Mintos funded €48.6m (£41.4m)-worth of loans last month, down from €60.3m in May.
The European lending marketplace, which recently transitioned its investment product into regulated notes, noted the “global bearish markets and low investment sentiment” in a monthly update.
Despite the month-on-month decline in lending volumes, Mintos investors still earned around €2.4m in interest at an average rate of 11.6 per cent.
Mintos said the top three markets for investments in loans were Latvia, Poland and Spain.
“During June, more lending companies were launched in the new regulated investment firm set-up offering notes,” said Peteris Mikelsons, head of partnerships at Mintos.
“And in a couple of weeks, it’s expected that all of the remaining lending companies will also transition to offering notes exclusively. Given the global bearish markets and low investor sentiment, the outstanding investments on Mintos decreased to €353m during June. However, as loan supply continues to outpace demand, the average interest rate (in euros) has now reached 14 per cent.”
Mintos completed its transition to regulated notes earlier this month, meaning that its customers can no longer put funds into the old loan investment product or trade those investments on the secondary market.
The European lending marketplace launched its regulated notes on 25 May, which give investors better protection and transparency.
It had been working on transitioning its loan investment product into loan-backed securities since it secured its investment firm and electronic money institution licence in August 2021.