Overview of Bondora
Bondora is an Estonian P2P lending company. They provide unsecured loans with a simpler approach than most competitors.
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. I chose the highest possible value, thus a large part of my portfolio is invested in loans labeled as “High risk”. The interest rates on these are rather incredible, but so is the default rate. You may want to choose a less aggressive setting !
People looking for more customization may want to take a look at Bee Plus which allows you to create investing rules.
One thing to note about Bondora in general : they love marketing and will never miss an opportunity to incite you to invest. Following this rule, most of the portfolio manager shows a nice graph displaying the expected growth of your portfolio.
Browsing the website is straightforward and it’s easy to find what you need.
There are many reports available, including a handy cashflow planning. Here’s a sample of what you’ll find on the statistics screen :
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
Bondora displays a Yield to maturity of 17.49%, slightly above my computed XIRR of 17.07%. This is lower than Omaraha’s value, but still great. However the trend is clearly going down, as the default rate regularly increases.
Many investors have expressed worries about the increase of defaults rate. Some even reported a negative XIRR ! While Bondora is my second largest portfolio, I won’t add more funds until the returns stabilize.
Despite the lack of customization, Bondora offers nice returns for a very low amount of work. However if you’re a beginner, I would advise you to proceed with caution.
|Interest rate||There’s something for everyone 🙂|
|Loans availability||My funds only need a few days to get totally invested|
|Buyback||No buyback available|
|Website ergonomics||It’s easy to use|
|Reporting||Many statistics are available… but they’re not very useful unless you use the API|
|Global rating||Bondora is easy to use and offers nice returns, but the increasing default rate is a bit worrisome|
(last update : December 16th, 2017)