How does Creditstar credit lines work and what does it got to do with pending payments?

Giuseppe

• 11.11. 2022 12:14

Reading Q3 results from Creditstar they mention that the rapid increase of pending payments on Mintos is because of a different technical setup on the loans due to them being a credit line. On primary market they show up as a personal loan, so what in the end is this product?

• Mintos team, can you elaborate on a detailed level how these credit line loans exactly work, how are these loans set up, and what this schedule means in the loan?
• What is the exact reason from a technical standpoint that can make pending payments for this company quicker than others?
• When will the platform restart function properly according to Creditstars comment so that they can repay the money (highlighted red)?

 

0

• 

  Lucja (Mintos)

  Community moderator

  • 15.11. 2022 13:10

  Hi, Giuseppe thank you for your comment. We will answer your questions soon. Thank you in advance for your patience.

  0
• 

  Lucja (Mintos)

  Community moderator

  • 15.11. 2022 18:45

  Giuseppe In response to your questions:
  
  1. Mintos team, can you elaborate on a detailed level how these credit line loans exactly work, how are these loans set up, and what this schedule means in the loan?
  
  Let's explain it with an example: If an end-borrower withdraws 500 EUR from a credit line, then this amount could be placed on Mintos platform available for investment. If the same end-borrower withdraws more, for example, 100 EUR, then this additional amount can be placed on Mintos for additional investment. Each withdrawn part needs to have a clear repayment schedule according to the end-borrower's agreement.

  2. What is the exact reason from a technical standpoint that can make pending payments for this company quicker than others?
  
  The part of the statement that “the pending payments are quicker to increase if the platform funding is low” is correct if the lending company becomes late with paying for its negative settlements¹, which, in turn, leads to a negative spiral and an increase in pending payments. It is a legal obligation rather than a “technical standpoint” of the lending company to pay negative settlements in time.

  3. When will the platform restart function properly according to Creditstars comment so that they can repay the money (highlighted red)?
  
  There is no technical misfunctioning of the Mintos platform which has had an impact on the situation.

   ¹caused by the sum of repayments of end-borrowers, repurchase and buyback obligations of the lending company being higher than new investments

  
  
  
  

  0

Přihlaste se, abyste mohli napsat komentář.