Bondora investors seek strong returns and managed risk. Our color-coded loan statuses make this task easier for our users. This is a quick, graphical reference illustrating the payment behavior of the borrower. In this article we’ll provide detail on what each color represents.
Current – Green
Any loan with a green circle is being paid on time, in the proper amounts, according to the loan schedule. These loans carry no delinquencies.
Overdue – Orange
This represents an overdue loan. This color is assigned on the day following a missed payment date. Once two scheduled payments lapse without any activity from the borrower, the next stage begins. This next stage is a “Cure Period.” During this 14-day period, Bondora notifies the client that a default is pending unless they begin to make repayments giving the borrowers one last chance to avoid a bad mark on their credit rating.
There are some nuanced exceptions to consider:
- In order for the loan to become defaulted, the debt amount has to be larger than the sum of the two scheduled payment amounts. This means that when borrower has made a partial payment in the meanwhile, the overdue period will be extended.
- If a borrower has made only one payment in the current schedule, the minimum debt for the loan to default is one monthly payment amount.
- Finally, defaulting occurs in one month if a debt occurs with the last scheduled payment.
60+ days overdue – Red
A loan receives a red status once the Cure Period has passed. This status means that the loan is two scheduled payments overdue and the borrower has taken no steps to avoid a default during the 14-day Cure Period. At this stage we initiate the collection and recovery process.
Repaid – Grey
Loans with a grey status have been repaid.
Released – Blue
Blue color represents « released » loans. These loans were originally part of an old funding process (from 2015) in which loans could receive funding before the loan moderation process or before receiving a completed, signed contract. Funds were eventually returned (released) to the investor if the loan was ultimately rejected or, if the contract remained without a signature.
