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Klear Lending Review

Klear is a Bulgarian P2P platform started a little bit more than one year ago. The company is registered in Estonia. Klear was actually my first investment in P2P lending. I was looking at Prosper about 10 years ago and it wasn't available outside of the USA (and still isn't). Besides that, banks here were paying 5% for 1-year deposits so who would go for Proper's ROI of about the same rates but higher risk? Huh?!

Well, things changed quite a bit and nowadays 5% - 6% isn't that bad. And this is the average rate that Klear offers although my current ROI shows higher.

Unlike most of the P2P platforms Klear does not make any outrageous claims - their home page advertises 5.5% yearly ROI when your actual one could be better.

Here is my result about 2 months after investing BGN 1,000 (€ 500) in it:

Klear Dashboard

The Good

  • No outrageous claims or fake stats. I would say that their projected ROI is even humble considering that even rate A loans pay about 6% and D rated loans are at about 13%. They have assumed some % of bad loans in this calculation so I'll see better after at least one year of my original investment is passed.
  • Excellent website. Klear's is maybe the best European P2P site I have seen. Excellent reporting and user interface, you never wonder which is where, how is your portfolio doing and how much you made.
  • Excellent screening on loans. So far my delayed loans move between only 1% and 2% of all loans and the delay is rarely exceeding 30 days. After that they get paid. Looking at the secondary market, there are some defaulted loans but look like it's a tiny percentage of all. Klear seems to be really good at screening loan candidates which reduces the risk also to us, the investors.
  • Only €1 minimum investment. Most EU P2P platforms require at least €10 in a loan. Klear lets you put only €1 which makes large diversification really easy.
  • Good number of loans. Klear has several new loans available for investment per day. This is less than many big platforms but enough to give you good ongoing choices.

The Bad

  • Lower ROI. Compared to Mintos, Viainvest and other EU platforms which promise 10% - 15% per year, Klear has relatively lower ROI of about 5% - 7%.
  • Poor secondary market. There is a secondary market but it does not look too active. The offers on it are not good - people try to sell delayed loans without any discount and defaults with 15% off. Huh. The good side is that you can probably quickly sell your loans with very small discount should you need the money quickly.
  • No buyback guarantee. At the time of writing this there is no buyback guarantee for any loans on Klear. This shouldn't stop you from investing, just have in mind that the risk is yours. Carefully examine the loans and take decisions.

Overall Opinion

I like it. Although the ROI is on the lower site, their excellent screening and great website put it on the winner's side.

Published at Sep, 19 '17 , Read 277 times.

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