Romanian financial institution Viva Credit has expanded outside Romania by opening its first branch in Prague, the Czech Republic. The company invested EUR 1 million in the new office and aims to reach 1,000 clients by the end of the year.

“We chose the Czech Republic following studies which revealed this area’s potential. Unlike the Romanian market, the Czech market is more mature, our services being well known by the customers. Also, all the major international players in the field of short-term loans are present there, generating a high competitiveness,” said Ionut Stan, general manager Viva Credit.

Viva Credit’s lending activity in the Czech Republic began in November this year. So far, the financial institution already granted 100 loans, according to a press release.

Viva Credit has been active on the Romanian market since 2011. It offers fast loans online, with a repayment period of up to 35 days. Its product is called Credit pana la salariu (Loan until the salary) and charges a fixed daily interest rate of 1.2% of the total value, which makes the total cost of a loan 36% per month or 438% per year.

Since its launch, Viva Credit has granted over 300,000 loans worth over RON 150 million (EUR 34 million). The company had revenues of RON 12 million (ERU 2.7 million) in 2014.

Its main competitors in Romania are British group Provident, Finnish group Ferratum, and international group Mozipo, which entered the market earlier this year.

Irina Popescu, irina.popescu@romania-insider.com