Latvian p2p lending marketplace Mintos today announced a buyback guarantee for all car loans issed by Mogo that are currently on the marketplace or will be listed on the platform until July 31st, 2015. The buyback guaranteeÂ applies for the lifetime of these secured car loan. Under the agreement Mintos concluded with Mogo, Mogo will buy back any of those loans that are 60Â or more daysÂ delinquent.
All secured car loans are originated, pre-funded,Â and serviced by mogo. It means that similar to real estate backed loans, Mintos puts on the platform already funded loans (andÂ most have had a number ofÂ successful payments) and investors can start earning interest from the momentÂ they have invested in a loan. Mogo keeps 5% of each loan on its books.
This construct provides additional security to investors – a bit like the provision funds some UK marketplaces maintain; only that in this case it currently is a limit-time guarantee.