By Andrei Skvarsky.
CarMoney, a Russian online retail provider of loans secured on motor vehicles, has reported rapid business growth for the little more than a year it has existed as a rebranded company.
The Moscow-based fintech lender, which looks for investors, promising a 20-per-cent return, made loans totalling more than 1bn roubles (over $15m) between February 2016 and April 2017. For the two months from February to April 2017, it boosted its loan portfolio by more than 25 per cent, according to a statement from the firm.
The company, which was known as Stolichny Zalogovy Dom (SZD) before being rebranded as CarMoney, owns capital of 150bn roubles ($2.6bn) and plans to attract 2.5bn roubles as investments by the end of 2017.
CarMoney provides loans of between 50,000 and one million roubles (between $875 and $17,500) for small businesses and individuals via more than 450 offices in 46 Russian cities. The company says it uses an automated system based on “technology of its own design” for processing loan applications, credit scoring and the release of loans. It takes one to three hours to get a loan arranged.
The firm “offers a reliable, simple and quick instrument for obtaining a large sum of money”, the statement quoted CarMoney founder Anton Zinovyev as saying.
CarMoney chief executive Konstantin Yevdakov said the company’s clientele has had a default rate of just 4.6 per cent, and that the firm offers a “much simpler” way of borrowing than “other accessible opportunities in this category”.