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From zero to Bondora! ⤴ Review + 13% and micro-bonus

How to use Bondora? How safe is it?

I am always looking for ways to build passive income. When I studied Bondora I felt it could suit my needs, but some reviews were bad. So I tryed it myself.

Now, after some years, I think that to create automatic income without having to study the financial markets, P2P lending and also Bondora can be good tools.

Bondora is a Peer to Peer Lending for those investing in Euros and looking for loans paying over 25%, but ⚠️ be careful!⚠️

Bondora. My opinion and my path from zero to Bondora.

Bondora. My opinion and my path from zero to Bondora.

Reading time: 3 min

How I went from “Zero to Bondora”:

  • Where does Bondora keep my money?

  • Who is Bondora for?

  • How NOT to invest with Bondora

  • Opinions on Bondora

  • The magic of compound interest

  • Swooping returns with Bondora

  • How to start with Bondora (Step-by-step guide)

  • Get to know Bondora (to create a monthly income in a relatively short time with a careful selection)

  • Is it safer to Transfer funds by credit card on Bondora

  • New users bonus 5€ (can buy 5 loans of 1€ each)

As a child, they teach you that the house always wins… and statistics confirm this.

As an adult, the house is represented by the banks and we have learned that these, indeed, always win. Then we get angry and we curse about the charges, the wrong investments, the untranslatable accounting and, most importantly, the interests we pay on loans.

On an extremely common 100000€ mortgage on a house, after 30 years the bank cashes in, at your expense, almost 100000€ of interests!

Have you ever wondered if YOU should maybe be the bank? Maybe you did, but it wasn’t possible before. But now you can!

Bondora is one of those platforms that allows me somehow to “act as a bank” by lending, more or less indirectly, money to private parties to receive interests on their debt.

I am an ordinary Bondora user, and here is my experience.

30% of Bondora investors have returns over 15% (Bondora website) Compare your returns with others.

30% of Bondora investors have returns over 15% (Bondora website) Compare your returns with others.

Here I won't talk much about opinions. Once decided Bondora fits my needs, I went straight to learn how to set it up in a convenient and productive way.

This is how I use Bondora in a way that won't make me worry much about it in the future

Bondora is available to European investors and offers fractions of loans granted in Spain, Finland, (Slovakia) and Estonia. It seems complicated, but the process is smooth.

I didn't pay any commission, either for depositing money nor for investing it.   Bondora signup and use are free. Transferring money and interests accrued into my bank account is free, too.

Where does Bondora keep my money?

The money I transfer is kept by SEB Bank, a Scandinavian bank with a much higher rating than many European banks. Bondora finances are separated from those of others investors, so, at least up to this point, if Bondora had to close, our money should not be affected.


Who is Bondora for?

Bondora, like other P2Ps,  groups together and manages a large series of loans granted to citizens of some European countries (often consumer loans). Then, it makes me take part in the loan in an almost virtual way, by allowing me to cash-in the interests that people pay to the financial Bondora that has granted the loans.

In doing so, it transfers to us a little bit of the risk that lending involves, and of course, the interests. Bondora also deals with recuperating the debts from slow payers so that I don’t have to take care of that.

Unfortunately, the impact of slow payers isn’t always very clear in the data it publishes, but it is certain that by selecting well, with such high returns, it is difficult to be completely wrong.

The potentially late loans are mostly gathered on the “high risk” ratings, while they are obviously less frequent in the higher ratings (more reliable borrowers).

The average person who complains about Bondora (there are a few on the web) is typically someone who looked for the maximum return in the past (see photo below) without worrying about the credit risk.

Instead, I have analysed the risk/return factor and I have made the following conclusions.

Before continuing, I now invite you to repay the effort and the research I have put in writing this article: just share this post! It costs you nothing, and it feels great for me! Thank you!

How NOT to invest with Bondora

Virtually, in a really short time, you can set up the system to start a considerable passive income.  You’ll notice that with very simple set-ups you can have 27 to 35% yearly returns. Fantastic, isn’t it? Not at all!

How NOT to use Bondora! ⬆  Setting Bondora portfolio to high risk may not bring to higher returns any soon.

How NOT to use Bondora! ⬆ Setting Bondora portfolio to high risk may not bring to higher returns any soon.

This is precisely where those with no experience and lots of greed, normally fall and risk losing money, too!

 These days, 30% is not a return that you can reach without exposing yourself to a high risk. I like to talk about investments here (a moderate to risky investment), not gambling or binary options.

I have learned from others’ mistakes.

This is why I felt the need of being careful and make more productive choices.

Let’s see how it works!

This is how I have invested with Bondora.

By following my super-simple set-up, I have been able to reduce most of the risks without excessively reducing the returns. 

I am an old Bondora investor, so I can “talk”.

Opinions on Bondora

Bondora rating on Trustpilot is good (for now, we keep a vigilant eye on it)

Bondora rating on Trustpilot is good (for now, we keep a vigilant eye on it)

Bondora good reviews and opiniond

The international reviews are good and it’s been working since 2009. Bondora works in 14 European languages (check if yours is available), serving 47’000 investors.

To sign up I’ve just used my email address, then I received an email and I filled in the rest. Also Facebook and Google sign-up are available (open in a new browser window if you wish, but keep reading).

How to transfer funds on Bondora easily

How to transfer funds on Bondora easily

Immediately after subscription I have deposited the amount of money that I wanted to invest on Bondora.

An option available to make a deposit is also by Visa or MasterCard card.

I guess Bondora is the only P2P to make visa deposit possible and I like it.

That’s exactly what I did to speed up the investment.

Supposing that a credit card has a limit, if you want to be serious about it, it is also possible to make a free SEPA transfer instead.

Just to get an idea, investing at 12% yearly interest rate on Bondora the amount of 10.000 euros may generate 1200€ per year approximately. Again, it is important to avoid high risk loans to achieve it.

The SEPA transfer is a transaction that is normally free of charge in Europe. Making a wire transfer abroad of a certain amount of money can be scary.

I hesitated a few weeks before depositing my money there.

Tens of thousands of small investors all around the world use P2P and Bondora to obtain returns that don’t exist anywhere else anymore with the same amount of risk. At the moment, there’s no reason to worry, follow Revenue.Land and you'll get all the updates.

The magic of compound interest

As soon as I’ve transferred the “loot” that I want to multiply, I’ve made some calculations. With a 10/15% interest, I’ll be able to double the invested amount of money in few years.

In the chart below, we see the effect of the combined interest, that is to say, how much the capital increases exponentially once I’ve started reinvesting what I’ve earned.

For example: if I invest 20.000€, after one year I will have at least 200€ more, rather effortlessly. If then I reinvest again (Bondora will do that for me) the initial sum plus what I have accrued, with some patience and monitoring, the result across the year will be exponential, as the chart shows.

Bondora is a long-term investment.

Bondora risk/return

Swooping returns with Bondora

For a number of reasons, the returns have been slowly decreasing over the past few years. Until a few years ago, an 18% “automatic” average with Bondora was no pipe dream. Now, the range of the interest paid is between 10% and 22%, as the photo below shows.

It is possible to predict that in the future I could have to deal with lower rates (but still really high and legal). Many of those who invested just 4 years ago say they have already doubled their sum. With “safer” traditional investments, I’d need decades to get a similar result. So I allocated a part of my capital here.

How I started with Bondora (Step-by-step process)

There are three ways to invest.

  • One is called “Portfolio Manager” and it’s the easiest and most direct way

  • Another way is called “Portfolio PRO” and it gives me more control

  • The last one is a system through API Bondora which is reserved for very advanced users

I’m going to talk about the first one only, the “Portfolio Manager”, useful to start as soon as possible and to start enjoying the paid interests.

Afterwards, I’ll analyse Portfolio PRO.

Let’s now go to the “Dashboard”, the splash screen.

Pressing "start" on the left bottom I will “Activate Portfolio Manager”.

Let’s set the "starting amount" and the "years of investment" and I will automatically see an estimated "expected return" in the green window on the right. On the right, I’ll also find the expected distribution by rating and by country.

If I wish to have more control on this elements I need to move to the "portfolio pro". This auto-investment is enough if I don't feel too confident at the beginning.

Bondora Portfolio Manager prediction. It says you might almost double your investment after 3 years auto investing your money but we think that this expectations might be a little optimistic in some cases

Bondora Portfolio Manager prediction. It says you might almost double your investment after 3 years auto investing your money but we think that this expectations might be a little optimistic in some cases

By moving the cursor right and left, the return I see changes happen live to my potential results.

Obviously the higher the return, the likelier the chance of absorbing loans given to less trustable people (and from whom the system will later have to recuperate the debt). 

It is wise to “stay” at the left of the range to balance risk and profit wisely. Doing so, I am telling the platform to buy for me fractions of "not too risky loans", whose reliability is thought to be reasonable by the responsible parties.

It can be very very tempting to move towards the right side of the range, towards the higher returns. But I won’t go there.

This is because down there I’ll bump into investment whose success is highly linked to the ability to recuperate the credit, as they’re high-risk loans, often granted in Spain. Some of the high risk/yield loans are paid with delay, some can even default.

The process to recover defaulted loans can be very slow. Bondora recently declared that the ability to recover money from who is not paying on time, has greatly improved in the past few years.

Opportunistic expositions offer really high returns but it can also delay a lot the time I need to get back my investment.

This is why I stick to the less risky ones and I resist temptation. 

I consider that nowadays a 10y German BUND (government bond), doesn’t pay much (less then 1% gross). Very safe, but not profitable these days. That's why I need to rebalance a bit my investments in a new way, and since I can get 8-14% revenue with P2P lending, that's going to be enough for me.

By clicking "Start" on the bottom right I agreed to terms and started to invest on Bondora.

Now I’ve set up the Portfolio Manager, and I can move to “investments” to see how my position evolves. 

I am done. I am investing with Bondora and it took me only few minutes!

To sum up, if I feel Bondora suits my needs:

  • I sign up (mail, Facebook, Google)

  • I safely transfer the sum I’m willing to invest in loans (Visa or bank)

  • I limit the risks by following my guidelines

  • I activate Portfolio Manager

  • I cash in or reinvest the returns

Micro-bonus: When I sign up I can get a welcome bonus.

If I want to go up a level and set up a “Portfolio Pro”, I have written something interesting.

Bondora statistically states that 98% of its users have realised positive returns. I am not sure if this is true. Knowing how to use it can make a difference of thousands of euros in my results. So far, I'm very happy with it.

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Ask a question or bring your experience by commenting!

This blog is purely for informational and educational uses (disclaimer).

NOTE: The indications contained in this analysis are to be considered mere information tools and do not intend to constitute in any way financial advice, solicitation to the public savings, suggest or promote any form of investment.