Comparison of European P2P Lending Sites

If you clicked on this post, you might be already familiar with P2P lending and the idea behind it.

In this article, I will introduce you to six of my preferred P2P lending platforms from Europe that I am currently investing in. If you are looking to find the best P2P lending sites in Europe, this post might be relevant to you. This article also includes a list of 42 European P2P platforms with some basic information that you can use to diversify your P2P portfolio.

 

Best P2P lending sites in Europe

 

There are more than 40 P2P lending companies in Europe. To find out which one is the best is not an easy task. It demands months of testing and at the end of the day, it all comes down to your personal preferences. Most of the popular lending platforms in Europe are based in Baltic countries such as Latvia and Estonia. It’s mainly due to the suitable legislative environment for P2P lending platforms.

When it comes to choosing a P2P platform I have a look at the following aspects:

  • Reputation on Social Media
  • Transparency (content about P2P lending, information about the buyback guarantee and securities, financial reports)
  • Loan types and other means that support the diversification of your portfolio
  • Average returns (I aim to go above 10% p.a.)
  • Default rates (if any)
  • Supply of investment opportunities (amount of loans)
  • The functionality of the P2P lending platform (user experience, features such as auto invest or secondary market)
  • PR and Customer Support (send an email to the P2P lending platform and evaluate the response)

I look at all of the information and decide for myself whether it is worth the risk to invest on this platform compared to the potential returns.

Quite obvious right? Well not for everyone.

Do not invest your money into anything if you are not familiar with the asset class and the risks connected to it. There are many investors who are in for the short-term gains without educating themselves first - like this guy - don’t be one of those. If it won’t harm you now, it might later.

Let’s have a look at the six European Peer-to-Peer lending platforms that I personally invest in and where I have not had any defaulted loan since I started investing in P2P loans in 2017.

Minimum investment amount: €10
Loan types: 8
Countries: 30
Loan originators: 60
Currencies: 12
Interest Rate: 5% - 14%
Loan Period: 1 - 38 months
Auto Invest: YES
Buyback Guarantee: YES

My Mintos Rating
94%

Mintos is one of the largest P2P lending sites in Europe. It offers by far the best diversification options and one of the most user-friendly investment platform for P2P investors.

Investors can choose from a variety of investment features that will help them to diversify their portfolio across all verticals based on own preferences. The European P2P lending platform is suitable for beginners as well as more experienced P2P investors.

The Invest & Access feature allows you to diversify across all variables within one minute and grow your capital by more than 10% per year.

Almost anyone (except UK residents) with a European bank account is eligible to invest on Mintos. Mintos accounts for nearly 60% of my P2P investments.

Minimum investment amount: €10
Loan types: 2
Countries: 5
Loan originators: 18
Currencies: 1
Interest Rate: 11% - 13%
Loan Period: 2 days to 4 years
Auto Invest: YES
Buyback Guarantee: YES

My Peerberry Rating
80%

Peerberry is a Latvian P2P lending platform with a focus on short-term loans for a maximum duration period of 30 days. Lately, the platform started listing leasing contracts for up to 4 years.

The user experience on Peerberry is very good. It is by far not as advanced as on Mintos but it offers everything a passive investor needs.

You will find an easy Auto Invest feature that allows you to diversify and reinvest your capital without keeping track of loan listings. Additionally, you have a buyback guarantee which activates as soon as the borrower is late with its payments for more than 60 days.

I have been using Peerberry since 2017 and the site accounts for nearly 30% of my P2P investments.

Minimum investment amount: €50
Loan types: 7
Countries: 7 (usually only 3 available)
Loan originators: 1 (the P2P platform itself)
Currencies: 1
Interest Rate: 9% - 13%
Loan Period: 6 - 24 months
Auto Invest: YES
Buyback Guarantee: NO

My EstateGuru Rating
88%

 

EstateGuru is an Estonian P2P lending platform that lists secured business loans mostly from Latvia, Estonia, and Lithuania.

There is no buyback guarantee as we are used from platforms such as Mintos and Peerberry who mainly list personal and short-term loans.

EstateGuru is a suitable alternative for every investor who wants to be a part of the real estate business but can’t afford to invest a huge amount of capital.

There is no secondary market, so you can not withdraw your investment before the end of the loan period.

EstateGuru accounts for 5% of my P2P investments.

Minimum investment amount: €1
Loan types: 4
Countries: 5
Loan originators: 1 (the P2P platform itself)
Currencies: 1
Interest Rate: 15% - 21%
Loan Period: 4 months - 2 years
Auto Invest: NO
Buyback Guarantee: YES

My Envestio Rating
80%

 

Envestio is an Estonian P2P platform that lists loans from the energy, crypto mining and real estate sector. I was one of the first investors who joined the platform back in the beginning of 2018.

The number of investors since skyrocketed so most of the loans listed on the platform are funded within minutes. This is one of the weak points of the P2P landing site as a lot of capital isn’t invested due to no Auto Invest function.

The high interest rate with an optional buyback guarantee is something not many P2P lending companies in Europe can match.

Envestio accounts currently for 3% of my P2P investments.

Minimum investment amount: €10
Loan types: 1
Countries: 5
Loan originators: 6
Currencies: 1
Interest Rate: 12% - 15%
Loan Period: 1 - 180 days
Auto Invest: YES
Buyback Guarantee: YES

 

Robocash is a Croatian P2P lending platform that lists mainly short-term loans from Eastern European countries.

The buyback guarantee from Robocash activates as soon as the borrower is late with its payments for more than 30 days.

For most other P2P platforms the buyback option activates after 60 days of overdue payments.

Robocash accounts for 2,5% of my P2P investments.

Minimum investment amount: €50
Loan types: 2
Countries: 1
Loan originators: 1 (the P2P platform itself)
Currencies: 1
Interest Rate: 14% - 21%
Loan Period: 3 - 24 months
Auto Invest: NO
Buyback Guarantee: NO

 

Crowdestor is a rather small P2P lending platform from Estonia that lists secured business and real estate loans with a high interest between 14% and 21% p.a.

A unique feature of the P2P platform is the buyback fund, which cannot be compared with the buyback guarantee as we are used to from other P2P lending sites. The buyback is an additional safety feature that should decrease the risk of lost in the unlikely event a loan defaults.

I am currently testing the Crowdestor platform - stay tuned for the upcoming review. Crowdestor accounts for 2,5% of my P2P investments.

Here is a table that compares the best European P2P platforms head to head

Mintos Peerberry EstateGuru Envestio
Minimum Investment Amount €10 €10 €50 €1
Loan Types 8 2 7 4
Countries 12 5 7 5
Loan Originators 60 18 1 1
Currencies 12 1 1 1
Interest Rate 5% - 14% 11% - 13% 9% - 13% 15% - 21%
Loan Period 1 - 38 months 2 days to 4 years 6 - 24 months 4 - 24 months
Buyback Guarantee YES YES YES YES

If you are just starting out with P2P lending you certainly don’t have to diversify your portfolio across all P2P platforms.

Even advanced P2P investors don’t diversify across all available platforms. Pick one or two platforms to test and see from there if you see the need to invest in multiple sites.

If I would start from scratch again I would start with Mintos as it’s the most developed P2P platform in Europe in my opinion.

The six mentioned P2P sites are just the tip of the iceberg. There are more than 40 P2P lending companies in Europe. Here is a full list of European P2P platforms with some additional information.

P2P Platform Country Average Returns Loan Types Buyback
Auxmoney Germany 3% Personal Loans NO
Bitbond Germany 8% Business Loans NO
Bondora Estonia 14% Personal Loans NO
Bulkestate Estonia 15% Bridge Loans, Development Loans NO
Crosslend Luxembourg 15% Personal Loans, Mortgages, Business Loans NO
Crowdestor Estonia 11% Real Estate Finance, Business Loans Only Buyback Fund
Debitum Network Latvia 10% Business Loans NO
Do Finance Latvia 8% Personal Loans YES
EstateGuru Estonia 12% Real Estate Finance, Bridge Loans NO
Fast Invest UK 14% Personal Loans YES
Fellow Finance Germany 12% Personal Loans, Business Loans NO
FinBee Latvia 18% Personal Loans, Business Loans Only Buyback Fund
Fixura Finland 8% Personal Loans NO
Flender Ireland 10.50% Business Loans NO
Funding Circle Germany 6% Business Loans NO
Grupeer Latvia 14% Business Loans, Development Loans, Personal Loans YES
House Crowd UK 7% Mortgages NO
Investly Estonia 12% Invoice Financing NO
Iuvo Group Estonia 9% Payday Loans YES
Kuetzal Estonia 13% Business Loans YES
Lendahand Netherlands 3% Business Loans Partially
Lenndy Latvia 12% Personal Loans, Mortgage YES
Linked Finance Ireland 10% Business Loans NO
Mintos Latvia 12% Personal Loans, Car Loans, Mortgages YES
Neo Finance Lithuania 17% Personal Loans Only Buyback Fund
October / Lendix France 6% Business Loans NO
Peerberry Latvia 12% Payday Loans YES
Profitus Latvia 11% Development Loans NO
Ratesetter UK 5% Personal Loans, Business Loans NO
Reinvest 24 Estonia 15% Real Estate Financing NO
Rendity Germany 6% Real Estate Financing NO
Robocash Croatia 12% Payday Loans YES
Swaper Latvia 12% Personal Loans YES
Twino Latvia 9% Personal Loans YES
Viainvest Latvia 11% Personal Loans YES
Viventor Latvia 10 Personal Loans YES
Zlty Melon Slovakia 8.00% Personal Loans YES
Zopa UK 5% Personal Loans NO
Raize Portugal 7% Business Loans NO
ClicInvest Portugal 6% Business Loans NO
Zonky Czech Republic 6% Personal Loans NO

My P2P portfolio

P2P investing is as risky as any other investment. If you decide to invest in one of the European platforms I highly recommend to get familiar with the risks and securities each platform has to offer.

Since 2017 I have invested in several P2P lending sites with mostly positive experiences and no loss of capital. In that time I managed to build a P2P portfolio of €20.000.

Here is my average interest rate that I manage to receive with the following European P2P lending sites:

P2P lending site Investment Amount Average Annual Return % of the total P2P investment
Mintos 11.400 10.38% 57%
Peerberry 5.800 11.58% 30%
EstateGuru 1.100 12.08% 5%
Envestio 600 19.53% 3%
Robocash 500 12% 2.5%
Crowdestor 500 14% 2.5%

To minimize the platform risk I diversify my portfolio across multiple P2P platforms.

Why don’t I diversify equally across all platforms? That’s a valid question.

 

First I did not start investing on all European P2P lending sites at the same time and shifting my investments from one platform to the other does not make much sense unless the capital is not invested (lack of loans).

 

Not every platform offers what I am looking for in terms of returns or diversification options. I, therefore, don’t treat each platform equally. See my internal P2P lending ratings for each P2P platform to find out more about it.

 

As from my perspective, it does not serve much purpose to diversify across more than 4 to 5 P2P lending sites. The only reason why I am invested in all of the above-mentioned platforms is to test it out and give you my honest opinions about them in case you are thinking to invest on one of those P2P sites.

 

What P2P lending site to choose?

 

Start with Mintos as this platform offers you the best diversification options. It lists loans from over 60 lenders compared to other platforms that only list a few loan originators. The supply of loans on Mintos is also quite stable with occasional shortages. For most of the investors, Invest & Access feature (which I describe here) is going to be very valuable.

It only takes 2 minutes to achieve very good diversification of your P2P portfolio on Mintos. Additionally, you can access your investment almost immediately without any fees and discounts. With average returns of more than 12% p.a. the Invest & Access feature ranks Mintos to the top of the best Peer-to-Peer lending sites in Europe.

Additionally, you will receive cashback of 1% from your investment amount during the first 90 days if you sign up with Mintos through this link.

Last Update: 1 July 2019

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