DoFinance review : P2P lending made extra-easy

DoFinance's overview

DoFinance provides a rather innovative offer, perfect for those who want an extra-easy P2P investment with a reasonable performance. Interest rates range from 5% to 9%, depending on the investment duration.

My opinion on DoFinance

I must admit that DoFinance‘s simplicity is very appealing. Anyone who had to face Omaraha‘s interface will probably fall in love with DoFinance ! Although the offered interest rate may seem to be low, a 9% interest rate for a 6 months investment with zero headache is worth considering. Shorter durations are less interesting though.

Detailed ratings

Interests rate

The interest rates are lower than what you can get from potentially more complex P2P platforms

Loans liquidity

That’s not a concern at DoFinance : just select your plan and never worry about availability again !

Reporting

I really feel I’m repeating myself, so : who needs reporting when everything is crystal clear from day one ?

Buyback guarantee

Just like availability, this concern disappears

Platform ergonomics

The offer is so simple that it’s hard to think of missing features

Grupeer's pros and cons

Pros

  • It's extremely easy to invest via DoFinance : no more complicated auto-invest setup or manual loans selection !

Cons

  • The different withdrawal conditions between the offers are confusing
  • Rates are lower than they used to be

Loans characteristics

Loans duration

1 month or less

1 month – 1 year

More than 1 year

Loans kind

Individual

Minimal investment

€10

 

Buyback guarantee

Buyback guarantee available

 

Currencies

Euro

 

Available loans : DoFinance has the simplest offer ever

DoFinance is a bit different from the other P2P lending companies. Usually you either select the loans individually, or use the auto-invest feature in order to filter the loans you want to invest in.With DoFinance, you can still select loans individually. However, the interface is clearly designed to make the task painful, and there’s actually no point in doing so. Indeed, you can instead choose an investment plan where the loans are totally invisible to the investor, making the investment process absolutely trivial. All you have to do is select an investment duration; the corresponding interest rate is visible in for following screenshot :
DoFinance has updated their offer in spring 2018; the interests rate have been reduced, and the early withdrawal conditions changed. Here’s how they currently work :
  • For the 5% offer, you can withdraw your money after waiting 7 days, without any penalty. Interests are paid at investment term.
  • For the 7% offer, the interests are not paid monthly; they will be paid at the end of the investment period (or earlier in case of an early withdrawal). The penalty for early withdrawals depends on how much you want to wait. You can choose to wait 30 days and receive only 5% interest, or wait 60 days and receive the original 7% interest rate. Note that for this plan,
  • Finally, for the 9% offer, the interests are paid monthly. Should you want to withdraw before the investment term, your money will be locked up for 90 days; during this period, your investment won’t yield any interest
It’s a pity that the different conditions seem to complicate the investment process !According to this article on p2phero’s blog, the interest rate is supposed to get increased to a very nice 14% if you invest more than 25000€ (ouch). However, I couldn’t find any reference to in in DoFinance’s FAQ.

Buyback guarantee

The loans come with a buyback guarantee; you’ll always get the planned interest rate, no matter how many loans default.

Platform features

Secondary market

Secondary market available

Auto-invest

Auto-invest available

Secondary market

There’s no actual secondary market; however you can still withdraw your money early. As noted above, early withdrawal conditions depend on the selected plan.

Website's ease of use

Languages

English, German, Spanish, Latvian

Funding methods

Registration process

Registration is quick and easy. The website is well designed and won’t ask you for many informations, so in a few minutes your account will be up and running. My initial deposit was also processed quickly; overall, creating an account with DoFinance is a very easy task.

 

Website's design and ergonomics

The combination of limited features and a well-thought interface makes DoFinance’s website very pleasant to use. But of course, as you won’t need to spend any time baby-sitting your investments, I bet you won’t visit their website often after selecting your investment plan ! The website is available in four languages : English, German, Spanish, Latvian.

Reporting​

Due to DoFinance’s very simplified investment offer, there’s no need for much reporting. The only interesting data are the cumulated interest and the completion date of the investment !
DoFinance portfolio overview
Investments list at Dofinance

Actual performance of my DoFinance portfolio

As there’s no concern of default or loans availability, you get what you sign for. No more, no less ! In my case, 12% returns for my previous investments (when the interest rates were higher than currently).My initial investment period of 6 months expired at the end of February 2018. The XIRR computed at this time was 11.95%, which was close enough to my taste. I re-invested the resulting amount – including the interests – for another 6 months.

DoFinance's competitors

Readers interested in a detailed comparison between DoFinance and their two main competitors (Mintos predefined strategies and Bondora’ss Go & Grow) can refer to our article on one-click-investing.

Who can invest

You must be at least 18 years old, have a valid e-mail address, valid documents (passport or identification card) and bank account within the European Union, Switzerland or any other country of the EEZ, which is not included in the lists of high risk and non-cooperative jurisdictions or is not subject of international sanctions.  (Dofinance’s website)

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