
Information provided by isePankur to MicroCapital.org
RFPconnect.com story: “Estonian peer-to-peer lending service isePankur.com launches pan-European investment product,” October 30, 2012, http://rfpconnect.com/news/2012/10/30/estonian-peer-to-peer-lending-service-isepankur-com-launches-pan-european-investment-product
MicroCapital.org story: “MICROCAPITAL BRIEF: Estonian Lending Website isePankur.ee Launches Social Banking Software,” March 12, 2012, https://www.microcapital.org/microcapital-brief-estonian-lending-website-isepankur-ee-launches-social-banking-software/
MicroCapital Universe profile: isePankur https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=isePankur
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