These are my absolute best P2P lending platforms in Europe. These platforms are helping me to build and grow my investment portfolio in a healthy and diversified way.
These platforms are European, and I have them in my portfolio. They stand out for their performance and they complement each other to provide extra diversification to my crowdlending investment portfolio.
Best P2P lending platforms in Europe list:
Here is an overview of the best P2P lending platforms in Europe:
- Mintos
- Debitum Network
- Esketit
- Robocash
- Peerberry
- Indemo
- Fintown
- Brickstarter
Top 10 Best P2P Lending Platforms to Invest in 2024 (for Europeans) one by one
1. Mintos
Mintos is the leading P2P and P2B loan marketplace in Europe. The Latvian financing platform is unrivaled in terms of size and diversification and has been fully regulated since 2022. Mintos offers a wide variety of loan types, including personal loans, business loans, and more.
The platform has over 500,000 investors who have collectively financed loans worth over 8 billion euros, so we cannot call it a real “hidden gem”.
Advantages of investing with Mintos:
- Vast Array of Loans: Offers a wide range of loans including P2P, P2B, and more.
- Diverse Credit Originators: Numerous loan originators provide a variety of loan options.
- Low Minimum Investment: Start investing from just 10 euros per loan.
- Buyback Guarantee: Most loans come with a buyback guarantee.
- Regulated Entity: Fully regulated under the new European crowdfunding regulations since 2022.
- International investors are welcome
Disadvantages of investing with Mintos:
- Currency Risk: Investments in different currencies may expose investors to exchange rate fluctuations.
- Default Risk: Although there are buyback guarantees, there is still a risk of loan defaults.
- Regulatory Changes: Future changes in regulations may impact the platform’s operations and investor returns.
Risk Meter: Low/Moderate
How Mintos fits into our investment portfolio: Mintos has historically been the largest component of my global P2P lending portfolio. Its extensive range of over fifty loan originators from various countries ensures a level of diversification and strength that is unmatched by its competitors.
2. Debitum Network
Debitum Network is a European marketplace for loans, bringing together various originators focused on loans to businesses. Operating since 2018, Debitum offers nice returns with a default rate of zero and is fully regulated, making it one of the pioneering platforms in obtaining a license to provide investment services.
Advantages of investing with Debitum Network:
- Regulated Platform: Licensed to operate as an investment broker, ensuring trust and security.
- Investor Protection Mechanisms: Includes a Buyback Obligation for all operations and impartial asset audits assigning professional credit ratings.
- High Returns with Low Relative Risk: Focus on high returns while maintaining a lower risk profile.
- Commercial Loan Focus: Offers loans to businesses backed by guarantees, adding a layer of security to investor funds.
Disadvantages of investing with Debitum Network:
- Limited Loan Originators: Fewer loan originators compared to some larger platforms, which may limit diversification.
- Complexity for Beginners: The platform may be more complex for novice investors due to its business loan focus.
- Currency Risk: Investments in different currencies may expose investors to exchange rate fluctuations.
Risk Meter: Moderate/High
How Debitum Network fits into my investment portfolio: Debitum Network has built a solid reputation over its five years of operation and is gaining traction among knowledgeable P2P investors in Europe.
It is an excellent complement to other platforms, providing an opportunity to diversify with commercial loans that are secured and audited.
3. Esketit
Esketit, backed by the reputable Cream Finance group, offers an attractive risk-return ratio and short-term loans from just 10 euros per operation. The platform is gaining popularity among European investors for its short-term investment opportunities.
Advantages of investing with Esketit:
- Rapid Development: One of the fastest-growing platforms, popular among European investors.
- Strong Backing: Supported by Cream Finance.
- Attractive Returns: Short-term loans with very attractive double-digit returns.
Disadvantages of investing with Esketit:
- Short Track Record: As a relatively new platform, it lacks a long-term performance history.
- Limited Loan Types: Focuses primarily on short-term loans, which might not suit all investment strategies.
- Platform Risk: Being a newer platform, it carries the risk associated with the stability and long-term viability of the business.
Risk Meter: High
How Esketit fits into my investment portfolio: Esketit has immense future potential. Its balanced risk-return profile makes it a current favorite in my portfolio.
4. Robocash
Robocash is a Croatian crowdlending platform specializing in automated investments in short-term consumer loans with buyback guarantees. As one of the most accessible and user-friendly options for P2P loan investors, Robocash offers a simple way to achieve high returns with minimal effort.
Advantages of investing with Robocash:
- Short-Term Loans: Most loans are for a very short duration (1 month or less), ensuring quick turnover.
- Autoinvestment Focus: Easy to set up with a few parameters, allowing for fully automated investing.
- Diversified Investments: Invest in operations from multiple originators and countries, achieving attractive returns.
Disadvantages of investing with Robocash:
- Limited Loan Types: Focuses primarily on short-term consumer loans, offering less variety than some competitors.
- Interest Rate Risk: Changes in market conditions could affect the attractiveness of the fixed interest rates.
- Platform Risk: As with all P2P platforms, there is a risk associated with the platform’s overall stability and operations.
Risk Meter: Moderate/high
How Robocash fits into my investment portfolio: Robocash is a valuable complement to short-term investment platforms like Peerberry and Viainvest. It enables us to diversify my portfolio while securing above-average sector returns. Its simplicity and ease of use make it a great choice for investors looking for a hassle-free investment experience.
5. PeerBerry
PeerBerry offers short-term loans with net annualized returns around 12%. The platform is very user-friendly, ideal for beginners, and provides loans with buyback guarantees offered by lending companies.
Advantages of investing with PeerBerry:
- Profitable Short-Term Loans: Loans with Buyback Guarantee, highly sought after by P2P loan investors.
- User-Friendly Platform: Very easy to use, ideal for beginners.
- Low Minimum Investment: Start from just 10 euros, with good diversification of originators.
Disadvantages of investing with PeerBerry:
- Limited Loan Types: Primarily focuses on short-term loans, which may not suit all investment strategies.
- Platform Risk: As with any P2P platform, there is inherent risk related to the platform’s stability and operations.
- Currency Risk: Investments in different currencies may expose investors to exchange rate fluctuations.
Risk Meter: Low/medium
How PeerBerry fits into my investment portfolio: PeerBerry specializes in short-term loans with buyback guarantees, similar to the more well-known Viainvest, but even simpler and more profitable.
6. Indemo
Indemo is a unique regulated platform within the P2P investment arena, becoming a fundamental asset in many European investors’ crowdlending portfolios over time. Indemo allows investments in so-called “discounted debts,” which are transactions created from mortgage loans of large banks where the borrower has defaulted, purchased at a significantly reduced price including the associated real estate asset.
Advantages of investing with Indemo:
- Unique Assets: Access to assets not found on any other market, enhancing portfolio diversification.
- Regulated Company: Fully regulated entity with an intuitive interface and investments starting from just 10 euros.
- Strong Track Record: Attractive historical returns with potential to increase portfolio profitability.
Disadvantages of investing with Indemo:
- Complexity: Understanding and investing in discounted debts can be more complex than traditional P2P loans.
- Market Risk: The real estate market can be volatile, affecting the value and returns of the investments.
- Limited Liquidity: Investments in discounted debts may be less liquid compared to other types of P2P loans, potentially making it harder to withdraw funds quickly.
Risk Meter: Moderate/high
How Indemo fits into my investment portfolio: Indemo has become a fixed component in my portfolio due to its diversification potential, solid structure, and demonstrated historical performance.
7. Fintown
Fintown is a Czech investment platform focused on participating in real estate projects that generate passive rental income. The platform allows investors to participate in rental income projects, offering a product aptly named RENTAL.
Advantages of investing with Fintown:
- Monthly Dividends: Designed for investors who prefer generating monthly dividends from a portfolio of properties.
- Low Minimum Investment: Investments start from just 50 euros per operation.
Disadvantages of investing with Fintown:
- Market Risk: The real estate market can be volatile, potentially affecting rental income and property values.
- Geographic Concentration: Focused primarily on Czech real estate, which may limit geographic diversification.
- Limited Liquidity: Real estate investments can be less liquid compared to other types of P2P loans, potentially making it harder to withdraw funds quickly.
Risk Meter: Moderate/high
How Fintown fits into our investment portfolio: Fintown provides an opportunity for monthly passive income, complementing other longer-term investments in my portfolio. The focus on rental income properties ensures a steady cash flow.
8. Brickstarter
Brickstarter focuses on the niche of tourist apartments, selecting and exploiting the best properties in well-known cities. The platform offers a unique business model that differs from other real estate loans and P2P lending / crowdfunding proposals.
Advantages of investing with Brickstarter:
- Unique Business Model: Investments in tourist properties with rental income and capital gains.
- Low Minimum Investment: Start from just 50 euros per project.
- Liquidity: Investments are liquid thanks to the marketplace implemented in 2020.
Disadvantages of investing with Brickstarter:
- Tourism Dependence: Investments are heavily reliant on the tourism industry, which can be affected by seasonal fluctuations and economic downturns.
- Regulatory Risk: Changes in regulations affecting short-term rentals and tourist properties can impact profitability.
- Market Volatility: Real estate markets can be volatile, potentially affecting property values and rental income.
Risk Meter: High
How Brickstarter fits into my investment portfolio: Brickstarter is an excellent complement to my real estate crowdfunding investment portfolio, providing income from rentals and capital gains from property sales.
What is P2P Lending?
Peer-to-peer lending, also known as P2P or Crowdlending, is a method of money lending that involves two individuals directly, without the need for intermediaries (such as a traditional bank). Crowdlending platforms are therefore very much in vogue.
Through Crowdlending platforms, individuals with the capacity and desire to invest are connected with businesses seeking financing.
Businesses receive small sums of money from various lenders, who typically divide the amount they wish to invest across multiple businesses. Hence, the name of this type of financing: Crowdlending, or literally, “lending by the crowd”, and Peer-toPeer Lending is loans peer-to-peer meaning one to one.
Crowdlending is an increasingly popular option. In July 2020, the volume of Crowdlending operations reached 189.37 million euros, according to the most recent studies.
The launch of Zopa in 2005 is considered the birth of this financing modality, after which many other platforms proliferated. Additionally, the 2008 financial crisis gave a boost to Crowdlending, as many traditional credit entities made it more difficult to obtain credit.
Risks Associated with P2P Lending
- Borrower default
- Platform failure or fraud
- Regulatory changes
Buyback Guarantee and Other Security Measures
- Buyback guarantee: the platform or loan originator buys back the loan if the borrower defaults
- Loan originator’s skin in the game: the loan originator has a financial stake in the loan
- Secondary market: the ability to sell your investment before the loan term ends
Is P2P Lending Legal in Europe?
- Yes, P2P lending is legal in Europe and regulated by various bodies
- Platforms must comply with regulations and obtain necessary licenses
European Deposit Guarantee Scheme
- The European Deposit Guarantee Scheme does not apply to P2P lending
- Investors should understand the risks involved and diversify their portfolio
Even if the uninvested cash is protected up to 20.000€ in some cases, still we cannot consider P2P lending a safe investment and it is wise to invest only small amounts.
Regulatory Bodies
- European Securities and Markets Authority (ESMA)
- Financial Conduct Authority (FCA) in the UK
- National regulatory bodies
What are Loan Originators?
- Loan originators are companies that originate loans and sell them to P2P platforms
- Loan originators are responsible for credit assessment and loan servicing
How Loan Originators Work with P2P Platforms
- Loan originators partner with P2P platforms to offer loans to investors
- P2P platforms handle loan servicing and investor communication
Secondary Market Opportunities
Some platforms offer a secondary market.
What is a Secondary Market?
- A secondary market is a platform that allows investors to sell their investments before the loan term ends
- Secondary markets provide liquidity and flexibility for investors
How to Use the Secondary Market for P2P Lending
- Browse available loans on the secondary market
- Choose which loans to buy or sell based on creditworthiness and interest rate
- Use the secondary market to diversify your portfolio or exit your investment early
Final verdict
This article reviewed my personal best P2P lending platforms in Europe. The priority has been to select reliable platforms, leaders in their sector, offering attractive returns and features.
In my opinion, Mintos is the best peer to peer lending platform in Europe. My second best is Debitum Network.
