Bondora is one of the oldest peer-to-peer lending platforms, and I joined early on in my P2P lending journey, around 2016.
While this platform has been criticized by investors in the past, my portfolio has been chugging along quite well over the years, and my only complaint would be about the graphics and UI of the platform, which I find really ugly.
In this Bondora review, I’ll be sharing my results on this Estonian platform, since many of you have been asking me if you should invest in this platform and if so, how to do it.
You probably know this platform by the very distinctive cartoon characters they employ on the website. I find them a bit old-fashioned, but there’s no question that it gives Bondora a very distinctive and memorable branding.
Alright, so let’s dive straight into it.
Bondora’s slogan is “it just takes a minute to beat your bank”, and I would say that’s true. I sometimes forget I even have an account on Bondora as it was super easy to set up since I used their Go and Grow system all along.
Other investors have had tough times with defaults and delays when using other strategies, and that seems to be the source of most of the bad comments about Bondora.
Bondora assigns a rating to its loans going all the way from AA to HR. HR stands for high risk. Those who invested in the riskier loans chasing high returns got burnt.
On the other hand, everyone seems to agree that Go and Grow has always worked just fine.
I would, therefore, recommend that you use Go and Grow if you want to add Bondora to your diversified set of peer-to-peer lending investments.
Through this method, I have been able to obtain a 6.75% return over the years, which I’m quite happy with considering the total lack of work involved from my end.
If we take a look at the latest statistics on Bondora (the platform is very transparent about all the major stats, and that’s a very positive thing), we can see that the net average return is 10.6%, but that takes into consideration investors using other ways of investing on Bondora apart from Go & Grow, so it’s expected that the average return is higher than what I managed to achieve.
Bondora is a loan originator itself, so it’s different from other platforms like Mintos, which act as aggregators of loans (and loan originators).
The secondary market is reported to be quite illiquid, although I haven’t tried it myself as I’m happy to let my money grow slowly in the Go & Grow portfolio.
Another thing to keep in mind is that there are no buyback guarantees on loans, so if a loan gets delayed, you might have to wait a long time until it is eventually recovered.
On the other hand, this is one of the oldest platforms, and the chances of it going bankrupt seem pretty slim to me, and that’s a very positive thing. You will also see that the platform has an extremely high rating on Trustpilot, which wouldn’t be the case if it were a bad platform, especially since it has been in business for so many years and had plenty of time to prove its’ worth.
What are your thoughts on Bondora? Let me know in the comments section below. If you have any questions, do the same, it will help me prioritise your questions as I continue finishing up this article in the coming weeks.
One of the oldest platforms in the P2P lending space, it has built a good reputation and provided solid results over the years for me.
- Reputable platform
- Secondary market
- Various strategies can be used
- Ugly graphics
- Hard to navigate the UI in my opinion