Peer to peer lending is fast becoming one of the best financial investments. The high returns and the full automation is two of the numerous reasons why crowdlending platforms fast became popular.
With the bad interest rate obtainable by investors in banks, most investors are turning away from banks. The banks make the most money, using your own capital. That’s why crowdlending is becoming the best alternative to investing.
Crowdlending offers both the investor a high interest rate and the borrower, an affordable interest rate. It’s a win-win for both the investor and the borrower.
In 2005, the first peer to peer lending platform was established. Since then, there have been a sharp growth in the crowdlending platform.
Usually, you’ll see investors enquiring about the best Peer to Peer platform to invest into. Which is why we’ll be considering the three best P2P platforms based on their investment options, the returns, risk level, minimum entry and other important features.
1. Grupeer – Best Consumer Loan P2P Platform.
Grupeer was launched in 2017 as a crowdlending platform that focuses on business loans and development projects. Grupeer is functional in Belarus, Estonia, Germany, Norway, Russia, Philippines and Latvia.
Grupeer is a mixture of classical loans with real estate. Real estate is one of the best platform for any investor. Usually, real estate gives the best returns and security as an investor.
The beauty of Grupeer lies in the buy back guarantee that comes with a good number of the loans on the platform. What this means is that even if the borrower doesn’t pay back the loans, you’ll still get back your invested capital. It’s a win-win situation for the investor as you can have a high yield on investments with a secured investments.
Even though Grupeer is open to only investors from the European Union, you’ll need to verify your identity and address. Funding the account comes easy through a SEPA account transfer. You can fund your account via Transferwise also. What this implies is that you don’t have to have an EUR account before funding your account.
Grupeer investors gets a 14.2 average return on their investments into the investment options. Investors are also entitled to 1% cash back as sign up bonus upon registration.
Anyone can invest into Grupeer, it’s only a €10 minimum investment to get started on Grupeer.
Grupeer also allows you to automate your investment by setting the investment term and returns to enter the trade. With the basic interface, it’s easy to understand and use.
2. CrowdEstate. – Best Real Estate Crowdlending Platform
Another real estate crowdlending platform with a high return rate. Crowdestate operates from Estonia and invest into real estate development all over Europe. The duration of investment in Crowdestate range from 1 to 4 years.
Crowdestate takes their time into vetting the real estate projects that are lised for investments on their website. According to crowdestate, only 5% of the total project submitted ends up as investment on their website. From 2014 when Crowdestate was launched, the P2P platform have made impact in the finances of their investors.
CrowdEstate is into real estate, mortgage and business loans. Investors on Crowdestate are entitled for around an average of 20.3% returns on their investments. However, Crowdestate do not offer buy back guarantee on any loan but with a thoroughly vetted project, loan defaults are limited.
Due to the industry in which CrowdEstate operates, the entry point is one of the highest in the industry with €100 minimum investment.
For a newbie in the crowdlending industry, Crowdestate is one of the best to start it as it is beginner friendly with the easy to understand website. One thing is sure on Crowdestate, a high and solid returns on investment.
Investors can also take advantage of the auto-invest options of the Crowdestate platform. You can invest into Crowdestate as an individual and as a business. Crowdestate being an European crowdlending firm, US investors cannot invest due to tight regulations.
Just like any investment, projects on Crowdestate are likely to fail. If the projects fail, it’ll backlash on you.
3. FinBee– Best in Business Loans
Finbee was founded in 2015 as a peer to peer lending platform based in Lithuania. The P2P platform provides you with numerous options to diversify your investments. As an 18year old with an European bank account, you can invest into FinBee.
Today, Finbee is one of the best European peer to peer platform due to the high yield. The platform has around 20% yield returns. The platform is growing with around 12,000 users all over Europe.
Being a fully regulated company, investors enjoy an additional layer of security in their investments. FinBee relies on one of the biggest bank in Lithuania and the Baltic states, Citadele for it transactions. Opening an account with Finbee requires a stringent KYC process to vet their investors and borrowers.
Finbee specializes in two areas of the sub-industry, personal loans and business loans for SMEs. FinBee always advises investors to diversify their investments to secure their investments and also increase their accumulated returns.
However, Finbee doesn’t have a buy back guarantee on loans. Nonetheless, being a regulated firm, loan defaulters can be dealt with under the law. You can invest into FinBee with as low as €5. The loan term ranges from 12 to 60 months. There’s an Autolend tool on the Finbee platform which help to automate your investments.
FinBee is best for experienced crowdlending investors. If you are ready to take the risk, the returns are worth the risk.
We’ve considered three crowdlending platforms with high returns and diversification option. You can pitch your tent with any of these three P2P platforms as an investor.
Grupeer is one of the best in the area of consumer loans. When it comes to real estate development, Crowdestate is the best. Lastly we have Finbee which is the best in the area of business loans.