I created an Omaraha account

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.

adom

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:

omsofar

If you have any good recommendations, then I’m all ears!

 

3 thoughts on “I created an Omaraha account

  1. Maximum loan amount should be 3500, but it can be raised if borrower has investments or the loan is secured with real estate.

    Last summer I purchased 10K (about 200-300 contracts) porfolio within one month and rates were much higher. Since the beginning of this year they have got many new investors and rates have crashed. Have bought only very few loans this year.

    The most important – interest rates include Omaraha’s fee 20% (estonian loans).

  2. Tere Kristi!

    Olen investeerinud Omarahas natuke alla aasta ja siiani tulemustega väga rahul. Eriti meeldib just tagatisfondi süsteem- siia maani olen oma 1000 EUR-ise portfelli pealt kahju saanud 8 EUR-i, mis on tulnud halbade laenude müügist tagatisfondile. Seega raha ei seisa ja saab pidevalt ilusti tööd teha.
    Aasta algusega võrreldes on intressid päris palju allapoole liikunud. Ilmselt on investorite ja vaba raha osakaal olulisel suurenenud.
    Ettevaatlik soovitaks olla alla 901 skooriga laenudega. Olen mitmest kohast lugenud, et nende halvaks minemise osakaal on üsna suur (portaal küll näitab, et asi nii hull ei ole). Ise investeerin ainult 901+ laenudesse ja siia maani on halbade laenude osakaal 0,7% (suurem osa laenudest on väljastatud rohkem kui 6 kuud tagasi).
    Kuna tootlus on hetkel oluliselt parem kui Bondoras siis olen võtnud suuna vahendid Omarahasse üle tuua.

    1. Jah, ma olen selle 800-900 skoori kohta kuulnud erinevaid asju, Ühelt pool, et on väga hull ja teisalt, et pole midagi nii kohutav. Eks testimise asi, hetkel läheb 50-50 mõlemasse gruppi, kuigi olen 900-sse lubanud panna 2x rohkem laenu kohta raha. Ilmselt kui tulevikus hakkan aeglasemalt raha lisama, siis võib vahepeal ka madalamate gruppide kraane “kinni keerata”.

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