Afranga review

Table of contents

Afranga's overview

Afranga was founded by Bulgarian loan originator StikCredit. This peer-to-peer lending platform provides medium and long-term short-term consumer loans with 16% annual interest rate – a figure much higher than most competitors -. A buyback guarantee A buyback guarantee is a guarantee provided by the platform or a loan originator. If repayment of a loan is delayed by more than a given delay (usually 30 or 60 days), the platform or loan originator will buy back the loan. The guarantee may cover only part of the capital, or in a much more interesting case, both the capital and accrued interests. As the conditions vary from one platform to another, it’s very important to check this point. is provided; it triggers after 60 days.

My opinion on Afranga

Afranga basically ticks all the right boxes.

  • In terms of reliability, it was founded by a reliable loan originator.
  • This safety doesn’t cause reduced returns, far from it : indeed, the interest rates are among the highest for consumer loans.
  • Finally, the platform’s ergonomics is great.

The platform’s only drawback is the lack of a secondary market, which is under development.

Detailed ratings

Actual performance

After roughly half a year on Afranga, this portfolio currently has a 14% XIRR.

Loans liquidity

The loans supply is ample enough to invest roughly any amount.

Reporting

The portfolio’s statistics are both complete and visually pleasant.

Transparency & reliability

StikCredit is a reliable loan originator, and the relationship between StikCredit and Afranga is crystal-clear.

Website ergonomics

The ergonomics of Afranga‘s website is on a par with Lendermarket‘s, which says a lot.

Afranga's pros & cons

Pros

  • Reliable loan originator
  • Very high interest rates
  • Extremely user-friendly interface

Cons

  • No secondary market yet

Loans characteristics

Loans durations

Medium-term : one month to one year

Long-term : more than one year

Loans kinds

Individual

Minimal investment

€10

Buyback guarantee

Buyback guarantee available

Currencies

EUR – Euro

Overview of Afranga's loans

Afranga offers only loans in Euro. They all yield interests monthly.

The interest rates are very high. Indeed, as of August 2021, they stand around 16%. Only Lendermarket offers the same level interest rates (up to 15%), while Robocash lags behind (12% or less). It remains to be seen whether interest rates will stay at this level.

Very short-term loans aren’t available. Indeed, loans terms currently range from six months to two years. Interestingly, StikCredit’s website mentions payday loans as one of their two main kinds of products, but it looks like they decided not to list them on Afranga.

It’s also worth noting that geographical diversification is non-existent, as StikCredit only operates on the Bulgarian market.

The minimal investment is €10, a very standard amount for P2P loans.

Loans volume

Afranga is a recent platform, so its investors base is still small. On the other hand, StikCredit’s portfolio is very large – more than six million euros -. As a result, the loans supply is more than enough to meet the demand.

If this situation lasts, it will be a strong selling point for the platform, as many competitors struggled at some point to provide enough loans with a decent interest rate.

Buyback guarantee

In a rather standard way, the buyback guarantee provided by StikCredit covers both principal and accrued interests. It triggers after 60 days, which seems to have become the de-facto trigger delay.

Platform’s transparency and reliability

In terms of transparency and reliability, Afranga sets the bar very high. Indeed, StikCredit is regarded as a reliable originator, and the ties between Afranga and StikCredit are straightforward.

Afranga’s background and team

Afranga was founded in early 2021 by Bulgarian originator StikCredit. This is the continuation of a trend already observed in 2020. Other platforms related to a single lending group include :

Platform’s websiteLoan originator
MonceraPlacet Group
EsketitCreamfinance
ViaInvestViaSMS
LendermarketCreditStar
RobocashRobocash Group
KvikuKviku Group

The relationship between the platform and the originator isn’t always crystal-clear. For example, the only structural relationship between Lendermarket and CreditStar is that they have the same beneficial owner. Ties between Moncera and Placet group are also rather loose : indeed, the platform was started by former employees but there’s no formal link.

On the other hand, it’s straightforward to understand the link between Afranga and StikCredit. As stated in an interview with Afranga’s COO, they’re the same legal entity. Afranga’s name also appears in a very prominent way on in StikCredit’s most recent annual report :

Loans descriptions

In addition to the loan’s structure and repayment schedule, Afranga discloses basic information about the borrower.

Mintos investors will notice that this screen looks very similar to its equivalent at Mintos. It’s also the case for several other pages on the website.

Loan originators reliability

I will never emphasize it enough : it’s critical for P2P investors to focus on loan originator’s reliability. Many originators on Mintos were of dubious quality, which causes sometimes large losses for investors. If the marketplace successfully recovered the whole capital invested in Aforti after long legal proceedings, the recovery rate for former originator E-cash was a pitiful 35%. In other words, investors lost two thirds of the invested amount !

Annual report for fiscal year 2020 is available for download on Afranga‘s website. It show a 2021 profit of 4.5 million BGN, which is roughly equivalent to 2.4 million euros. It’s a 40% increase compared to the 2019 figure, in spite of the Covid epidemics !

Many competitors have their financial reports audited by a reputable audit firm. For example, Placet Group’s report was audited by Ernst & Young, while the audit for Robocash‘s annual report was conducted by KPMG. On the contrary, although StikCredit’s report underwent an audit, it was done by a lesser known firm.

Investors who don’t want to analyze financial reports will appreciate the great work by ExploreP2P, which provides ratings for most loan originators. Their rating for StikCredit is 65 out of 100. It’s definitively lower than the rating for Robocash (81) or Moncera‘s Placet Group (79) but still enough to make the top 10.

Reporting & statistics availability

Unlike most competitors, Afranga doesn’t have a dedicated page for statistics such as funded volume or investors count. The only public figure was a post in April 2021, celebrating their first million in outstanding investments.

However, statistics for StikCredit’s portfolio are available. In addition, the funded volume provided by P2PMarketData reached three millions. Because the platform has been operating for a very short time, this figure is much lower than for basically all competitors.

Finally, even unregistered users can access the list of available loans.

Track record

As a recent platform, Afranga doesn’t have much track record. On the other hand, StikCredit has been operating since 2013.

Platform's features

Early exit

Early exit NOT AVAILABLE

Investing methods

Auto-invest

Manual investing

Manual investing

Investing manually at Afranga is trivial. There’s a wide array of filters available :

  • Loan’s interest rate and duration
  • Listing date
  • Available amount
  • Loan status and type

In addition, it’s possible to exclude loans already invested in – which I recommend, in order to increase diversification -.

Auto-invest

Although it’s easy to invest manually, I always recommend P2P investors to switch to automatic investing. Indeed, it will save time and reduce the probability of making mistakes.

It’s possible to have several strategies, although most investors probably won’t use this feature.

The available filters are similar to those for manual investing. In addition, it’s necessary to configure the portfolio’s size as well as the reinvestment option.

The number of matching loans is displayed, which is very handy. Indeed, as can be seen in the screenshot above, there’s currently no loan matching my criteria. This is due to the fact that very few loans have a term shorter than 6 months. Thanks to the relatively small size of my portfolio, I still manage to invest it totally. However, if I were to grow its size, I would probably have to switch to a slightly longer term.

Secondary market

With the notable exception of Lendermarket, most competitors provide a way for investors to exit their loans early. For example, Robocash has a free secondary market, and Moncera provides a “One-click exit” feature, for a small fee (0.5%).

It’s unfortunately not the case of Afranga. However, the platform’s FAQ states that they’re currently working on it and expect to release it soon.

In the meantime, the platform may repurchase portfolios at a mutually agreed price. Investors who wish to sell all or part of their portfolio can request it by writing to the support.

Website’s ease of use

Languages

English

Funding methods

Available languages & translations quality

Afranga‘s website is currently only available in English. The translation’s quality is excellent.

Afranga's registration process

Registering with Afranga is very quick. The KYC check requires investors to upload a copy of an identification document, which got validated nearly immediately in my case. I’m actually surprised that they don’t use a more modern KYC process which matches the investor’s face with the picture on the document, such as the one provided by Veriff.

Account funding and funds withdrawal

Currently, it’s only possible to fund your investor’s account via a SEPA transfer. Funds as usually available the next business day.

Withdrawals are free. I didn’t withdraw any money yet (quite the opposite, in fact) so I don’t know how quickly such requests are processed.

Website’s design and ergonomics

As already noted, Afranga’s overall design has many similarities with Mintos’ website. However, I find Afranga‘s screens more readable.

Overall, the website is very pleasant to use. It’s fast, easy to navigate, and provides basically every feature a P2P investor may need.

Reporting

Afranga‘s dashboard provides detailed portfolio statistics. In addition, the usual array of reporting features such as the investments list and account statement are available.

Documentation

The FAQ A FAQ is simply a compilation of Frequently Asked Questions is detailed enough to be helpful. In addition, the “How it works” page provides a brief overview of the investing process.

Communication & support

Afranga doesn’t communicate much; however, investors will be notified of important milestones or new features by e-mail.

The platform’s Facebook page similarly feels rather empty. Indeed, the last post was published in April 2021 !

On the other hand, StikCredit’s business development manager Svetlin Sabev is very active on Afranga discussion group on Telegram. It’s the best place to ask questions or provide feedback regarding the platform.

Official Afranga pages on social networks

Support

Afranga‘s support can be reached by phone or email.

Actual performance of my Afranga portfolio

12,34%

At the end of August 2021, the XIRR for my Afranga portfolio was 12,34%.

After roughly one semester on the platform, the performance for this portfolio is getting closer to its theoretical value of 16%. It's already among the highest ones for P2P platforms, as only my Lendermarket portfolio has a better performance.

Don't hesitate to read my most recent crowdlending portfolio review for detailed platforms performance comparison as well as historical performance.

For a detailed comparison of the different p2p-lending marketplaces, check out this article.

Portfolio creation date

I created my Afranga portfolio in March 2021

Afranga's main competitors

Afranga's facts & figures

Location

Shumen, Bulgaria

Founding year

2021

As of August 2021

Who can invest at Afranga

Any individual investor who is at least 18 years old, has a citizenship in an EU/EEA country, a bank account in a EU/EEA country, and resides in a country that is considered to have an equivalent AML/CFT system to those of the European Union. In order to be able to add funds to your account, you must pass our verification process.

Afranga's FAQ

In conclusion...

When considering the current interest rates at most competitors (less than 10% at Moncera, 10% for very reliable loan originators at Mintos, 12% at Robocash and ViaInvest...), it's hard not to like Afranga ! Few platform currently offer such a good balance between performance and reliability.

In addition, the platform's spotless ergonomics makes it very suitable for beginner investors.

Overall, I consider that it's an excellent complement to Robocash for investors who want to diversify their portfolio using reliable loan originators.

Disclosure

Please note that this review may contain affiliate links. It means that I will earn a commission if you decide to invest after clicking through the link – at no additional cost to you, of course -. Please understand that I have experienced all of these companies, and I recommend them because they are helpful and useful, not because of the commissions I make if you decide to invest through my links.

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