I started investing actively in P2P Lending platforms on May of 2018.
If you bear in mind the hectic pace at which everything is constantly evolving on the internet, you might say I am already a “veteran” on the subject.
(I’m kidding – I’m not!)
P2P Lending (Peer to Peer Lending) has become, almost instantly, one of the most interesting ways of investing money for me.
It offers high interest rates (which go along with the high risk involved – obviously) while, at the same time, demands little administration.
P2P Lending, briefly, is when someone (lender) is borrowing money directly to other people or businesses (borrowers) through an intermediate platform that acts as a regulator.
The massive growth of Financial Technology (FinTech) in the recent years has given an incredible boost to P2P Lending which is attracting more and more investors year by year.
If you are a beginner in this, I would recommend reading the following introductory articles prior to this one:
- What is P2P Lending and How it Started
- P2P Lending Risk Analysis
- My Mintos P2P Lending Platform Review
Ok, now. Let’s go back on our topic.
After 1.5 years in the “field”, I had the idea to start a Project (in the footsteps of many other bloggers out there) in which I will record the monthly interest rates and the yield of my investments of each platform.
I am not, by any means, a professional investment consultant and the following are just personal “experiments”.
Keep in mind that, investment = risk!
What is the MoneyMinority P2P Monthly Income Project?
Starting in December of 2019, I will publish a monthly report in which I am going to depict the results and the performance of each platform I invest in.
My goal is to track the overall returns of my P2P Lending Investment Portfolio and, at the same time, the performance of each P2P platform individually.
With the help of tables and charts I will demonstrate the monthly interest yields I receive as well as the average interest rate of each platform (and overal) per month.
What do you aim with the MoneyMinority P2P Monthly Income Project?
The thing I aim for with this long-term project is, on the one hand, to keep a more thorough track of my P2P Lending returns and, on the other hand, to set an example (to avoid or imitate) for others who are thinking of taking their first steps in the field.
Monthly tracking will help me better allocate my investment funds between the different platforms in order to ensure consistently better returns.
Also, this project will be a hands-on example for those of you considering investing money on P2P Lending as you will have tangible proofs and results of my own investments.
Finally, the project will be fully transparent when it comes to the performance and the performance of each platform.
Which P2P platforms will I invest in:
Before deciding to start with this project I was already an active investor on Mintos and Grupeer.
Generally speaking, I am pretty content with the performance of both of them (having some minor complaints – of course)
I have also tried investing on Twino for some time without any success.
I withdrew my funds almost instantly since it gave me the impression that it was under-performing (few loans which were constantly appearing and disappearing etc).
The P2P platforms I’m choosing to invest my funds from 01.12.2019 are the following:
- Mintos Platform | Mini Review
- Grupeer Platform | Mini Review
- EstateGuru Platform | Mini Review
- FastInvest Platform | Mini Review
- CrowdEstate Platform | Mini Review
- PeerBerry Platform | Mini Review
Mintos Platform | 1.500€
Initial Investment: 1.500€
Mintos is the largest and most famous P2P platform in Europe at the moment.
Launched in January 2015 from Latvia, currently has more than 200,000 active investors from 72 different countries.
Mintos offers loans which are 95% covered by the Buyback Guarantee, the minimum amount to invest/participate in each loan is 10€ and there is no account creation or management fee.
Last but not least, the platform promises an average annual interest rate of 11.89%.
As I mentioned above, I have been an active investor on Mintos platform since May 2018 and, so far, I have not encountered any significant problems worth mentioning.
You can always take a look at my mini review of the platform after the 10 first months of active investing:
My personal first 10-month experience on Mintos platform>
If you create your account using the link below you will get an 1% cashback bonus on all your investments for the first 90 days!
Grupeer Platform | 500€
Initial Investment: 500€
Grupeer launched on October 2016 in Riga, Latvia and has currently more than 19,000 active investors from 89 countries.
(As you understand, Baltic countries are strong on P2P Lending entrepreneurism)
Grupeer’s operating model is similar to that of Mintos but its size is clearly much smaller.
Grupeer offers business and project development loans 100% covered by Buyback Guarantee.
The platform promises an average annual return of 13.25% (higher than that of Mintos), no account creation and management fees and a minimum loan participation/investment capital of 10€.
As I mentioned above, I’ve been an active investor in Grupeer’s platform since September 2018 and, with an exception of some delays when it came to withdrawing my money, I haven’t encountered any problems.
For the purposes of this project I will not show any past interest rate since my starting point will be 01.12.2019.
EstateGuru Platform | 500€
Initial Investment: 500€
EstateGuru is a Real Estate Crowdfunding Investment Platform from Esthonia that was founded in 2014.
It offers access to Short-term loans, which may not be covered by a Buyback Guarantee Scheme, but instead, they are secured by the real estate property itself.
The platform promises an average annual interest of 12%, zero account creation & management fees and a minimum loan participation/investment capital of € 50.
Counting more than 34,000 active investors from 106 different countries and invested capital of more than € 160,000,000, EstateGuru is self-proclaimed as the “leading European marketplace for property-backed loans”.
I have already created an account with EstateGuru in the past but did not proceed with any investments.
The reasons why I chose to include EstateGuru in the Monthly P2P Lending Income Project are 2:
- I want to include a P2P platform that has to do with Real Estate backed-up loans.
- The platform is highly transparent when it comes to its operation and finances while providing a ton of details on every loan available.
I am starting with an initial capital of € 500.
Fast Invest Platform | 300€
Initial Investment: 300€
FastInvest is a P2P Lending platform with its headquarters in the U.K. (but originated from Latvia) that was founded in 2015.
They provide access to consumer loans that are covered by a 100% Buyback Guarantee.
(A pretty different Buyback Guarantee that the ones we have encountered before – I will explain).
The average annual interest rate that FastInvest promises is 14%, it doesn’t charge any administration or account creation fees and sets a minimum loan investment/participation capital of € 1 (!).
FastInvest reports that it has over 30,000 active users from 55 different countries with invested funds reaching a sum of € 13,000,000.
Some of the platform’s highlights are the high interest rates it offers that go along with a particularly interesting BuyBack Scheme which promises to repay (by FastInvest itself and not by the loan originator) any installment delayed by more than 3 (!) Days.
This is very different than the market-stadard BuyBack Schemes which usually repay installments that are delayed after 30, 60 or even 90 days.
One main con of FastInvest is that they are a little bit secretive when it comes to their company’s inside information.
Up until recently, even the names of the Loan Originators they were working with were kept secret (they have now announced one of them).
I have mixed feelings about this platform.
I am going to include it in the project, quite conservatively though.
FastInvest will participate in the Monthly P2P Lending Income Project with an initial capital of € 300.
Crowd Estate Platform | 200€
Initial Investment: 500€
CrowdEstate is a Real Estate Crowdfunding Investment Platform that was founded in 2014 in the country of Esthonia.
The platform offers potential investors with the following 3 different loan types:
- Real Estate Development Projects
- Corporate Finance
- Mortgage Loans
The average anual interest rate that CrowdEstate promises is 17,69%, it doesn’t require any account creation or managements fees and has a minimum loan participation/investment capital of 100€.
CrowdEstate has more than 40.000 active investors who have invested a sum of capital bigger than 80.000.000€ in more than 200 real estate projects.
Apart from EstateGuru, I would like to add a second Real Estate Crowdfunding platform in my portfolio so I can have a benchmark.
My initial investment capital on CrowdEstate is 200€.
Peer Berry Platform | 200€
Initial Investment: 200€
PeerBerry is a, relatively, new P2P Lending platform from Latvia that was founded in 2017 and is a part of Aventus Group.
It offers access to consumer loans in Euro that are 100% covered by the Buyback Guarantee (60 days delay).
The average annual interest rate promised by PeerBerry reaches 11.54%, it doesn’t charge any administration or account creation fees and requires a a minimum investment capital of € 10 per loan.
PeerBerry has more than 15.000 active investors at the moment and has distributed more 1.000.000 euros as interest.
Let’s find out how a capital of 200€ will perform through the months.
Monthly Income Reports:
- December 2019 – P2P Income Report
- January 2020 – Income Report (Coming Soon…)
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