Double-digit Origination Growth for Bondora

Market & Pricing

In April, there was significant growth in Bondora’s originations. Total originations increased substantially by 19.4% to a total of €9,224,428. This is an almost identical growth rate compared to the 19.5% growth rate in March. This is the 4th consecutive month that we see impressive numbers for new loan originations.

We saw double-digit origination growth for Bondora in April.
We saw double-digit origination growth for Bondora in April.

Breakdown by country

The considerable 19.4% growth rate manifested despite the continued limitation on originations from only Estonia and Finland. Finnish originations grew the most—up by an astonishing 84.5% to €2,554,078. This growth brought the total share of Finnish originations to 27.7% of all originations, compared to 17.9% in March. Additionally, interest rates for both Estonian originations (26.9%) and Finnish originations (19.1%) were both higher this month.

Origination by country – April 2021
Origination by country – April 2021

Once again, only D-rated loans were originated in Finland. As for Estonian originations, the most growth came from E-rated originations, which totaled €1,014,163 on the month, a month-over-month growth rate of 38.4%. Additionally, interest rates across all Estonian rating categories were higher on the month.

Origination by rating/country – April 2021
Origination by rating/country – April 2021

Loan amounts

The average loan amount for both Estonian and Finnish originations was lower in April. Estonian originations averaged €2,778 this month, a nominal decline of 0.2%, while Finnish originations averaged €2,706, down 8.0%.

Average loan amount – April 2021
Average loan amount – April 2021

Loan duration

Finnish originations were, on average, slightly shorter in duration, averaging 56 months, compared to 57 months in March. Estonian originations once again ended the month with an average of 56 months.

Average loan duration  – April 2021
Average loan duration  – April 2021

Compared to March, there were no significant changes to the ratio of Estonian loan durations. Finnish originations skewed more toward shorter durations, with 6- and 12-month originations seeing the biggest increase (apart from 60-month periods).

Number of loans per duration – April 2021
Number of loans per duration – April 2021

Average age

The average age of Finnish borrowers fell in a sizable way, down to an average of 45 years from 48 years in March. This means Finnish borrowers started to skew younger on average than in previous months. Meanwhile, Estonian borrowers are still averaging 37-years of age for the third consecutive month.

Average age – April 2021
Average age– April 2021

Income

The average income of Estonian borrowers continues to trend downward, totaling €1,520 in April—a 19.6% decrease from last month. On the flipside, Finnish borrowers had higher incomes this month, averaging €3,247 compared to €3,165 in March. This is a month-over-month increase of 2.6%.

Average net income table – April 2021
Average net income table – April 2021

Education

Education levels of Bondora borrowers maintained the same trends as previous months. High school education accounted for 42.0% of all Estonian borrowers, maintaining its trend as the most common education level for borrowers out of the country. Finish borrowers were still more likely to have a vocational school education, which accounted for 45.7% of all Finnish borrowers in the month.  

Education – April 2021
Education – April 2021

Employment

This month, borrowers employed more than 5 years (33.1% of all borrowers) surpassed those employed up to 5 years (32.2% of all borrowers). Bondora borrowers are least likely to be retired, with only 6.0% of all borrowers being retired in April.

Employment – April 2021
Employment – April 2021

Homeownership status

During April, the percentage of tenants (21.1%) and mortgage holders (5.4%) for Estonian borrowers declined. Meanwhile, the number of homeowners increased, accounting for 42.4% of all Estonian borrowers compared to 40.6% of borrowers in March.

After 56.3% of Finnish borrowers were homeowners in March, only 49.9% of borrowers were in the same category this month. There was a jump in Finnish tenants, which accounted for 33.6% of Finnish borrowers this month, compared to 28.0% of borrowers in March.

Homeownership status – April 2021
Homeownership status – April 2021

Verification status

Finnish borrowers didn’t hit 100% verification this month, but only because just one Finnish borrower was unverified. The Estonian verification rate was almost identical to last month, coming in at 98.2% versus 98.1% last month.

Verification status – April 2021
Verification status – April 2021

Originations grow once again

With a 19.4% month-over-month growth rate, Bondora originations impressed yet again, totaling €9,224,428 in April. With Finnish originations growing 84.5% this month, it’s no wonder that Bondora could achieve double-digit origination growth for the third consecutive month.

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