We are happy to see the Bondster market grow constantly with new loan providers. Thanks to Ibancar World, our map coverage now also includes Spain. This non-bank loan provider specializes in car-secured loans. It is a unique fin-tech company which processes everything online and even significantly contributed to creating a legal framework in Spain which makes it possible to issue car-secured loans online. The system is now also a valuable intellectual property of the company.
Ibancar issued its first seven loans in July 2014; since then it has grown rapidly and has issued its 600th loan this year. It issues loans worth about 100,000 euro a month and it has lent over 2,000,000 euro since it was established. The average amount of a car loan is about 3,300 euro with the average LTV (loan-to-value ratio) at 45%. Since the loans are well secured, Ibancar does not have to worry too much about the share of loans in default, which is only about 9%. Borrowers can still use the car they pledged. Should a borrower default, the car is forfeited to the company.
Ibancar World comes to Bondster as the first Spanish loan provider; it is going to offer 11.25-12.25% return p.a. for investors and all its loans will feature the buyback guarantee. Ibancar provides loans up to 6,000 euro with maturity from one to three years. The scoring process requires the applicant to provide a confirmation of income for the last three months which has to be at least three times higher than the amount of loan repayment. In case the applicant cannot provide such confirmation, they are required to have a guarantor on the loan. Cars which serve as collateral for Ibancar must not be older than 15 years. Loan applications are fully processed online and the loan is granted within 48 hours following the application.