Total Funded: €174,068,306

Historical return: 10.5%*

Total Funded

€174,068,306

Historical Return

10.5%*

Bondora is a marketplace for direct peer-to-peer lending that allows users to invest in loans granted on the platform directly to borrowers. All loans are consumer loans. The loans come without buyback guarantee and can be sold/bought on the secondary market. A new product called ‘Go & Grow’ allows users to lend money to Bondora’s portfolio of loans without having to select specific loans.

Last updated: February 23. 2019

P2P Business Area:

Founded:

Founders:

Country of Origin:

IPO Status:

Countries of Operation:

Number of Investors:

Consumer Lending

2008

Martin Rask, Mihkel Tasa & Partel Tomberg

Estonia

Private

Estonia, Spain & Finland

46,871

 

Bondora - Overview

P2P Business Area:
Consumer Lending

Founded:
2008

Founders:
Martin Rask, Mihkel Tasa & Partel Tomberg

Country of Origin:
Estonia

IPO Status:
Private

Countries of operation:
Estonia, Spain & Finland

Number of investors:
46,871

Bondora - Pros & Cons

Pros

  • High interest rates
  • 'Go & Grow' portfolio allows fast diversification and quick withdrawal

Cons

  • High risk
  • Actual returns are lower than expected when investing in single loan notes.

Characteristics of Loans

Interest Rates

5,71 % - 19,92 %

Loan Durations

3 - 60 months

Currencies

EUR

No buy-back Guarantee

Minimum Investment

0

Direct Investment Structure

Loans on Bondora

Bondora displays an in-depth overview of the loans in six different columns:

  • Summary: Principal, interest rate, date of issue and expected last payment date.
  • Borrower: Age, country, current employment started, education and home ownership.
  • Income and expenses: Monthly income, mortgage loan (if any), loan liabilities without mortgage (if any), other liabilities and liabilities after refinancing.
  • Registered payment problems (if any).
  • Collection process (if any).
  • Loan schedule (amortization table with repayments): Date for expected payment, amount, principal, interest and late charge payments (if any).

If investing into single loans at Bondora is not preferred by most lenders, the platform has developed a product called ‘Go & Grow’. ‘Go & Grow’ is a one-click investing option that gives the lender the option to lend to Bondora’s portfolio of loans instead of directly to the borrowers. The ‘Go & Grow’ portfolio have a maximum return possible of 6.75 %. If the portfolio performs better than that, the platform will set aside cash for bad times to better secure a steady return to investors choosing the ‘Go & Grow’ option. Below is an image of the setup of the ‘Go & Grow’ product and how you could use it. As an investor in the ‘Go & Grow’ product you do not have to transfer a monthly amount or specify how many years you want to invest. It is possible to put as little or as much wanted into it whenever you please. The plan for the ‘Go & Grow’ illustrated below is simply a proposal on how you could structure it and what you can expect from it. It is possible to withdraw the invested amount whenever pleased by paying a fee of € 1.

Buy-back Guarantee on Bondora

Loans on Bondora do not come with a buyback guarantee and if investing into single loan notes there will be defaults. This is something many highlight about Bondora. For this reason, many investors have chosen to move into the ‘Go & Grow’ instead of having a portfolio of single loans and trying to control the diversification themselves.

What Happens if the Platform Goes Bankrupt or a Borrower Defaults?

There are two different types of investment structures in P2P investing:

  • The direct structure means you are buying a claim against the borrower directly. 
  • The indirect structure means you obtain exposure to a loan by investing in a loan issued by a platform company to the loan originator.

Bondora is a special peer-to-peer lending platform in the way that it offers two different products with different risk profiles. The primary market is using the direct investment structure, which means that investors are lending directly to the borrower and if he/she goes bankrupt you lose the invested money if there is no collateral to claim at the borrower. The ‘Go & Grow’ portfolio is using the indirect investment structure, which means that you are basically lending money to Bondora, and they then lend it to borrowers. The risk in this type of structure is different, because if Bondora goes bankrupt investors will lose the money invested in ‘Go & Grow’. This means that if investors invest in the primary or secondary market the risk is at the borrower; if investors invest in the ‘Go & Grow’ portfolio the risk is at the platform.

Platform Features

Manual Investing

Manual investing on the platform is simple and straightforward with the ability to filter a LARGE range of settings. The ones displayed below are just a few of them, but you can find anything from country, interest and Bondora rating to repaid interests/late charges to principal paid. The borrowers do not have different assets secured as it is simple consumer lending. The amount of loans is not huge, but it is possible to diversify between ratings and countries with a minimum investment of € 1 euro. All available loans are in Euro.

Automatic investing

The Portfolio Pro Manager offers the option to automatically invest on the Bondora marketplace with simple settings such as country, rating, loan duration, maximum investment per borrower and other filters with investments down to a minimum of € 1.

Secondary Market

The platform have a secondary market, but since the introduction of the ‘Go & Grow’ product it is not used that much anymore. The secondary market do not have any fee to the seller or buyer.

Nice to Know for Investors

Registration Process

Registering at Bondora is very simple and easy. Creating an account as an individual requires just name, email and phone number. After creating an account Bondora will send an email with instructions on how to register. The platform complies with KYC (Know Your Customer) and you need to provide an identification document to be able to withdraw from the platform. Note that you can create an account and invest, but you will have to complete the KYC before withdrawing.

Deposit & Withdrawal Process

Depositing funds to your investor account is done in three steps:

  1. Transfer money to the Bondora account from your personal account with bank transfer or one of the below-mentioned funding methods.
  2. Your funds will be available for investment within the day of confirmed arrival (usually 1-3 banking days).
  3. After the funds are received and added to the account, you will receive an e-mail confirmation.

Withdrawing funds is very simple if you are already KYC validated. You just click the “withdraw funds”, enter the desired amount and wait the 1 to 3 business days. There is no minimum withdrawal restrictions and no additional fees or commission for withdrawing the funds – except maybe from your own bank. Remember, depending on their fee structure, your own bank might charge fees for handling the transaction or exchanging currency.

Funding Method

Bank Transfer

Reporting

Bondora features an incredibly detailed statistic page and you have the option to customize the page to contain your preferred information. On everything from loan rating to loan purpose, you will be able to see a graph of the diversification in your portfolio. However, this only applies to the primary and secondary market and does not include what loans the Go & Grow portfolio is invested in.

Bondora Tax

Bondora do not address how tax is paid on the platform and even claim that the Go & Grow portfolio is only taxed when you withdraw from the platform. This is most likely not true for most people, since you normally pay tax on income in the country in which you reside – whether the income is realized or not.

Support

Bondora does not have a chat function and only replies on email. The support is okay, but it is neither fast nor is it easy to get a precise answer. An issue we have been dealing with at P2P Market Data is that their loan book is public, but the numbers in the loan book is sometimes not the same as advertised on social media – an issue we have addressed several times without any explanation or correction.

Bondora's Competitors

Who Can Invest?

Bondora do not address who can invest on the platform in their FAQ and it seems that everyone is welcome from all over the world if a valid ID is provided.

Disclosure

Please note that this overview may contain affiliate links. It means that a commission is earned if you decide to invest after using the link – of course without additional costs to you. The information on this site does not constitute investment advice and is solely to give you a simple and easy overview of the platform. Always conduct your own due diligence and consult your financial advisor before making any investment decisions.

* Historical return is not a guarantee of future return. The number is directly from Bondora’s website bondora.com

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