If you are a new investor on our platform and don’t have many repayments from our investments yet, you may notice that your return rate may change significantly overnight. This happens because of the way we display your return, which is an annualized figure. To calculate your annualized return rate, we account for all actual…
In general, longer maturity of a loan is usually associated with higher risk; thus, some investors avoid investing into loans that have a duration of over 36 months. However, over 50% of the loans that came to Bondora marketplace this year had duration of over 36 months, so we decided to analyze if investors are…
We are preparing for the launch of a Bondora Rating that would be used to estimate risk of loan applications and would like to give you an early preview of the upcoming change. The model used for calculating the Rating accounts for market specific levels of probability of default, exposure at default and recovery rates; thus, incorporating…
We hit another record month this September with originated loan volume reaching EUR 2.25 million or a 10% increase from August. Big thanks to all our investors for the continued trust. We are constantly working on providing you with a larger selection of profitable investment opportunities.
We recently experienced a major increase of applications from people looking to refinance their credit card balances. The proportion of demand for refinancing other liabilities in Estonia for the months in 2014 amounts to nearly twice as much as in our total portfolio with all other countries included. The demand accounts to 160% compared to the same period in the…
Our investors had a possibility to ask our CEO Pärtel Tomberg any question, which they found important about our product and the company on our Facebook page. We thank you all for the meaningful questions. Please find Pärtel’s answers below. Q1 Dear Pärtel Running a peer-to-peer lending site is definitely a hard thing to do. Every day…
Today we are speaking about Bondora portfolio returns and introducing the changes, requested by the investment community. Please scroll down for more information. New Bondora milestones We are happy to announce that Bondora has reached 2 new milestones: 20 million EUR issued in loans to borrowers 2.6 million EUR paid out in interest to investors…
On June 18th P2P Finance Association announced that their members will be using a standard way to calculate default rates to help consumers compare the performance of the portfolios on different platforms. In short, the new standards consider a loan default when it has been overdue for at least 120 days. You can read more…
The Peer-to-Peer Finance Association (P2PFA) guidelines consider that a loan defaults after any portion of the loan is not repaid after 120 days following the original loan repayment date. We have a more conservative approach and consider a loan defaulted when a borrower has missed a scheduled payment by more than 60 days (or, in other…
Today we are writing about the default rate and the recovery rate of the defaulted loans. How is the default rate calculated? Some of you have asked us different questions about the default rate. In order to answer them, we first need to give a definition of the default rate. In our case, a loan…