November was another solid month of loan originations at Bondora. Originations were up, and other key indicators showed solid metrics which point to better interest rates for investors in the long-term.

Finnish Loans Jump

The biggest surprise on the month was the growth of loan originations in Finland. Finnish loans jumped from 36.87% of loan originations in October to 50.35% of all originations in November, accounting for a total of €3,974,878. Finnish loans overtook Estonian loans which accounted for 47.01% of loans on the month, or, €3,711,240. Loan originations in Spain increased slightly to 2.63% of the total share of Bondora loan originations.

Loan Origination by Country - November 2018

A large percentage of loan originations in November (40.84%) were F rated Finnish loans. The loans (€3,224,038) in this category were the highest originated credit rating last month, followed by E rated loans out of Estonia which came in totaling €1,006,495, or, 12.75% of total originations.

Bondora loan originations continue to follow a similar trend as the previous month, with mid-grade rated loans from Estonia (rating C, D, E), and lower rated loans from Finland (rating F and HR), accounting for the vast majority of loan originations. Combined, these categories garner 80.7% of all loan originations across Bondora.

Share by rating country and amount - November

Estonian loans, while dropping in the total share of Bondora loans, also dropped in the average amount per loan. An average of €2,190 was loaned to Estonian borrowers on the month, a downward trend for the second straight month. Borrowers out of Spain and Finland borrowed more, on average than the previous two months in their respective countries. Finnish borrowers obtained an average of €3,881 compared to an average of €1,943 in Spain.

Average loan amount - November 2018

Stronger Borrower Metrics

The growth of loan originations in Finland came from borrowers who have, on average, a higher income than borrowers of previous months. The average income of Finnish borrowers in November came in at €2,929, up almost 14% over the previous month. Spanish borrower’s average income increased as well by €399 (24.4%) compared to October. Estonian borrowers had, on average, an income of €1,249, slightly lower than last month.

Average net income - November 2018

Maintaining a historical trend, Bondora makes most of its loans to individuals who have been employed for more than five years (40% of all loans) or up to 5 years (28% of all loans), increasing the likelihood of loan repayment in a timely manner.

Employment duration - November 2018

Loan durations were mixed across the country of origination. Average durations in Estonia were down, but only slightly, to an average of 49 months. Finnish loan durations were up slightly to 56 months, while Spanish loans had the biggest increase in average loan duration to 46 months from an average of 43 months in October. Bondora loan durations range from 3 to 60 months in duration period, with the majority of loans being issued at either 46 or 60 months.

Loan and employment duration - November 2018

The average age of all borrowers across Bondora remained relatively the same as previous months, with slight variations. The average age of Spanish (45 years) and Finnish (48 years) borrowers rose slightly compared to October, while the average age of Estonian borrowers (40 years) was down just a bit.

Average age - November 2018

The last data point to consider in loan originations is housing information. Finnish borrowers are mostly split between being homeowners (374 loan originations) and tenants (345 loan originations). Out of 1,694 loan originations in Estonia, 772, or, 46%, are homeowners. Spanish loan originations come from almost an even split between homeowners, those with mortgages, tenants, and living with parents.

Home ownership - November 2018

The Big Picture

On a macro level, Bondora is continuing to build a strong, and diversified portfolio of peer-to-peer loans. Loan originations throughout Bondora are up, as are key the key indicators which signify a solid portfolio of loans for investors.

It is now Finland where Bondora has the most loan originations, eclipsing Estonia for the first time this year. Finnish borrowers, on average, have a higher income and borrow more money for a longer period of time. In general, Bondora borrowers have higher income levels and a long history of employment, proving Bondora is working with highly qualified borrowers for peer-to-peer lending. These are all positive indicators for those seeking more stable loan investments.

We at Bondora provide detailed loan information on a monthly basis to allow investors to make their own decisions when it comes to loan performance and opportunity. Key indicators such as loan duration, rating, income, employment data, and more, are important to making the best investment decisions for peer-to-peer loan investors.

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