As the global economy has slowed over the past several months, Bondora has planned on lower originations to maintain stability through this crisis period, and a positive long-term growth outlook for the future. As a result, originations came in lower in March than the previous month, totaling €9,702,500.
Spanish originations least affected
Originations in Spain were least affected on the month, with originations totaling €1,656,664, down by 15.4%. At the same time, Spain also saw its interest rate increase, up to 48.6% in March. While total originations fell in Estonia, the country took a larger share of all Bondora originations, garnering 46.2% or all originations compared to 44.1% last month.
Spanish originations were more evenly distributed in March than previous months. While F rated loans in the country still garnered the most originations, C, D, and HR rated loans held a similar share of originations in the country. Finnish E rated loans remained the most originated category, totaling €3,109,542 in March, equating to 32.1% of all Bondora originations.
Average loan amounts decrease across the board
Finnish loan amounts decreased the least, down by 2.9% to €2,960. On the flipside, Spanish loan averages fell the most, down to €1,687, a decline of 24.9% compared to a month ago.
Loan Duration
Estonian loans averaged 48-months in duration, down by 2-months compared to February. Spanish originations held steady at an average of 52-months, as did Finnish originations, which remained at an average of 48-months for the third consecutive month.
60-month loans in Spain jumped higher to 75.5% of all loans in the country, up from 68.8% last month. Estonia had more 36-month originations, totaling 38.5% of loans in the country. The distribution of Finnish loans remained relatively consistent compared to last month.
Average ages and incomes mixed
Estonian borrowers trended downward in age, averaging 38-years old, while Finnish borrowers were, on average, older than last month, at 47-years old. Spanish borrowers remained the same at an average of 42-years old.
Incomes for Estonian borrowers rose for the second consecutive month, up by 6.1% to €1,382. Spanish incomes also rose, up by 2.4% to €1,654. However, Finnish borrowers made less money this month than in previous months, averaging €2,545, a decline of 3.7% from February.
Education levels remain the same
In Spain, more borrowers had a high school education (44.7%) in March than last month (41.4%). Otherwise, there was not much change in the education level of Bondora borrowers.
Employment
In a trend reversal, less Bondora borrowers (37.5%) were employed for more than five years than last month (41.2%). Still, 63.0% of all borrowers have been employed for up to five years or more than 5 years.
Home Ownership Status
The only category to rise in Estonia were borrowers with a mortgage, accounting for 7.5% of borrowers in the country. Significantly fewer borrowers in Finland were tenants in March (40.9%) than in February (45.9%).
Verification status remains high
The verification status of Estonian borrowers jumped higher over the month, up to 60.0% from 55.4% last month. Verification for Finnish borrowers remained above 98%, while verification of Spanish borrowers was even higher, at 99.6%.
Maintaining stability
During these times of economic uncertainty, Bondora recognizes the need to maintain financial stability. For this reason, Bondora has slowed its originations to a sustainable level, while still providing investors with solid p2p loan options for their portfolio.
Learn more about Bondora investment products here.
*As with any investment, your capital is at risk. Investments made through Bondora are not guaranteed; therefore any assets allocated to the Go & Grow account are not guaranteed by any state fund or otherwise secured and it may not be possible to liquidate assets or withdraw money immediately. The yield is up to 6.75% p.a., but please note that the yield achieved in past periods does not guarantee the rate of return in the future. Before deciding to invest, please review our risk statement or consult with a financial advisor if necessary.
