As you might know, I diversified my Peer-to-Peer lending investments over several platforms, mainly across Europe at the moment. Between all those platforms, the first one I ever invested on is the Bondora platform, which is still the biggest position in my P2P lending portfolio.
In this article, I will review the Bondora platform, on which I invested about one year ago. I will tell you more about the platform, what is the current state of the available loans there, and finally, I will tell you about my portfolio on this platform & how it is performing after one year of investing.
The Bondora Platform
Bondora is a P2P lending platform based in Estonia, and the biggest in the world using the Euro as the main currency. According to their website, they processed more than 1 billion Euros of loans since they opened in 2009. The platform is accessible to most investors based in Europe, and they are currently serving loans in Estonia, Finland and Spain.
Like many other platforms in Europe, they have no fees for investors on the primary market. The only fees you would have to pay is when you invest in the secondary market (buying shares in loans other people already invested in), but that’s not something I did at the moment.
Interface & Available Loans
Let me now tell me a bit more about the interface of the platform, and also about what kind of loans are available at the moment. Since I invested in my very first P2P lending loan on this platform a bit more than one year ago, the interface changed a lot.
At the heart of the interface is the dashboard, on which you can also find the portfolio manager:
Bondora has the easiest portfolio manager interface I know, as they have three clear choices of the portfolio manager. It is a pity that they removed their ‘custom’ portfolio manager in 2015, which allowed to define your own filters for your investments. However, as I do not want to manage my investments day after day anymore, I am now using their portfolio manager in the most conservative mode, which is giving me good results so far (more on that later).
They also have a very good interface for the filters, which changed a lot since I first invested there. You can basically filter the loans on every possible data available about them:
This allows to quickly browse through available loans in case you are investing manually. At the time I wrote this review, there were about 100 loans available on the platform, including several loans in the best ratings available on the platform.
Current Portfolio After One Year on Bondora
Let’s now talk about my own portfolio there, and the performances after one year of investing. This is a screenshot from my dashboard:
As you can see, the 14.85% return that I had on the money invested is in line with what is advertised by their “conservative” portfolio manager option. However, I didn't have a lot of defaults so far, so I expect this rate to fall in the future to go in the 11-12% range, which is still excellent for this completely passive investment.
We can also have a look at the cash flow, which is nearly constantly growing since I first opened the account in February 2015:
Update August 2018: As promised, I wanted to update this review based on my results I got from the beginning till now. The major difference compared to what I wrote earlier is that I switched to the portfolio manager to portfolio pro, which is their new feature where you can set exactly in which loans you want to invest in, for example, based on the ratings of the loans. As the number of defaults was rising on the platform, I decided to switch to a very conservative approach by only investing in the best loans (which is my approach now on all platforms). Therefore, my annual yields stabilized at around 11%, which is what I predicted when I first wrote this review, so it's all good at the end. Let's have a look at the overview of my investments on the platform:
Finally, here is the evolution of my monthly income on Bondora over time:
On this graph, you can definitely see what I did on the platform: injecting a lot of money till the middle of 2016, before using the passive income generated by Bondora to invest and other platforms and diversify & grow my portfolio. This explains the big surge of income in 2016, followed by a more stable monthly income till now. Note that I also activated portfolio pro after 2016, explaining why the monthly income was going down a bit.
To sum up, I would say I am really pleased by the Bondora platform. They have a huge amount of loans available, which is great if you want to invest significant amounts of money on the platform. They also have a nice & clean interface compared to other platforms. When I first wrote this review, I said I wanted to see a more customizable portfolio manager, which is exactly what they did with portfolio pro. It proves they definitely constantly improve and listen to their users, which is a very good sign and I will definitely invest more on Bondora in the future.
Are you also investing on Bondora? What are your current results? Don’t hesitate to share below!