Attractive interest rates for secured consumer loans (low loan-to-value ratio)

Slovakia, with its capital Bratislava, is a fascinating country that attracts visitors from all over the world with its castles and impressive natural landscapes. With a population of around 5.8 million, the country offers a unique blend of culture and nature experiences. 

Slovakia has a solid economic performance, which is also reflected in the gross domestic product (GDP) per capita of 35,463 US dollars. The country has a respectable credit rating of A+ from S&P, indicating solid financial stability and reliability. In terms of sustainability and environmental performance, Slovakia has a BBB ESG rating.

Although the average income in Slovakia (Eurozone) is comparatively low at EUR 980 (EUR 2.2k) per month, the country benefits from a comparatively low per person debt of USD 3,755 (EUR 29k).

Overall, Slovakia is characterized by its imposing castles and picturesque natural landscapes. The country looks back on a rich history and offers its inhabitants and visitors alike a wealth of cultural and natural treasures. Although the economic figures are not quite as impressive as those of Sweden, Slovakia is still striving to develop its economy and offer its inhabitants a high quality of life. At the same time, the country strives to protect its natural treasures and make sustainable decisions to preserve the environment for future generations.

The P2P platform from Slovakia

  • Founded in 2012

  • Profitable as a company

  • Possibility to sell the acquired shares on the secondary market

  • Active in Slovakia and the Czech Republic

  • Loans partially secured by mortgages


Dealing with late payments

The handling of late payments varies depending on the platform. Some platforms only use in-house solutions and others use external service providers. Below is an example of Zltymelon's in-house receivables management with the following process structure:​

  • In-house receivables management for initial steps in the event of late payment
    • Demand letters in digital and physical form
    • Wage deduction contracts to employers
  • In the event of a negative outcome, transfer of the receivables to DCA, which starts the legal collection process after a new soft collection
  • Electronic debt collection according to Act. No 307/2016 leads to faster and simpler process results in Slovakia

Portfolio in der Slowakei


interest rates for newly issued loans (static across all risk classes)


average loan amount


years average remaining term


average failure rate


annualized return

Consumer loans: uncorrelated and profitable

Regulation in Slovakia

No special or regulatory license is required to operate a platform and provide peer-to-peer lending in Slovakia. Companies operating in this area must have a normal commercial license and secure their operations and legal structure to meet all requirements, especially those of the Consumer Protection Act, data protection and anti-money laundering.

Loan agreements concluded on the platform are direct contracts between investors and borrowers. iService, a.s. (provider of Žltý melón) acts on behalf of investors as a mandatory member when signing the loan agreement and related documents. The loans granted are personal loans regulated by the Civil Code (on the basis of Act No. 40/1964 Coll.). Žltý melon maps all standard KYC processes specified in the legislation. Borrowers must identify themselves with two IDs, proof of address and employer/income confirmation. For most of our products, we require borrowers to provide bank statements (through PSD2 direct bank account integration or upload). Borrower signatures on all loan agreements must be notarized or a bank wire transfer is required (depending on the product). Investors must provide a valid ID and can only make transfers to their Žltý melón investment accounts from their own bank account from a SEPA country. In addition, we regularly check our clients against the European Union's Consolidated Financial Sanctions List.

In addition to KYC, all loan applications are fully checked and risk assessed. The platform always checks bank accounts, income, expenses, liabilities, information provided at application, employment history (including a call to the employer), external credit and debt collection records, debts (including employers), foreclosures, bankruptcies and more. The system also includes fraud prevention mechanisms and calculates the maximum DBR (debt to burden ratio) for a maximum monthly repayment and loan amount. In the event of problems with repayment by the borrower, collection proceedings could be initiated as a last resort, which could lead to the enforcement of all the borrower's assets. Loans are sometimes also securitized from payroll deduction agreements. Further collateral may be provided in the form of mortgages with low LTVs.

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