How to choose the best crowdlending platform
One of the most crucial decisions you will have to make when looking to invest in crowdlending is choosing the right platform, and the fact that there are thousands of P2P platforms doesn’t help either. However, the decision will depend entirely on your needs and personal preferences. The right platform for me may not be the right one for you.
Thankfully, some P2P platforms offer various strategies within their platforms that enable investors to put in their different types of loans that fist their individual needs. Therefore, instead of spreading thin your investment across the board, you can invest through a number of platforms.
The best crowdlending Platforms In Europe alone, there are over a hundred crowdlending platforms that you can choose from to make your investments. They, however, differentiate themselves by a number of criteria such as their risk and returns, the projects they invest in (personal, business, real estate, etc.), the minimum amount to invest, and so on. While there are numerous P2P platforms, the only handful can be trusted. Here are some of the most common crowdlending platforms you can also try in Europe.
Up to date, Mintos has issued over EUR 3 billion in investments, making it one of the biggest crowdlending platforms in Europe. Investors can invest in consumer loans such as cars, mortgage, short-term, and personal, as well as business loans like invoice financing, agriculture, business, etc. starting from as little as EUR 10 with return on investment of 11% per year on average.
Grupeer has launched barely two years ago (2017) but it has managed to rapidly grow to compete with seasoned crowdlending platforms. The firm offers a simple interface to invest in loans such as real estate, personal, and business, in exchange for returns above the market average of about 13.5%. What sets Grupeer apart is the fact that all loans are secured by the platform, meaning they buy back the loans in case of defaults.
This platform allows investors to invest in original and more concrete business projects such as cryptocurrency, video games, restaurants, yacht and boat rental, shops, and transportation business. The platform allows people to invest across the world with projects from Malaysia, United Kingdom, Russia, Thailand, Cambodia, Spain, and many other countries. Unlike Grupeer, investments done through Crowdestor are not secured, explaining the return rate of 18% on average per year.