Monthly Loan origination summary – June 2016

Dear readers. Last month we kicked off with different monthly overviews here on the blog. If you missed the updates, here are the links – loan origination overview for May and portfolio performance update.

General market activity in June was dominated by Britain’s EU referendum. Despite the current uncertainty around it, June provided another encouraging month for Bondora.

In June 2016 we processed €37,831,605 worth of loan applications, out of which we approved €4,831,495 (13%) to the marketplace. In total our investors financed €2,070,975 worth of loans.

Below is our loan origination update for month ending June 30, 2016 which highlights some of the key aspects in country and grade level.

Loan origination by country

Share by country – June 2016
Country Interest Amount Share
ESTONIA 25,74% 1302575 62,9%
SPAIN 55,93% 224495 10,84%
FINLAND 32,31% 543905 26,26%
Total 30,74% 2070975
  • We continue to see heightened activity around the Estonian loans. Out of all the issued loans in June 2016, the largest share of 62,9% went to Estonia in the amount of €1,302,575. Followed by Finland with 26,26% and Spain with 10,84%.
  • Borrowers from Spain pay the highest interest rate of 55,93%, followed by Finnish borrowers with 32,31% and Estonian borrowers with 25,74%.
  • Although the interest rates are still very high in Spain, compared to May 2016 they have decreased by 2,5 percentage points, hence becoming less riskier for the investor.

Loan origination by grade

Share by country and grade – June 2016
Loan origination by grade - EstoniaESTONIA Loan origination by grade - SpainSPAIN Loan origination by grade - FinlandFINLAND
BR Interest Amount Share Interest Amount Share Interest Amount Share
AA 9,61% 20920 1,01%
A 12,43% 55700 2,7%
B 16,22% 189680 9,2% 14,72% 1060  0,1%
C 21,06% 318975 15,4% 22,10% 80170 3,9%
D 26,13% 253830 12,3% 28,23% 164160 7,9%
E 32,04% 267320 12,9% 35,53% 14140 0,7% 33,41% 134100 6,5%
F 38,30% 169425 8,2% 42,27% 33995 1,6% 38,89% 136015 6,6%
HR 42,80% 26725 1,3% 60,08% 176360 8,5% 48,76% 28400 1,4%
Total 1302575 62,9% 224495 10,8% 543905 26,2%
  • The shares over countries and risk grades in June 2016 have been very much alike the ones in May 2016.
  • When looking at origination by country and grade level, Estonian C-E grade loans make up the largest share of loans issued in the amount of €840,125 making it 40,6% of the total issued amount.
  • Spanish E grade has almost doubled its share compared to May 2016, moving from €7845 to €14,140 in June 2016. But it is still a very small fraction of the total issued amount.

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2 thoughts on “Monthly Loan origination summary – June 2016”

    1. Hi! Our current credit model rate Spanish loans quite conservatively and currently it’s capped with D being the highest grade.