Robo.cash loans in Sri Lanka are performing well despite the country’s economic and political crisis.
The Croatia-based peer-to-peer lending platform launched commercial loans originating in Sri Lanka, through a partnership with its Sri Lankan operations in March. Lenders were able to invest in the loans for a period of three years with a target return of 12.5% per annum, paid monthly.
Robocash Group, the parent company of the Robo.cash platform, owns a company called Rapidlend which started operating in Sri Lanka last year. Rapidlend offers instant access to payday loans for employed individuals and selected professionals.
On the Robocash platform, Rapidlend offers commercial loans in partnership with RC Riga, a special purpose entity that provides financing to Robocash Group companies.
Rapidlend said in the first quarter it issued loans totaling around $700,000 (£567,583) and reported a 64% share of repeat customers and 15% of delinquent loans, which Robo.cash called a “great indicator for such a young portfolio”.
The P2P platform said that for the time being the placement of new loans was suspended until the situation in the country stabilizes.
Read more: Robocash Group expands to Sri Lanka
Read more: Robo.cash funded 15 million euros in loans in April
“Sri Lanka faces unprecedented challenges in 2022: currency devaluation, daily protests, unavailability of fuel,” said Fedor Neznamov, managing director of Rapidlend, in a blog post on the Robo.cash website.
“For our part, we aim to cover a larger volume of the market in the short term in order to help people with urgent expenses, which are increasing rapidly in the face of the current difficulties. In this regard, Rapidlend intends to increase the principal issued, whether new loans or repeat loans. »
In Sri Lanka, protests are ongoing against the government for its alleged failure to resolve the worst economic crisis in decades, and the country is on the verge of bankruptcy after suspending payment of its external debt.