Bondora Review 2019

0 / 5
Overall score
Risk/Reward
4/5

High amount of loans available with large variance in interest rates and associated risk.

Easiness of use
4/5

Slick and easy to use site. Very marketing heavy. Many statistics available.

Protection
4/5

One of the larger platforms with good selection of loans. No buyback guarantee available. 

Return
3.5/5

The high return loans come with considerable risk. Other options are less risky but returns are also considerably lower.

WE LIKE

  • 10 year track record
  • Simple user interface
  • Broad range of services available
  • Active secondary market

WE DON'T LIKE

  • No buyback guarantee
  • High risk associated with the higher interest loans
  • 'Marketing-heavy'

SUMMARY

Bondora is one of the oldest crowdlending platforms, and it is focused solely on consumer loans. It offers different options for different types of investors, from the easy Go & Grow plan to Portfolio Pro for advanced users. The loans come without buyback guarantee and can be traded on a secondary market.

Key characteristics

HiSTORICAL avg. RETURN

10%

Loan Types

CONSUMER LOANS

YEAR LAUNCHED

2007

TOTAL INVESTED

€ 280m+

TRUSTPILOT RATING

4.8/5

BUYBACK

NO

SEC. MARKET

YES

AUTO-INVEST

YES

Bondora Overview

Bondora is one of the oldest and best known P2P lending sites. If you are considering investing through the platform, we recommend using this Bondora review to assess how reliable and secure Bondora is for investors. 

What is Bondora?

Bondora is one of Europe’s largest non-bank consumer loan providers. The consumer loans that Bondora offers are marketed in Estonia, Spain and Finland. 

Bondora mainly focuses unsecured consumer loans with a repayment terms ranging between 3 and 60 months

Bondora is licensed as a credit provider by the Estonian Financial Supervision Authority, the primary regulatory body in Estonia.

What is Bondora Go & Grow?

Go & Grow is the simple automated investment service that allows you to earn an estimated 6.75% p.a. on your investment  with a lower risk profile and the ability to take your cash out again at any time.

The other two options are Portfolio Manager which is the basic loan allocator and Portfolio Pro which provides more control of what loans to invest in Go & Grow is a fully liquid ‘fund’ that gives you a fixed return.

Is Bondora safe to use?

To review how safe Bondora is to invest in, we consider the reputation of the platform and the available loans:

Bondora is a platform with a 11 year track record. It has gone through difficult development stages but evolved in a robust and transparant platform that is trusted by more than 80.000 investors.

Bondora offers two different products with quite different risk profiles.

The portfolio products use a direct investment structure, which means that investors are lending directly to the borrower and if if the borrower goes out of business you run the risk of losing your investmented amount.  Bondora in this structure is just the platform facilitating the transaction.

The ‘Go & Grow’ service is using the indirect investment structure, which means that you lend money to Bondora, and they lend it to borrowers. The risk profile in this structure is quite different, as only when Bondora goes bankrupt the investors will lose their investment in ‘Go & Grow’. 

You can consider the following in your Bondora investment strategy to limit the risks:

  • Limit investment in highest interest loans to reduce risk of defaults
  • Diversify your portfolio by using ‘Go & Grow’ for at least part of your investment