Robo.cash loans in Sri Lanka are doing well despite the country’s economic and political crisis.
The Croatia-based peer-to-peer lending platform launched Sri Lankan commercial lending in March through a partnership with its Sri Lankan operations. Lenders were able to invest in the loans over a three-year period with a target return of 12.5 percent per year, paid monthly.
Robocash Group, the parent company of the Robo.cash platform, owns a company called Rapidlend, which started operations in Sri Lanka last year. Rapidlend offers workers and select professionals instant access to payday loans.
On the Robocash platform, Rapidlend offers commercial loans in partnership with RC Riga, a special purpose vehicle that provides financing to Robocash group companies.
Rapidlend said it issued loans totaling about $700,000 (£567,583) in the first quarter and reported a 64 percent share of returning customers and a 15 percent share of delinquent loans, which Robo.cash called ” an excellent indicator for such a young portfolio.
The P2P platform said that new lending is currently on hold until the situation in the country stabilizes.
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“Sri Lanka faces unprecedented challenges in 2022: currency devaluation, daily protests, fuel unavailability,” said Fedor Neznamov, managing director of Rapidlend, in a blog on Robo.cash’s website.
“For our part, we want to cover a larger volume of the short-term market to help those with urgent expenses, which are growing rapidly given the current difficulties. In this regard, Rapidlend intends to increase issued capital, both in new and repeated loans.”
Protests are raging in Sri Lanka against the government over its alleged inability to resolve the worst economic crisis in decades, and the country is on the brink of bankruptcy after suspending payments on its external debt.
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