Blender loans is a peer-to-peer lending marketplace from Israel, focused on the consumer loans. Company was founded in 2014, experienced exponential growth and already provided approximately 12 million EUR in loans.
The Blender loans platform brings together private individuals who want to borrow and potential investors who are willing to finance a certain individual and earn profits that exceed interest rates offered by banks. Blender loans is a relatively small P2P platform compared to Mintos or Twino with over €200 million each lent to individuals. However, recently Blender loans announced its global expansion, beginning with new offices in Milan, Italy and Vilnius, Lithuania that will serve customers in Italy and the Baltics. The company will continue expanding its global operations into territories that are craving consumer credit. In 2017, BLender plans to launch operations in Africa, Latin America and other European Union (EU) countries.
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Key facts about Blender loans
| Estimated annual returns: | Up to 7.3% |
| Launched: | 2014 |
| Autoinvest: | Yes |
| Loan security: | No |
| Provision fund: | Yes |
| Buyback guarantees: | No |
| Registered investors: | 123 in July 2017 |
| Minimal investment: | €0 |
| Time to become invested: | 1-10 days |
| Time needed managing: | Low |
| Regulation: | Not regulated |
| Country of operation: | Israel, Italy, Lithuania |
| Defaulted loans: | 3.2% |
| Borrowers verification: | By the platform |
| Accepted currencies: | Euro |
| Accepts investors from: | Europe |
The Blender loans Review: Pros and Cons
PROS
- International platform with strong underwriting team
- No late loans for more than 30 days
- Advanced dashboard for managing loans
CONS
- Low interest rates only up to 6%
- Not Regulated
- Complicated investment account opening process
Competitors:
Savy, Mintos, Twino, Lenndy, RoboCash, Grupeer
Blender loans review: What I have experienced so far…
I have been investing my own money into Blender since August 2017. First of all, I have to point that Blender loans platform has some fancy tools I have never seen before. As an investor you can simulate your investment portfolio and check your potential returns. However, the fees for borrowers and investors are higher compared to other marketplaces. In Italy the platform charges borrowers a 4.5% origination fee and investors 1.5% of each repayment (principal and repayment). The fee for selling a loan on the secondary market is 0.45%.
Investors on the Blender platform can earn predicted interest rates of 5-6% annually. In Baltics p2p lending platforms investors can earn up to 30% annual returns. However, Blender loans platform has the safeguard fund that acts as an additional layer of protection to the lenders in case of a default. Blender’s default rate is approximately 3% before activating the safeguard fund. Thanks to the SafeGuard fund, the effective default rate is 0% says the service. Blender also offers ReBlendTM, which is a secondary market that offers the lenders the option the trade their loan portfolios and enjoy liquidity.
Also, investment account opening process is quite complicated. It takes a while to fill all the data and upload documents.
Overall, Blender loans platform seems to be well managed company with know-how.
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Written by Tomas Medeckis
January 17, 2019
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May 11, 2019
Definetely a bad idea to invest on blender. I invest in several p2p platform, and this is the only one where I lost money. Their guarantee fund is not applied cause they have no money. Stay out!