For a long while I was rather sceptical about Omaraha. Their PR wasn’t the best – many people cited quotes from forum discussions where the owners didn’t communicate to investors in the best of ways and not much analyzable data has been moving around.
Essentially the site works similarly to all other P2P lending sites. People can ask for loans, and the current loan maximums are similar to Bondora – up to 10K, however most loans seem to be on the smaller side of that. Also, of course the volume of loans being moved isn’t comparable to Bondora, and while they expanded to Slovakia a while ago, I’m not sure how well that is going.
What is problematic though, is the lack of information about investment statistics. They have a rather interesting method of earning their money. Investors can bid to be included in loans with two different metrics – loan interest they desire and the “bonus” they are willing to pay to the portal (so I’m assuming it’s straight to the profit line). Also if you are willing to offer money at the same % as someone else, but they are willing to pay a higher bonus rate then they get ahead of you in the queue.
Overall I’d say it’s definitely a confusing system. Figuring out how log or high to set the percentages can definitely be a challenge and I ended up asking others for their experiences. I’ve played around with them a bit here and there, but at some point it seems like the money stops moving. Currently I’ve managed to invest 500€ into 35 loans, meaning that I’m about on pace to invest the initial 1000€ in a month. I can probably test increasing the interests a bit and see how it works out, since I’m likely to aim for a 500€/month rate of reinvestments.
Definitely an interesting experiment, but a bit more effort than I wanted for tuning the interest rates. After I manage to invest a bit more, I can start running statistics on which groups get more loans sent out, and start increasing those rates slowly. Sadly the statistics part seems to be a bit lacking. However, they do have a warranty fund for defaults, and as the economy might start doing worse, then it’s definitely a nice extra perk to be able to sell defaulted loans, not wait for a very long perspective recovery happening. So far the numbers look like this:
If you have any good recommendations, then I’m all ears!