For the second consecutive month, originations on Bondora increased. Total originations rose by 4.7% to €3,114,157 in October. Once again, Estonian originations were the only loans originated by Bondora, but this continuous rise in performance makes it a sustainable option for Bondora for the time being.
Interest rates did decline further, coming in at 33.5% compared to 35.7% last month.
Originations skewed toward higher ratings
Estonian originations skewed more toward B- and C-rated loans in October. C-rated loans grew by 3.0% to 33.3% of all originations, while B-rated loans grew to 8.3% from 3.2% last month. Meanwhile, interest rates remained consistent across C-, D-, and E-rated loans, falling within 1% of rates month-over-month. B-rated loans had the largest decrease in interest rates, falling by 1.8% to 19.0%.
Average loan amount increases for the second month
The average loan amount for Estonian originations grew for the second month in a row. In October, originations averaged €2,357—up from €2,294 in September, indicating a 2.7% increase.
Loan durations remained constant at an average of 56 months, which is the same as September, and still a month longer, on average, than in August.
Once again, the longest duration loans of 60 months grew, this time to a total of 990 loans from 977 last month. As a result, 60-month loans account for 75.0% of all Estonian originations. The next highest percentage is for 24-month originations, which only accounts for 5.8% of all originations. It indicates that Estonian borrowers favor the most extended loan period.
Net income finds a middle ground
After a very up and down the previous two months of borrower average net income, October’s number settled right in the middle. An average borrower income of €1,648 is up 32.7% from September but still 39.3% lower than the average income in August.
Maintaining the trend, the average age of Estonian borrowers was once again 38-years old. This makes it the fifth month in a row for the level of consistency.
The only education category to fall in October was vocational school education, which accounted for 24.1% of borrowers compared to 25.6% in September. High school graduates continued to make up most Estonian borrowers, coming in at 41.1% of all borrowers.
Employment comes in strong
The ratio of borrowers with long-term employment slightly increased in October. Borrowers employed more than 5 years totaled 420—31.8% of all Bondora borrowers, while those employed up to 5 years totaled 502—38.0% of all borrowers. The only category to decrease was borrowers employed up to 1 year, which fell from 275 to 265.
Home ownership status
The number of borrowers living with their parents in October fell to 185, accounting for only 14.0% of all borrowers, decreasing 21.6% from September. Homeowners are still the most common borrower type, increasing slightly from September to 44.0% of all Bondora borrowers.
The ratio of verified originations fell for the second month. However, the decrease was minimal, with 91.0% of originations verified in October compared to 91.5% last month.
Increased originations in October
Even amidst uncertain times, Bondora loan originations have increased while maintaining key origination metrics. This stable growth is how Bondora continues to provide people with a method of maintaining financial stability.
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