⭕️The Bondora Review 2020 after 4 years + 13% [video-setup]

Bondora review revenueland

When I found Bondora I felt it could suit my needs

BUT

▶︎ Some Bondora reviews were just bad

What to do?

I tried it myself

After 4 years I am happy and profitable, read why…

I’ve just learned from others’ mistakes

Let me review Bondora..

“I want to own a bank”

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 untimely investments, the untranslatable accounting and, most importantly, the interests we pay on loans.

On a very common 100'000€ mortgage on a house, after 30 years the bank collects, at your expense, almost 100'000€ of interest! Click To Tweet

Have you ever wondered if YOU should maybe be the bank?

Maybe you did, but it wasn’t possible before. But now (somehow) you can!

Keep reading the Bondora review and decide if to borrow money to earn more money is a good idea or not.

Visit Bondora by yourself

What is Bondora?

What is Bondora P2P?

Bondora was founded in 2009. It is a “non-bank digital consumer loan provider”. Loans are offered in Finland, Estonia and Spain through a fully automated process. Loans offered are unsecured with durations up to 60 months. Investors come from 60 different countries.

Bondora is legally licensed to operate in Estonia by the Estonian Financial Supervision Authority (FSA). The FSA is the main regulating body in Estonia.

Bondora funded 370 Million euros in loans since 2009.

This data make Bondora one of the oldest and biggest P2P lending operators in Europe.

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

I am an ordinary Bondora user, and here is my experience Click To Tweet

Bondora investor return chart Bondora investors
30% of Bondora investors have returns over 15% (Bondora website) Compare your returns with others
Bondora - Leading European Peer-To-Peer Lending Platform

Bondora should not be confused with Bondara that is a popular UK’s adult retailer specialized in sex toys and bondage.


Here is not only my review on Bondora,

this is my direct experience

I will only tell what I do. I don’t recommend investments, but I can recommend you only to read reviews written by real investors.

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.

I haven’t paid any commission, either for depositing money nor for investing it.   Bondora signup and use are also free.

Transferring money and interests accrued into my bank account is free, too.

Bondora 2020 update:

Bondora also allows to register free and instantly by using our Google and Facebook accounts.

Visit bondora

Where does Bondora keep my money?

The money I transfer is kept by SEB Bank, a Scandinavian bank with a 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 directly affected.

How works Bondora settings strategy
Bondora works like this: Investors can lend money to borrowers and both can benefit

What does Bondora do?

Bondora, like other P2Ps,  groups together and manages a large series of loans granted to citizens of some European countries (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 bit of the risk that lending involves, and of course, the interests.

Bondora also deals with recovering 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 Click To Tweet

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!


❌ Bondora default

Bondora default

If Bondora should collapse one day what will happen to my lended money?

I will answer with facts, not opinions.

Bondora offers “direct loans”.

When I invest in direct loans I mainly need to worry about the borrower, not about the middleman that is represented by Bondora in this case.

When I use the Go & Grow instead I am mainly investing in Bondora itself, since the exact composition of the portfolio is not disclosed.

As you can see there is not a better option for all. Borrowers can keep paying regularly or not and Bondora may default or not.

I prefer to invest in direct loans since I can spread the risk among thousand of borrowers. Even if some of them will stop paying I don’t need to worry much.

I also invest in some Go & Grow because Bondora is a very old and established company.

Here is a recent video where the most popular answers about Bondora’s situation are answered by the CEO Partel Tomberg:

LIVE Ask Me Anything with Bondora CEO, Pärtel Tomberg (with German subtitles)

What about Mintos loans though…

I know, now you want to know the difference between Bondora and Mintos in terms of safety.

It is totally different.

Mintos doesn’t originate loans as Bondora does. Most loans on Mintos are also direct, not all.


🛠 How to invest with Bondora?

There are three ways available to use Bondora:

 

  • Portfolio Manager (basic and fast setup to avoid)
  • Portfolio Pro (fine-tune on credit scoring and duration)
  • Go & Grow auto-invest 6,75% (hands-free one click investing)

Let’s see how it works!

This is how I have invested with Bondora successfully for 4 years now

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

To invest with bondora I had to follow 6 steps:

  1. Visit the signup page and register (Google/Facebook are allowed)
  2. Load funds using a credit card or a bank transfer
  3. Choosing one of the three investing systems (Go & grow is the easiest)
  4. Activate one or more investing systems
  5. After 2 weeks make sure no money is left uninvested
  6. Monitor the platform once every month or two

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 this in a new browser window if you wish, but keep reading).

 How to transfer funds on Bondora easily
I had different choices to deposit my capital on Bondora. Credit card was an option.

How I loaded my funds on Bondora

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

Well, not ALL the amount straight away. I wasn’t brave enough at that time.

I’ve picked the option of depositing some cash by Visa (also Mastercard is available now).

Go to Bondora to see how it works

How to transfer money and what to expect

Here is exactly what I did next to speed up my investment in loans

Supposing that a credit card has a limit and I want to invest a consistent amount to get a relevant additional income, I will consider making a SEPA bank transfer instead. And this is exactly what I did after few days of investing by credit card and after my very first test was completed.

Honestly? It wasn’t an easy step, because Bondora was rather unknown in my country.

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.

Should I invest 50’000€ at the same rate I would be able to make approximately 6000€ yearly, which is a respectable additional flow of income in my opinion.

Once again, it is important to avoid high risk loans to achieve it safely.

 

15% of Bondora investors earn more then 15% or even 20% yearly (Bondora data 2019). 

I am fine to settle for a little less and I’m very happy with my conservative  settings

 

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 days before depositing my money there, but finally I did it. It was some years ago. No regrets, so far.

95.000 small/large investors all around the world use Bondora now to obtain returns that don’t exist anywhere else anymore with the same amount of risk. I keep an eye open, but at the moment, I believe there’s no reason to worry.

Some smaller and exotic peer to peer lending companies are out of my radar for safety reasons.

Follow Revenue.Land and you’ll get all my updates real time.

How I started with Bondora

step-by-step process

As I said, there are 3 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 most automatic way is the Go & Grow% 6,75% capped interest

Here I am going to show you my “Portfolio Manager” setup

This is to start as soon as possible and to start enjoying the paid interests.

An easier alternative is the Bondora Go & Grow setup.

To know more about the third option, the advanced “portfolio pro” read this.

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.

MY BONDORA SETUP (PORTFOLIO MANAGER)
I opt for a “ultra-conservative” strategy, no doubts. The main “trick” I use here is to set the “years of investment” to 1 year, even if this is not true. By doing so I will reduce even more the HR loans that I don’t want.

 

What to remember:

  1. I prefer the “ultra-conservative” setup
  2. I remember to set the Years to “1”

 

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 only took me few minutes!

 

Obviously the higher the return, the likelier the chance of absorbing loans given to less trustable people.

Why do I believe is wise to “stay” at the left of the range? Just to balance risk and profit wisely. Doing so, I am telling the platform to buy for me fractions of “not too risky loans”.

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 system ability to recover the credit, as they’re high-risk loans, often granted in Finland and Spain.

Some of the high risk/yield loans are paid with delay, some can even default.

The process to recover defaulted loans can be slow. On the other hand, 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 bring losses and can delay a lot the time I need to get back my investment.

I don’t want it.

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 tiny part of 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 for a test.

 

🎥 Bondora video setup

In this very short video I show how to setup Bondora in a very simple way.

Bondora: how to use Portfolio Manager in 70 sec. 🏁 (safer and faster + review)

Another way to make a proper setup is the Portfolio Pro. The total automation is given by the Go & Grow.

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 2000€ 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 three portfolio risk/return compound interest investing
I calculated that if Bondora keeps the actual returns for many years it can generate an amazing compound interest effect

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 average is between 9% and 15% with my settings.

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. Of course risk/reward ratio is different, so I allocated a part of my capital here.


Bondora mistakes 🏴

Bondora Mistakes

Temptation if beautiful.

The truth: Bondora extremely high interest rate on some loan classes are really tempting (>40%).

Misguided investors before me didn’t resist and now complain about high-risk loans that are late.

My path:

  1. I’ve studied their portfolio
  2. Analyzed their complains
  3. Crossed data with statistics
  4. Came out with the easy strategy I’ve shown above (alternative to the easy Go & Grow system)

This is an example of a hazardous (portfolio manager) setup for me:

How NOT to use Bondora

 


And this is an example of a wrong setup (portfolio pro) for me:

 How NOT to use Bondora! ⬆ Setting Bondora portfolio to high risk
This is the wrong way to use Bondora portfolio pro. Setting up a 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!

Keep reading…

 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.


 

Bondora Go & Grow Automation, how to use

 

It is very easy to activate the Go & Grow.

The 6,75% capped interest starts to flow immediately after setup (many people don’t believe it).

How to start Go & Grow Bondora

This is the Go & Grow step by step:

  1. I register to Bondora website
  2. I deposit funds
  3. I head to Go & Grow Page
  4. I am given 6 options (choose one, it makes no difference)
  5. I setup the plan (3 questions in total)
  6. Click on “create my go & grow account”

 

No additional action is required

I will immediately start to compound the 6,75%

Here is a deep explanation of the Go & Grow.

 

Conclusions

 

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 transfer)

  • I limit the risks by following common sense

  • I activate Portfolio Manager (or PRO)

  • I cash in or reinvest the returns

 

Micro-bonus: When I sign up I can also get a small welcome bonus as soon as I load 10€.

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. What I'am sure about is that to know -how to use it- is making a difference in my results. So far, I'm happy with it. Click To Tweet

 

If you have found useful this Bondora review, please say thanks by sharing this article with your followers. I’m sure they’d be happy to read it.

 

This blog is purely for informational and educational uses (disclaimer). I don’t work for Bondora or any other P2P and I don’t advise anyone to use any of this tools or to make investments of any kind.

How do you setup your Bondora?
Do you avoid the lowest rated loans?
Do you prefer the go & grow?
Ask a question or bring your experience by commenting!
Visit Bondora and judge by yourself
[Total: 5   Average: 3.4/5]

28 thoughts on “⭕️The Bondora Review 2020 after 4 years + 13% [video-setup]

  1. Andy Murray says:

    I shared this post to thank you for writing (as you suggested to do).
    I’ve also followed the steps in your video. If I got it right, the key is to set in the “year of investment” to just 1 year, otherwise I would get too many HR loans. I love this tricks!!

    • True from Revenue Land says:

      That’s true Andy. Portfolio Manager is the easiest way to start with Bondora and with that simple setup I can reduce the number of high risk loans if I want to 📌
      Thanks x sharing and commenting, these are the best ways to say “thank you for writing this post”.

  2. Pingback: Bondora Go & Grow 6,75%* 🌱 risk free? – Financially Ninja

  3. Massive Jason says:

    I’ve sold some of my HR Bondora loans at discount and I’ve switched it to go&grow before finding your blog. Is it still valid what you wrote here?

  4. Juanjo says:

    I’ve just copied your setup. portfolio manager/ ultra conservative / 5500€/ monthly contribution 0/ years of investment 1/ accept condition/ start
    Is it correct?

  5. please says:

    Please write the details on every rating class (if you have it) so everyone can choose accordingly to the personal risk appetite. I’d go for some D rated loans if I knew more about their performance (all I see is in the secondary market). There is nothing about it in your monthly newsletter so far. Like you I build a portfolio pro for every rating, this gives me control and I thank you for this tip

    • True from Revenue Land says:

      Great, I’ll write about this, I’m collecting lots of data. It seems you know what you want and that sound good. Building a Portfolio Pro for every rating and duration is the best thing for large investors. It doesn’t make much sense for few hundreds euros (IMHO).

  6. Mr Desert says:

    This looks complicated. Go e grow is easier and I am one of the first investors in the United Arab Emirates

  7. Luis Oliveira says:

    Hello, can you share the percentage of overdue principal plus late interest and charges relatively of your total account value?

  8. Carol wilson says:

    Are you interested in trading?
    $500 gives $6,509 in 7 days.
    $5000 gives $160,000 in 7 days.
    100% payout guaranteed.

  9. Jay says:

    Hi there, just curious about the investment opportunities. What if I would put down 500k, of which I am thinking about – and for instance will get a 11.5% interest return per year. That would make after 2 years 621k. However, after two years, I still want to keep most profits in, but would also love to take 40% of the profits out. So still compounding, but just making sure that 60% stays reinvested.

    What should I do then for the system not to reinvest the amounts after two years? Because if everything goes on auto-pilot, where can I interfere with the auto-reinvesting?

    Your article seems solid! This is the only part I am a little hesitant about before starting to make a move with Bondora.

    • Sal from Revenue Land says:

      I answer as a Do-it-Yourself investor, not as a financial advisor.
      I use Bondora and P2P lending for long-term investment.

      If I had a time horizon like yours I would try to settle for a lower return in exchange for more flexibility.

      Maybe I would try to distribute a 30% on Bondora go & grow 6.75% and the remaining 70% in loans (mostly Estonian) with AA-A-B ratings and a few C.

      When I activate the Portfolio Pro I am free to stop one (or all) of the portfolios in it at any time and immediately with 1 click.
      The point is that the loans I have acquired should be kept until maturity (normally 36 months).

      Alternatively, if I am in a hurry to liquidate them before maturity, I can sell them on the secondary market.

      With such a setup I should be able to get approximately 9% per year without maintenance.
      Of course I find it very wise to distribute my portfolio also on other platforms like Mintos and Estateguru because the risks of when I invest in loans are not negligible.

  10. Robin says:

    I’ve only used their Go & Grow feature as my “backup” money is in Bondora, it’s a good way for me to earn an extra 6.75% interest on the money I may need in the future. For example, my car broke down and I had to get it repaired, cost me $3,000 which I withdraw from Bondora Go & Grow, these $3,000 been generating interest for 6 months. Sure it’s just $100~ but that’s free money. My Go & Grow portfolio is around $15,000 so it’s some interest at least, around $85 a month.

    I might try out their other features after this review as well, thank you.

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