10 marraskuun, 2020,

Estonian returns grow in October

Bondora Go & Grow

Editorial team

Table of contents

Led by strong returns from Estonian originations, Bondora saw another month of stability, proving the strength of our loan originations. The first figures for Q2 2020 were solid, and previous numbers maintained similar levels to last month.

As always, country-specific performance charts are broken down by the number of loan issuances over the given period, with Orange representing < 50 loans, Blue 51-200, and White > 200.

Yearly Performance

Even amidst the global economic crisis caused by the coronavirus, Bondora originations for both 2020 and 2019 are still above their target rates. Returns on Estonian originations rose 1% to 19.9% on the month. This helped to lift the current year’s total return rate to 17.5% from 17.1% in September. The ongoing temporary pause on Spanish and Finnish originations expectedly caused returns in those two countries to fall, albeit only slightly from a month ago.

Quarterly Performance

The quarterly return for Q2 2020 started off with a bang, with the first reported numbers coming in at 25.5% compared to a 12.6% target rate. The previous two quarters were slightly down, which continues the trend from previous months. Returns for Q1 came in at 16.7%, which is 3.9% ahead of their target, and Q4 2019 returns were in-line with the target rate of 12.3%.

Finland

As previously mentioned, there were no Finnish loan originations over the second quarter. Quarterly rates remained relatively stable in Finland, as return rates decreased by an expected amount, with all rates for the previous three quarters coming in within 1% of their returns last month. Meanwhile, E rated loans continue to be the best performers, with returns of 12.93% and 10.15% for the Q1 of 2020 and Q4 2019 respectively.

Estonia

Estonian originations shifted away from A and AA rated loans in October, and instead focused on C, D, and E rated loans. Additionally, there were no HR rated loans originated over the course of the month. F rated loans performed the best in Q2, coming in at 31.97%, followed closely by E rated loans at 30.53%. All but AA rated loans held adobe their target rate for Q1, and 6 out of the 8 rating categories for Q4 2019 are also higher than their targets.

Spain

C and D rated Spanish loans fell below their target rates in October. Yet, E, F, and HR originations are still well above their targets, with HR rated loans performing the best at 31.21%. In fact, HR rated loans are above their target rates for each quarter dating back to Q3 2018.

Key takeaways:

2019 and 2020 returns are still well above their target rates.
The yearly return for Estonian originations grew a full 1% to 19.9%.
The first numbers for Q2 2020 came in strong, exceeding their target by 12.9%.
Estonian rates continue to be mostly above their targets dating back to Q4 2019.
HR originations in Spain continue to exceed expectations dating back more than two years.

Bondora Go & Grow

Editorial team

At Go & Grow, our Editorial Team combines years of fintech experience with a passion for financial education. We’re here to share trustworthy insights, platform updates, and easy-to-understand investment tips for everyone.

Share this article

Frequently Asked Questions

How is Bondora regulated?
Bondora Capital’s business model is unique, with no direct precedents in the market. As such, there is currently no specific regulatory license that directly applies to our Go & Grow product. However, we work proactively with regulators across the EU to ensure full compliance with all applicable local laws and regulatory frameworks.

To support this, we regularly publish financial updates, audited annual reports, and disclosures, reinforcing our commitment to transparency and investor trust.

At the same time, Bondora Capital is subject to all relevant general regulations, including (but not limited to) the Estonian Consumer Protection Act, the Law of Obligations Act, the Commercial Code, the Accounting Act, the Competition Act, and the General Data Protection Regulation (GDPR).

Additionally, Bondora AS, a member of the Bondora Group, operates as a Licensed Credit Provider under the supervision of the Estonian Financial Supervision and Resolution Authority. In Finland, we operate through a licensed branch regulated by the Finnish Financial Supervisory Authority. We also hold an operating license in Latvia, supervised by Latvijas Banka, and have recently received regulatory approvals to operate in both Denmark and Lithuania.
Are Bondora AS's loans secured?
Bondora issues unsecured loans, meaning credit customers are not required to provide collateral. This approach allows us to offer a faster, simpler, and more accessible lending experience.

Risk is mitigated through multiple layers of protection. Our underwriting process is powered by predictive, data-driven models, trained on deep datasets collected over 17 years. Each borrower is carefully evaluated using a wide range of creditworthiness indicators before any loan is issued.

With Go & Grow, your investment is automatically diversified across hundreds of thousands of loans in multiple countries. This significantly reduces individual borrower risk and adds a layer of protection against regional or geopolitical events.

In the rare event of non-payment, we follow a structured recovery process, working with professional debt collection agencies and, when needed, escalating cases through local legal channels to pursue repayment.
What happens when a borrower doesn't repay?
At Bondora, we do a lot to prevent repayment issues before they happen. Our advanced data models carefully assess each borrower’s creditworthiness, using historical data and predictive analytics to minimize the likelihood of default from the start.

If a payment is delayed, we act quickly but thoughtfully. From the first day of the delay, we reach out to the customer via email, SMS, and automated calls to remind them of their delayed payment and offer flexible options to get back on track. The aim is to find a solution together, whether that means a new payment date or a short-term adjustment.

If the situation doesn’t resolve, we may involve our internal teams or trusted partners to continue the dialogue and explore further options. In some cases, if communication is unsuccessful, the matter may be escalated to the local legal system in line with standard procedures. Legal steps are always a last resort, and the goal is to find the best possible outcome for everyone involved.

Throughout this process, our focus remains on recovering outstanding amounts responsibly and respectfully while protecting investors’ interests.

Read more
What are temporary partial payouts?
Under normal conditions, your Go & Grow withdrawal is paid in full with a single transaction near-instantly. However, in rare and extraordinary circumstances, partial payouts may be activated temporarily. This means your withdrawal will be split into smaller, daily payments until the full amount has been delivered. Only one €1 withdrawal fee applies once you’ve received the full amount.

This protective feature was built into Go & Grow from the start to help maintain stability and safeguard investor returns, so you can stay on track and stay earning, even when the world feels uncertain.

In Bondora’s 17-year history, partial payouts have only been activated once.

While we aim to keep Go & Grow fully liquid, this feature ensures that when conditions require it, your investments remain protected and continue to work for you.
What happens to my investments if Bondora goes bankrupt?
Your money is protected. Even in the highly unlikely event that Bondora Capital becomes insolvent, your investments remain yours. Investors legally own the loan claims, not Bondora Capital.

This means Bondora’s financial situation does not affect the legal ownership of those claims—they continue to belong to the investors. The claims are not part of Bondora’s bankruptcy estate.

Risks related to Bondora as a company are separate from the risks associated with your investment portfolio. Simply put, if Bondora disappears, your investment doesn’t.