40,913 investors have already invested EUR 148 million through Bondora and have received EUR 19 million in interest

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Earn a 9% Return with well diversified risk

40,913 investors have already invested EUR 148 Million through Bondora and have received EUR 19 million in interest.

70% of investors - including 253 from United States of America - have earned over 9% annually.

With the Crowdfunding, Everybody Wins

In today's financial world, it’s all about the "crowd" – connecting lenders and investors that have unique needs and goals with similarly diverse individuals and businesses seeking loans or equity capital. In Europe, the Americas and Asia, a host of new platforms have sprung up, supported by innovative technologies and the expansive reach of the Internet, that enable participants from various locales to work together and engage in transactions that benefit all sides.

Among the models that have already gained a strong foothold are loan crowdfunding and crowdlending platforms, which focus, naturally enough, on debt-based finance. Others that are gaining ground, such as equity crowdfunding platforms, are oriented toward capital investment. But that’s not the end of it. The alternative finance arena now includes an expanding array of offerings that can accommodate a variety of needs and requirements, including invoice trading and donation and reward-based crowdfunding.

The new world of “finance 2.0”

Although it might be easy to think that crowdlending or crowdfunding or any of the other varieties that are currently in operation are unlike anything that has existed before, that is not quite true. In many respects, these virtual venues are simply the next generation financial exchanges. Like the centralized markets that have existed for hundreds of years in places such as Wall Street and the City of London, online platforms provide an efficient way for countless participants to achieve their financial goals.

One big difference, of course, is that loan crowdfunding and other online marketplaces don't require a trading floor, or even a physical presence beyond what is necessary for operational or regulatory reasons. No matter where they live or work, those who want to transact through these online platforms need little more than a computer or smartphone and an Internet connection to get connected and get things going.

In fact, because these alternative finance models have been designed from the ground up, so to speak, to capitalize on the power of modern technology, they tend to offer greater flexibility and have more user-friendly features than the traditional routes. When seeking a consumer loan through a peer-to-peer lending platform like Bondora, for example, borrowers face fewer bureaucratic obstacles and the underwriting process is much quicker than when applying for credit from a bank or other established institution.

Better returns…and much more

Advanced technologies also make life easier for those who want their money to work harder for them. From having ready access to in-depth insights about those seeking financing – including demographic details, loan-level historical data and broader market trends – to being able to decide – with a click or a tap – when, where, and how they want to be involved, those who have funds to invest maintain a degree of control that is mostly unheard of in dealing with banks, brokerage firms and others like them.

The increased transparency that crowd-oriented platforms offer also benefits both sides in numerous ways. When dealing with traditional intermediaries, for instance, it is often hard to understand or even be aware of all the terms and conditions that may apply, while making fee comparisons among rival firms can be frustrating, at best. However, when it comes to loan crowdfunding platforms, whether for consumers or businesses, things are much clearer. Everyone knows just what the deal is and what happens if things don't quite work out as planned.

Quite simply, there are no "surprises," and nobody gets taken for a ride. At the crowdlending platforms, the rates that borrowers pay is based on creditworthiness and is mostly influenced by competitive forces – it is not “whatever the market will bear.” While this might not seem so enticing for those who are providing financing, the tradeoff is that lenders know as much as anybody about the willingness and ability of prospective borrowers to repay their loans. With a much better understanding about what they are getting into, lenders don't need to factor in a sizable “uncertainty premium.”

More options, whether big or small

Another benefit that these crowdfunding platforms offer is that they open up the financial arena to those who might otherwise be left with limited or no options. In many cases, individuals and firms that might find it difficult to secure financing from a bank or other traditional lender – because of their size, location, line of business or other factors – face fewer obstacles. By tapping a P2P loan or crowdfunding network that is, collectively, much bigger than even the largest global financial behemoth, the odds of getting a deal done are that much greater.

Those seeking financing are not the only ones who stand to gain from going with the crowd. Investors searching for attractive returns, including large institutions with sizable resources at their disposal, can potentially achieve a number of objectives. Not only do they have access to a sizable pool of prescreened prospects, they can also garner significant diversification benefits in a fairly efficient manner. Instead of focusing only on larger borrowers because it seems economical, they can spread their risk among many smaller ones.

From online alternative to a staple of finance

Because crowdinvesting, crowdlending and other alternative finance models have targeted what were once considered niche markets, including small consumer loans, they have also created opportunities for investors to diversify portfolios through exposure to asset classes that were once unavailable to them. Indeed, there have been a growing number of cases where major banks and sophisticated financial institutions have been acquiring interests in and providing funding for these online platforms.

Taken together, these various developments are undoubtedly positive for those who are directly involved. But society as a whole also benefits from an industry that is helping to facilitate healthy competition, more transparency and increased efficiency in the financial world. The online marketplaces have also made it easier for those at nearly every level of society and in countries and regions around the world to cooperate for their mutual benefit.

In sum, when it comes to lending and investing, everybody wins when the crowd is involved.

Learn more about Bondora from our white paper

Our benefits

No fees

There are no fees for investing in the primary or secondary markets. A small collection and recovery fee is deducted from the cash flows of delinquent loans.

Fast liquidity on largest secondary market for P2P loans

There is a large internal secondary market that enables investors to buy and sell their existing investments. We have developed a fast and automated liquidation feature on our platform.

Highest yielding P2P platform for investors

An international investment bank has identified Bondora as the highest yielding peer-to-peer (P2P) lending platform across the globe.

Advanced analytics to track investments

Investors can access hundreds of data points about the investments available through our marketplace by way of our user interface, data exports or the public API.

All loan data is public

All transaction ledgers and data on issued loans are available via our public statistics and data export pages.

Solid track record

Bondora has solid track record dating back to 2009, providing high returns to investors both in negative and in positive market conditions.

Customer Reviews

Frequently asked questions

What is Bondora?

Bondora.com is a leading peer-to-peer (P2P) lending platform for investing in European non-bank personal loans. All loans are issued by our parent company, Bondora AS, which retains a share of the risk of every loan it offers through the Bondora.com marketplace.

How are you able to offer investors “above-market” returns?

Bondora issues loans to individuals in Finland, Spain and Estonia. These markets are underbanked in comparison to other Western European markets, owing to oligopolistic banking structures and the fallout from past financial crises. Uncompetitive banking sectors and a limited focus on consumer finance have created a high-cost environment with little credit available for the near-prime borrower segment.

Do I need a lot of experience to invest through your platform?

In short, no. We provide you with easy-to-use automatic investing tools that make it simple to invest through Bondora. We take care of borrower credit assessment, scoring, payment collection, and collections (in cases of nonpayment), giving you complete peace of mind.

What type of investments can I make through Bondora?

You can invest in Bondora loans, which are fixed-income investments that generate monthly cash flow from principal and interest payments.

How do you determine whether a borrower is creditworthy?

All borrowers are risk-assessed using Bondora’s sophisticated underwriting models and assigned to credit groups where the interest rates offered reflect the relevant risks.

Can anyone invest on Bondora?

Anyone who is over age 18 and living in the EU, Switzerland or Norway, as well as businesses registered in the EU, can invest through Bondora. If you live or work outside the EU in any of the countries that comply with the EU’s anti-money laundering directive, you can invest through Bondora if you are an accredited investor.

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