Estonian FSA has issued Bondora a credit provider license, enabling the social lending service to take more active role in its own marketplace.

“The application process has been very thorough and we have been working extremely hard for nearly a year to fully comply with all of the stringent requirements set out,” the company said in a statement.

Bondora said the FSA license will have direct implications for its service: it will retain a share of each loan, capital signed for loans will not be locked any more, and access lower risk loans will increase.

Bondora was founded as isePankur back in 2008 and pioneered the concept of social lending in Estonia. Today it has lending clients also in Finland and Spain – and investors in 40 countries around the world. The service allows individuals and small to medium-sized enterprises to borrow and lend between each other, skipping the whole traditional banking process.

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