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 ! 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.

Detailed ratings

Interest rates

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.

Bondora’s pros & cons

Pros

  • Investing is very easy using Portfolio Manager
  • Excellent liquidity

Cons

  • Actual returns are far from the expected ones

Loans characteristics

Loans duration

1 month to 1 year

Loans kind

Individual

Minimal investment

€10

Buyback guarantee

NO buyback guarantee

Currencies

Euro

Bondora’s Go & grow

There’s a specific review for Bondora’s Go & Grow, where I compare it to Mintos predefined strategies and DoFinance.

Platforms features

Secondary market

Secondary market available

Auto-invest

Auto-invest available

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, Bondora‘s Portfolio Manager 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.

Secondary market

Use of secondary market is free

Auto-invest feature

Auto-invest is actually called Portfolio Pro at Bondora. 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’s ease of use

Languages

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

Funding methods

Website’s design and 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 Bondora portfolio was above 16%. In reality, as of November 2018 it currently stands below 10% and sinks a bit more each 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.

Bondora’s competitors

Bondora’s facts and figures

Location

Tallinn, Estonia

Loans amount financed

€ 164 900 000

Historical return

10.7%
As of November 2018

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)

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.

2 thoughts on “Bondora review”

  1. I was considering investing in Bondora but have seen some awful reviews lately, they seem to have a huge number of loans defaulting compared to their competitors.

    • Well, it’s indeed hard to find someone who actually enjoys Bondora. Maybe in the very long term returns will improve (once recovery really kicks in); however for now it’s hard to recommend them. Even Go & Grow doesn’t really entice me, I really prefer DoFinance. It’s hard to trust a company that promises so much and delivers so little. (Plus I admit I’m sooooo fed up with seeing their advertising on YouTube all the time 🙁 )

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