Omaraha offers mostly partially secured personal loans. The highest interest rates currently available for these loans are slightly above 19%; at least 60% of their capital is covered by the buyback guarantee.
My opinion on Omaraha
I used to really love Omaraha and have invested up to 60% of my P2P assets there. For a long time, it was totally worth investing some time (and of course money) there, in spite of the terrible interface. But now that the interest rates and loans volume have decreased, it’s harder to recommend it as much as I used to; I’ve also reduced my portfolio’s size.
In spite of this, for investors who want to focus solely on individual loans, Omaraha still offers the best returns.
Omaraha’s pros & cons
- Excellent performance, in spite of the lowered interest rates
- Buyback guarantee is only partial
- Omaraha’s website looks terribly dated and is very hard to use
- Currently there aren’t enough loans on the platform to meet all investor’s needs
- Lack of secondary market or early exit option
Overview of Omaraha’s loans
All of Omaraha’s loans are in Euro.
Although it’s possible fully secured loans, their interest rates really aren’t competitive. Indeed, current interest rates for a 4 months duration is 6%.
Omaraha‘s real strength is their partially secured loans. All the new loans I invest in are long-term (4 or 5 years) Estonian loans with the highest rating. The gross interest rate for these is currently around 34%. Omaraha’s commission is 30%, subtracted from this gross interest rate; as a result, the net interest rate is around 24%.
That’s my first critic towards Omaraha : why don’t they display only the net interest ? It would make things much easier for investors.
I have some leftover loans from Slovakia and Finland but they didn’t perform as well. Indeed, Slovakia’s default rate has been extremely high in the past so I’m wary about investing there, no matter what the interest rate is.
In 2018, the loans supply at Omaraha often wasn’t enough to meet the investors’ demand. In 2019, things seem to have improved.
Omaraha‘s partial guarantee is provided through a warranty fund. It will reimburse between 60% and 80% of the loan balance when the payment is more than 3 months late. The current amount of money in the warranty fund is visible on the help page.
While this amount used to be around € 70,000, it’s now very close to € 200,000, and recent defaults were compensated between 60% and 70%.
Omaraha doesn’t provide this feature, which means you won’t be able to resell your loans before the maturity date.
Manual investing at Omaraha
I use mostly auto-invest, although I also used to select loans manually from time to time.
The ‘Loan applications’ screen, which displays the most recent applications, doesn’t support filtering; you can sort the columns, though. In any case the amount of loans here is rather limited and the auto-invest portfolios will often fill up all available loans, so I strongly advise you to mainly use auto-invest.
Setting up Omaraha‘s auto-invest (actually called “Investment terms” on the website) is not too difficult once you figure out what interest rate to request for each credit rating. And that’s not an easy task at first.
For each duration, you can indicate the gross interest rate (paid by the applicant) and maximum amount. The bonus allows you to speed up auto-investment : it will give a chunk of interests back to Omaraha, in exchange for a higher priority. I always leave it at 0%, as I’m not in a hurry to invest my funds. The actual interest you’ll receive is displayed as “Loan interest”, but be warned that the bonus doesn’t seem to be taken into account !
But how do you figure out which interest rate to offer ? The “Offers” button displays the following screen.
This table shows the currently available interest rates for each duration and rating. Is has been much simplified compared to the previous version, a more than welcome change ! The previous one was basically unreadable; it’s good to see that Omaraha is finally making some efforts towards a more easily used website.
Note that setting the interest rate slightly below the value displayed by the table may speed up your auto-invest speed, as there will be less competition between investors at lower rates.
Website’s ease of use
Account funding and funds withdrawal
Instructions regarding deposits and withdrawals are available under Accounts / Transfer.
Funding you account via a SEPA transfer usually takes 2 day. It will mostly depend on your bank as Omaraha processes deposits quickly. Don’t forget to fill in your reference number !
Unlike most competitors, Omaraha charges you for withdrawals. They cost € 0.50, which of course isn’t expensive but I obviously prefer platform to have no fee for investor !
As a side note, Omaraha’s terrible website designer has struck again in the withdrawal page. You can’t withdraw money directly from an investing account. You first have to move funds from your specific country account to the virtual account, then you can withdraw them from this account. This adds a totally useless step to the withdrawal process.
When withdrawing funds, your bank account may not be displayed. This seems to happen if the name provided by your bank doesn’t exactly match Omaraha’s records. It may be caused by accents in your name, or if you omitted your second name. In this case, contact the support via the link titled “click here” under “Support” (once again, Omaraha’s color scheme doesn’t make this information very visible).
Website’s design and ergonomics
That’s my #1 concern with Omaraha. While there’s been some improvement on the interest rates screen, there’s still a lot to do.
For most websites, it’s straightforward to invest your money, either manually or automatically. But Omaraha makes this task rather hard, due to a poor user interface and weird design choices. We already saw that they choose to display the interest rate paid by the borrower (gross rate) instead of the interest rate paid to you, but there are other choices just as annoying.
Take the credit rating : most P2P lending sites rate credit a simple way, like A / B / C. Omaraha, on the other hand, uses a credit rating (called “score”) between 0 and 1000, and only accepts requests scoring above 600. So as investors, we only saw scores from 600 to 1000. Why not simplify the scale ,
Just to show again you how little they care about bells & whistles, here’s an e-mail sent by Omaraha , announcing the opening of a new country :
Apparently HTML emails are too cutting-edge for Omaraha !
Available languages & translations quality
Surprisingly, the English translation of Omaraha‘s website is really correct; their translator is apparently much more talented than their web designer !
The statistics are rather basic, and just like the rating system, you’ll struggle a bit at first before understanding it.
Well, there’s an “Investing help” section, I can’t deny it. Unfortunately it’s totally useless, so investors are basically left alone understanding how things work.
Finally one positive aspect ! I’ve been in touch with the support twice and their answers were quick and helpful. There’s also an English forum which you can use for general questions.
Communication from the platform
Omaraha is quiet, very quiet. In 3 years at the platform, I only received slightly more than 10 e-mails. Out of these, exactly ONE was in English; the others were in Estonian and thus unreadable.
Actual performance of my Omaraha portfolio
At the end of December 2019, the XIRR for my Omaraha portfolio was 19,79%.
Don't hesitate to read my most recent crowdlending portfolio review for detailed platforms performance comparison as well as historical performance.
Portfolio creation date
I created my Omaraha portfolio in November 2016.
Omaraha's main competitors
For a detailed comparison of the different p2p-lending marketplaces, check out this article.
Omaraha's facts & figures
Loans amount financed
As of January 2020
Who can invest at Omaraha
Omaraha Terms Of Service
Investor – a person of at least 18 years of age who resides permanently in Estonia or in another European Union country who has a valid identity document (passport or ID-card) issued in said country and who has signed the general Investment Terms through the Portal’s Investment Account. An Investor may also be a legal person if granting credit is not its principal commercial, economic, or professional activity and the granting of credit to a natural person is not deemed consumer credit under the law of the Borrower’s country of residence.
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.