In the chart below are the loan originations for April. I do monitor development of p2p lending figures for many markets. Since I already have most of the data on file I can publish statistics on the monthly loan originations for selected p2p lending services.
Table: P2P Lending Volumes in April 2015. Source: own research Note that volumes have been converted from local currency to Euro for the sake of comparison. Some figures are estimates/approximations. *Prosper and Lending Club no longer publish origination data for the most recent month
In October 2012 I started p2p lending at Bondora. Since then I periodically wrote on my experiences – you can read my last review here. Since the start I did deposit 14,000 Euro (approx. 15,600 US$). My portfolio is very diversified. Most loan parts I hold are for loan terms between 36 and 60 months. Together the loans add up to 20,616 Euro outstanding principal. Loans in the value of 2,397 Euro are overdue, meaning they (partly) missed one or two repayments. 2,623 Euro principal is stuck in loans that are more than 60 days late. I already received 13,261 Euro in repaid principal back – this figures includes loans Bondora cancelled before payout. I reinvested all repayments.
Chart 1: Screenshot of loan status
At the moment I have 0 Euro in bids in open market listings and 741 Euro cash available, which is rather high but it will take only 2 to 3 loans that match my investment criteria to allocate the money.
Chart 2: Screenshot of account balance
Return on Invest
Currently Isepankur shows my ROI to be 27.22%. In my own calculations, using XIRR in Excel, assuming that 30% of my 60+days overdue and 15% of my overdue loans will not be recovered, my ROI calculations result in 19.6%.Continue reading →
In March Lendinvest reported a surge in loan originations and had an exceptional month with more volume originated than Ratesetter or Funding Circle. I do monitor development of p2p lending figures for many markets. Since I already have most of the data on file I can publish statistics on the monthly loan originations for selected p2p lending services.
Table: P2P Lending Volumes in March 2015. Source: own research Note that volumes have been converted from local currency to Euro for the sake of comparison. Some figures are estimates/approximations. *Prosper and Lending Club no longer publish origination data for the most recent month
Today Latvian Mintos expanded by now offering loans to Estonian borrowers on the p2p lending marketplace. These loans are secured with a car as collateral. Today 15 loans were posted on the platform. Typical (nominal) interest rates for these loans seem to be between 11 and 13%. LTVs are as of today in a wide range from 26% to 90%.
CEO MÄrtiņš Å ulte told P2P-Banking.com: ‘From today we also offer investors opportunity to invest in loans secured by vehicle. We provide these loans in cooperation with Mogo (http://mogofinance.com), the market leader in car loans with operations in Latvia, Lithuania, Estonia, and Georgia. … as part of our international expansion we have set up a company in Estonia and are working on entering Lithuania and Poland to boost our loan origination capacity‘. Continue reading →
As February was a shorter month, loan originations fell compared to January with some exceptions. Ratesetter and Funding Circle are in a neck-and-neck race for largest volume figure this month. Prosper and Lending Club no longer publish origination data for the most recent month. I added two more services. I do monitor development of p2p lending figures for many markets. Since I already have most of the data on file I can publish statistics on the monthly loan originations for selected p2p lending services.
Table: P2P Lending Volumes in February 2015. Source: own research Note that volumes have been converted from local currency to Euro for the sake of comparison. Some figures are estimates/approximations.
P2P lending service Bondora, headquartered in Tallinn, announced that they raised 5M US$ Series A round led by Valinor Management to fuel further expansion plans for cross-border lending in Europe. Richard Fay and Ragnar Meitern also invested. Bondora was the first p2p lending service doing cross-border lending for retail investors. Bondora is currently facilitating loans to borrowers in Estonia, Spain, Finland and Slovakia from investors in all European countries. Bondora states that investments on the marketplace have consistently yielded premium returns to investors while simultaneously delivering competitive rates to borrowers through efficiency and lower interest rate spread.
Uniting European markets under the roof of a single platform creates a huge opportunity given the size of the population in the continent and the volume of outstanding debt. Thus, Eurozone countries alone account for 340 million people and EUR 1.1 trillion in outstanding consumer credit debt, a market equivalent to US. Lending to borrowers in markets that are independently relatively small (even Germany, the largest economy in Europe is only approximately twice the size of California in terms of GDP) allows earning premium returns due to lack of competition among traditional lenders.
Pärtel Tomberg, CEO and co-founder of Bondora, said he hoped the cash infusion from Valinor Management, the hedge fund run by David Gallo, will allow his company to build the more complex infrastructure needed to make more cross-border loans. ‘The goal is really to become a global market,’ Pärtel Tomberg said in an interview. ‘There are no precedents in the world on many of the things we want to do.’
The company also wants to attract institutional lenders from the US.
A possible mid-term competitor might be Lending Club. But Lending Club said in the investor conference call on Tuesday that they will focus on the US market and will not use the capital raised in their December IPO on international expansion plans in the near future. Renauld Laplanche is however monitoring international developments in the market: ‘We’ll see what model is really the winning model in any particular geography.’ Continue reading →
