Bondora review

Bondora review

Bondora's overview

Bondora provides individual loans. The yearly interests rates vary greatly depending on the borrower’s profile; they can be as high as 200% (!) for the most speculative ones. Of course, given their sometimes insane interest rates level, these loans don’t come with a buyback guarantee, and the default rate is huge.

My opinion on Bondora

Too much marketing, not enough returns : Bondora totally fails to deliver the expected results. It’s hard to be confident in long-term results when a portfolio’s returns decrease month after month !

 

Detailed ratings

Interests rate

If the interest rate can be very high, the resulting default rate is correlated; as such, the final performance is deceiving.

Loans liquidity

A huge volume of loans is available on Bondora.

Reporting

Many statistics are available, but they’re not really useful.

Buyback guarantee

There’s no buyback guarantee.

Website ergonomics

The website is overall pleasant to use.

Loans characteristics

Loans duration

1 month – 1 year

More than 1 year

 

Loans kind

Individual

Minimal investment

€10

 

Buyback guarantee

NO buyback guarantee available

Currencies

Euro

 

Platform features

Secondary market

Secondary market available

Auto-invest

Auto-invest available

Languages

Eesti, Español, Suomi, Deutsch, Pусский, Čeština, Français, Norsk, Italiano, Svenska, Dansk, Polskie, Nederlands, Português

Funding methods

Bondora's pros and cons

Pros

  • Investing is very easy using Portfolio Manager
  • Excellent liquidity

Cons

  • Actual returns are far from the expected ones

Who can invest​

Anyone over the age of 18 living in the European Union, Switzerland or Norway and businesses registered in the EU or from any other country approved by Bondora. If you are an investor from Australia, Brazil, Canada, Hong Kong, India, Japan, South Korea, Mexico, Singapore, South Africa or The United States of America then we need to verify that you are an “accredited investor”. As part of the verification process we ask you to send us different information and documents.

(Bondora FAQ)

Bondora's competitors

Overview of Bondora

Bondora is an Estonian P2P lending company. They provide unsecured loans with a simpler approach than most competitors. Three investing mechanisms are available :

  • Portfolio Manager, where you only have to choose a profile from “Ultra-conservative” from “Opportunistic”
  • Portfolio Pro, which is basically the save as the auto-invest at Bondora’s competitors
  • Go & Grow, a very simple product targeting a 6.75% annual return. I will review this one separately later.

Portfolio Manager

Most P2P lending sites allow you to specify at least a risk level and a desired interest rate and often have a granularity by country. Unlike those, Bondara only lets you choose an investment profile, and gives you an estimation of the expected return.

This estimation should really be taken with a pinch of salt; I have yet to read a review of Bondora where the expected returns were met.

Portfolio Pro

This feature is actually an auto-invest. It allows you to configure the desired country, borrower’s rating, loan duration and maximal investment by broker. Given these parameters, it estimates the returns and matching loans volume.

Website ergonomics

Browsing the website is straightforward and it’s easy to find what you need.

Reporting

There are many reports available, including a handy cashflow planning. Here’s a sample of what you’ll find on the statistics screen :

Bondora’s statistics

You also have the opportunity to create reports like the list of your investments, account statement, tax report… and export them as Excel files. That’s very handy for those who want to compute statistics themselves !

Actual performance of my Bondora portfolio

Initially, the expected performance of my portfolio was above 16%. In reality, it’s currently below 12% and sinking a bit more  every month. Bondora’s advise is that investors should keep on investing, as recoveries are supposed to improve the performance later. I’m totally unconvinced by this response, and started cutting the size of my portfolio.

Conclusion

If only Bondora spent as much time improving the returns as they spend working on their marketing, all their investors would be rich. But for now, all we have is promises of great expected returns. I’d advise investors not to listen to their marketing tricks, and to invest through a company that actually focuses on investors.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.