With significant growth in lending activity in Mexico in recent years, a total of €40.7 million was invested in Notes and claims on Mintos in 2022 and Q1 of 2023. As more individuals and businesses seek alternative funding sources, the alternative lending market in Mexico is poised to become an integral part of the country’s economic development.

Although credit cards remain popular, short-term loans are the most popular alternative lending product in Mexico, with government jobs opening doors to payroll loans.

In Mexico, it’s common for individuals to aspire to work for a federal agency or government, as these jobs offer stability and a reliable source of income. Such jobs provide the opportunity to qualify for payroll loans, which are commonly used to cover daily living expenses and family care.

Public sector jobs in Mexico typically offer retirement pensions backed by the federal or state government, and lenders often have contracts with employers such as hospitals and schools.

This setup benefits lenders and retail investors as repayments are predictable, with loan repayments being deducted directly from the borrower’s salary or pension. Consequently, the lender always receives payment first, as long as the borrower continues to receive salary or pension.

In addition to the investment opportunities in payroll loans for governmental institutions and direct debit personal loans, Mintos also offers other types of loans such as business loans, group loans, health-care loans and car loans.