Afranga is a young and rather small platform that gained strong popularity among investors. Famous for their initial 18% loans, the platform quickly attracted capital. One reason for this is that Afranga's founding company is the Bulgarian loan originator Stikcredit. Stikcredit was founded already in 2013 and is known to investors as a mintos and viventor loan originator. Since its inception, however, rates have been adapted to market developments. As of November 2021, you can earn relatively stable 12% of interest. However, high popularity led to high demand of primary market loans. In October the platform launched a secondary market at the right time to counter growing cash drag issues. All in all, we consider afranga a nice niche platform if you feel like entering the Bulgarian loan market. However, so far Stikcredit is the sole loan originator on Afranga such that there is no diversification possible.
|Investment Structures||Marketplace (peer-to-business)|
|Originator Types||Loan Originators|
|Investing Into||Consumer Loans|
|Interest Rates||12.00% – 18.00%|
|Number of Originators||1|
|Number of Countries||1|
|Minimum Investment||10 EUR|
|Average Net Return||n/a|
|Total Loans Funded||11,645,319 EUR|
|Loans 1 To 15 Days Late||n/a|
|Loans 16 To 30 Days Late||n/a|
|Loans 31 To 60 Days Late||n/a|
|Loans 60 Plus Days Late||n/a|
|Loans Defaulted (In Recovery)||n/a|
|Loans Defaulted (Recovered)||n/a|
|Loans Defaulted (Written Off)||n/a|
|Average Amount Per Investor||n/a|
|Late Fees Earned||n/a|
You can create multiple strategies and prioritize their execution order. Other configuration options are: interest rates, remaining loan term, investment in one loan or target portfolio size.
You can manually invest both on the primary and on the secondary market.
The platform introduced in October 2021 the long awaited secondary market. Before that, many investors concentrated on very short-term loan investments. However, terms vary but are not very long-term neither (we have seen up to 24 months) on afranga.
The platform states that loans are bought back when 60 days late: "All loans listed on Afranga come with a Buyback Guarantee. If a loan becomes 60 days delinquent you will receive back your investment plus accrued interest."
|Skin in the Game|
Stikcredit loan originator has usually 10% skin in the game.
|Maximum Loan To Value (LTV)||n/a|