P2P (Peer-to-Peer) loans are a form of investment. Here, you do not invest your money in a bank, but lend it to others for interest. For example, private individuals who want to buy a car, or business people who want to renovate a house. There are various platforms online that provide these loans. I am registered with three of these platforms and invest a small part of my money there. You are promised very high interest rates, but as you can safely imagine, this is not without risk. In the following sections, I introduce individual platforms and report on my experiences. If you feel like learning more, I recommend surfing online. There are tons of free e-books and articles available about Peer-to-peer platforms.
Bondora
First P2P platform where I invested € 500 last summer is Bondora. Go & Grow strategy is ideal for beginners.I use that too. This is super easy. You enter what you want to spend money on, how long and how much. You can decide if you only start once with a starting balance, like me, or if you want to pay in addition monthly. Done! Of course, you can always add money or withdraw, which costs 1 EUR per transaction. There are no other fees.
It could not be easier
Go & Grow is a great way to experience the first P2P experiences without first going deeper into the subject. For the return of about 6-7% is a little lower, but still much better than the good old passbook. Personally, I find the other products too risky. That’s why I stayed with Go & Grow. Start investing today!
EstateGuru
If you like real estate, EstateGuru is the right place for you. Here is my referral link , which gives you a 0.5% bonus on your investment in the first 3 months after signing up, up to a maximum of 50 EUR. EstateGuru is all about real estate P2P loans. The minimum investment is 50 EUR. There are no fees. So I invested in 10 different properties to distribute my 500 EUR. Here I do not use autoinvest, but rather look at the real estate list manually. Since there are only a few properties to choose from, this is also quite fast. Weekly new offers are added. The interest is around 9-12%. So far I have generated a return of 10.73%. A loan that has already been successfully repaid I immediately reinvested the money in EstateGuru. The platform is very clear. The properties are located in Estonia, Latvia and Lithuania. There are also photos, so you can get a picture. Interest is paid monthly, quarterly, paid annually or at the end of the loan term.
Mintos
Mintos was the third P2P platform I tried. For investors like me, so the people who earn money there and then lend, there are no fees. On the other hand, it’s not the borrowers who are directly involved, but a large number of loan originators, the institutions that close the credit agreement with the client and receive the money from Mintos investors. The good thing is that you can participate with very small amounts. So if someone wants to take out a loan of 1,000 EUR, you can already get involved with Mintos with an amount of only 10 EUR. In return, you will receive high interest rates in return, sometimes well over 10%.
High interest rates and high risk – one cannot go without the other
However, high interest rates also mean high risk. If the borrower does not repay, you can also sit on it. Mintos, and all other P2P providers, are not liable for late payments or credit losses. So you can lose your money, so invest only a small part of your money in such investments and minimize your risk with different strategies. I’m successful with that and I enjoy watching my growing earnings on a regular basis.
How you still have fun when creating
At Mintos, there are two ways to minimize the risk. For example, if you want to invest 500 EUR in P2P loans, you can theoretically spread your money across many different loans with small sums. The distribution of money to different investments is called Diversification: Put simply – you do not put all your eggs in one busket. That’s easy with Mintos via the Auto Invest function. You can change and delete your settings at any time. I find that very convenient – once set, everything goes by itself. I did not feel like looking through thousands of loans. The second way to minimize your risk is to invest in loans that have a buyback guarantee.
Note : All investments and sources of income, including P2P interest income, are taxable. So do not forget to state your interest income on your tax return
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