How does that work
Bondora was one of the first peer to peer lending platforms to succeed and for the first few years were unbeatable: high interests and great reliability, they were also the first to have a secondary market, but competitors came out with buyback and Bondora left behind, until when they proposed new go&grow product that, lowering interest to 6.75% with daily pay (that reahes almost a 7% per year counting composite interest). Starting that day I moved my money back in.
On Bondora There are various possibilities of automatic purchase, some pre-configured and others to be configured manually.
Bondora makes available a secondary market, once the flagship of the platform.
Loans on Bondora do not provide a repurchase guarantee (or buyback).
What I Like
- Great transparency on applicants and the process of debt recovery
- Have public APIs so you can write some code to buy and sell automatically
- You can also invest large sums because there is a great deal of availability
- Provides virtually all historical platform data to investigate the risk of new investments
What I don’t like
- Missing buyback (mitigated with the introduction of go&grow)
- Secondary market is very competitive and full of bots
- High default risk (solvable usgin go&grow)
Conclusions (my opinion)
Bondora was one of the first P2P lending sites and in the first 2 years I have obtained, with some risk, an interest of 35% that in the current state of things is quite impossible. The current yields in fact are around 1% and without any guarantee of buyback. The addition of the go&grow program convinced me to put fresh capital on this platform.
That said I would recommend using manual loan selection only to experienced investors who have enough time to get the data available and to evaluate the credits individually. Only with these assumptions you will be able to obtain better earning compared to other platforms, otherwise it’s better to stick with go&grow and get a 6.75% with daily payments that, considering composite interest becomes almost a 7%.