The entire lending cycle is managed through the company’s proprietary technology platform. The platform handles application intake, risk assessment, contract and payment management, customer support, and management reporting. Its scoring system uses credit history along with additional behavioral and application data, enabling the company to make decisions in near real time while continuously monitoring the performance of individual customer cohorts.

The underlying loans are unsecured; however, their relatively low individual value allows exposure to be spread across a large number of borrowers. ITF Group retains a 10% stake in the financed loans, and all loans offered on Bondster come with a buyback guarantee. This guarantee reduces the impact of an individual borrower’s default, although its effectiveness depends on the liquidity and financial stability of the loan originator itself.

The current return offered to investors on Bondster is 11% p.a.