Bondora decreased the interest rate to 4% New investors on Bondora, who wish to earn interest with Go & Grow are only able to use the "Unlimited" product, which generates 4% per year. Existing investors will continue earning 6.75% with the traditional Go & Grow product.
P2P lending service Bondora* has announced that in future it will focus completely on its hands-off investing product Go&Grow. From February 27th, the products called Portfolio Pro and Portfolio Manager will be discontinued. These allowed investors to select into which individual loans they wanted to invest.
Bondora originally started and grew big with investment into individual loans and only 2018 introduced the simplified Go&Grow product which soon became very popular. Over the years Go&Grow became more and more important for Bondora as investors seemed to prefer the easy to understand product with a fixed interest rate.
Being a P2P lending platform, and the fact Bondora havent survived a major financial crisis, the risk is fairly high. Adding on top of that the no buy-back guarantee and you have a high risk somewhat high return asset.
They focus on unsecured consumer loans with principal amounts of €500 to €10.000 and repayment terms ranging from three to 60 months. In 2014 the UK Financial Conduct Authority (FCA) grants Bondora an interim license and in 2016 it gets licenced by the Estonian Financial Supervision Authority (FSA) as a credit provider.
Bondora issue the loans themselves through their parent company Bondora AS, which retains a share of the risk in each loan. The platform basically distribute shares of loans to investors, giving the borrowers below market rate loans and providing the investor with a much needed higher rate of return on investment.