October 25, 2021,

Portfolio Performance Maintaining Course Despite Slight Decline

Bondora Go & Grow

Editorial team

After a positive jump in the Bondora portfolio in August, originations had slightly lower return rates as a whole in September. With that being said, Bondora originations still show good returns when compared to their target rates. Read more below:

*Bondora had a steady portfolio performance in September.*

Key statistics

There was a 0.2% decline in Bondora returns for 2021 originations
Q3 2021 originations returned 9.5%
More Estonian AA and F-rated loans were originated in September than in August
Estonian originations saw better than expected returns for low rating categories and worse than expected returns for higher rating categories

Yearly performance

A 15.4% interest rate on 2021 originations was down 0.2% compared to August. But despite this slight decline, it still holds strong above the target rate of 9.5%. Estonian originations in 2021 showed strength on the month, growing by 0.2% to 18.2%. Finnish originations had the opposite trend, declining by 0.2% to 7.2%.

2020 originations were also on the growth path, climbing by 0.2% to 16.7%. This growth was led by Estonian originations, which had a return rate of 21.0% compared to 20.6% last month.

Quarterly Performance

September marked the first reported return rates for 2021 Q3 originations, coming in at 9.5% compared to their target rate of 8.9%. Additionally, the previous five quarters had higher return rates than last month, with 2020 Q4 originations returning quite well at 21.3%. This is a whopping 10.2% higher than their target rate.

Finland

For the second quarter in a row, only D-rated loans were originated in the Finnish market. However, Q3 had a relatively low return rate of 4.6%, which is below the target of 6.8%. On the flipside, 2021 Q2 originations had a better return rate of 7.7% compared to 7.0% in August.

Estonia

In the most recent quarter, more AA and F-rated loans were originated by Bondora for Estonian borrowers. Overall, for 2021 Q3, lower-rated originations performed better than higher-rated originations with A, AA, and B-rated originations returning below their target rates. In contrast, C, D, E, and F-rated originations came in above their target rates.

One positive thing to note for 2021 Q2 originations was AA-rated originations. After returning ‑3.1% last month, this category jumped into a positive return rate of 0.9% in September. In fact, all 2021 Q2 rating categories had higher return rates than last month.

*Estonia portfolio performance – September 2021*

Spain

Both C and HR-rated Spanish originations for 2021 Q3 had 0% return rates. Meanwhile, all 2021 Q1 originations (the most recent quarter originations) were lower than in August. Still, HR-rated originations in the quarter remained above their target rate at 19.9%.

Conclusion

Despite having slightly lower return rates in September, Bondora originations are overall still in good standing compared to their target rates. As a whole, Q3 2021 originations had a 9.5% return rate, which is 0.6% above the target. Estonian originations still make up the bulk of the portfolio.

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.

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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.

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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.