Estonian-based peer-to-peer lending platform Bondora has revealed how much principal is typically recovered on a €1,000 (£860) loan that reaches default.
The firm said it typically recovers the following:
- Estonia: €667
- Finland: €689
- Latvia: €667
- Netherlands: €667
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The projections are based on a 10-year period and historical recovery data.
“In the first three years after default, we typically recover between 31 per cent and 54 per cent of the outstanding principal, depending on the country,” the firm said.
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“These repayments accumulate gradually, year after year, through our structured recovery efforts.”
The firm added that it typically contacts customers who miss payments long before the loan officially defaults, which helps around 97 per cent of customers avoid immediate default.
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