Bondora discloses average loan recovery rate for delinquent loans
In the world of peer-to-peer lending, recovery rates are a crucial factor for investors and borrowers alike. Estonian-based platform Bondora has shared insights into the average principal recovery rates for loans that default on their platform, across several countries.
The recovery rates, based on a 10-year period for loans that default, vary slightly among the four countries considered: Estonia, Finland, Latvia, and the Netherlands.
In these nations, Bondora typically recovers between 31% and 54% of the outstanding principal, depending on the country, over a decade. It's important to note that these figures are derived from historical recovery data and comparable market trends for the respective countries.
Let's take a closer look at the recovery rates for each country:
- Estonia: Bondora typically recovers €667 on a €1,000 loan that defaults.
- Finland: In Finland, Bondora typically recovers €689 on a €1,000 loan that defaults.
- Latvia: The recovery rate in Latvia is similar to Estonia, with Bondora typically recovering €667 on a €1,000 loan that defaults.
- Netherlands: In the Netherlands, Bondora typically recovers €667 on a €1,000 loan that defaults.
It's worth mentioning that Bondora's recovery efforts accumulate gradually, year after year. The platform is proactive in reaching out to customers who miss payments, helping around 97% of customers avoid immediate default.
While the article does not provide information about the default rates for loans on Bondora's platform or recovery rates for loans in other countries beyond Estonia, Finland, Latvia, and the Netherlands, it offers valuable insights into the potential returns investors might expect from defaulted loans on Bondora's platform.
[1] The recovery data used by Bondora is historical.
[1] The average principal recovery rates for loans that default on Bondora's platform, across four countries (Estonia, Finland, Latvia, and the Netherlands), are influenced by market trends and range between 31% and 54% of the outstanding principal over a decade.
[2] As Bondora's recovery rates vary among these countries, with Estonia, Latvia, and the Netherlands having similar recovery rates (€667 on a €1,000 loan that defaults), investors might consider their finance and business strategies based on these or other investment opportunities with comparative recovery rates.
