Here is a quick reference list of the best P2P lending platforms in Europe in September 2023.
I have tested myself most of the ranked P2P platforms and I’ve collected direct information about the rest.
That way, I could find the best Peer-to-Peer Lending websites on the market today based on actual data.
Table of Contents
Here is the list of the best P2P lending platforms in Europe
We can safely say that these are the best P2P lending platforms in Europe today:
|#3||Mintos||9,1%||Yes 🛡||Yes ♻️|
This is the table of the best crowdlending websites for European investors.
There are many lists of best P2P platforms accessible only to US or UK citizens, so this is useful to European investors or international investors with a bank account in Europe.
To access a more complete list to compare peer to peer lending websites that goes beyond the most popular P2P lending platforms you can visit the official compare p2p lending websites table.
To compile this list, I analysed the features of + 30 excellent sites for investing in peer-to-peer loans.
The core of this research is based on dozens of P2P lending security factors, since investing in this way is very profitable but also involves risks.
I am a P2P investor in most of the platforms I mentioned, so I am able to make a fair comparison.
Here we go.
- ✅ It is very old and popular
- ✅ Based in Croatia (out of the Baltic region)
- ✅ It is also generating its own loans
- ✅ Return up to 14%
- Minimum investment: 10€
- Returns: up to 14%
- Languages: 4
- Secondary market: Yes
- Guarantee net: YES
- User experience: Very smooth
- Regulated: No
- ✅ Cashback for new sign-ups: X
Why Estateguru is the best real estate crowdfunding platform in Europe?
✅ It is the biggest in euro for real estate
✅ They publish the outstanding and the full load book
✅ It is one of my best picks⚜️
EstateGuru is a tool for secured property-backed loans.
I am a very satisfied investor and I have zero late loans with >11% yearly return. In my opinion this is one of the best peer to peer lending for real estate (crowdfunding).
Info about Estategugu:
- Minimum investment: €50
- Returns: 10,7% (1% a month)
- Secondary market: YES
- Guarantee net: NO (all loans are property backed)
- User experience: Very good
- Languages: 4
- Regulated: Yes
- ☑️ Bonus for new sign-ups: YES 0,5%
My Tip: I diversify on many loans and prefer “bridge and development loans” backed by a “first rank” mortgage. I avoid German and Finnish loans like plague.
Take action now :
- ✅ It is the biggest P2P in Europe
- ✅ It is the most popular choice
- ✅ 20.000€ investor compensation scheme included
- ⏸ The buyback system is not working as well as before
- Minimum investment: €10
- Returns: from 6% to 15%
- Secondary market: NO
- Guarantee net: YES
- Online experience: Excellent and intuitive. Statistics are clear and easy to read.
- Regulated: Yes
- Languages: 7
IUVO Group ★★★★☆
Why so many investors choose IUVO P2P?
✅ One of the “safest” P2P marketplaces
✅ License by the Estonian FSA
✅ Originators have 30% skin in the game
IUVO is based in Estonia but it has connections (and loans) in Bulgaria.
Bulgarian loans are well known to be good and all originators on IUVO have to hold 30% of the loan amount. This is to fairly share the risk with investors.
Doing so, even if the loans here are “indirect”, the platform can be considered quite safe and reliable (P2P investing is risky anyway).
Info about IUVO:
- Minimum investment: €10
- Returns: 13%
- Secondary market: YES
- Guarantee net: Yes, buyback
- User experience: Cool
- Languages: ENG BUL GER ESP
- Regulated: Yes
- ☑️ Bonus for new sign-ups: X
My Tip: Do not focus on one or two lenders
ALTERNATIVES: Peerberry and Viventor
- ✅ It is big and popular
- ✅ It is connected to a very large lending company
- ✅ Return up to 12,1%
- Minimum investment: 10€
- Returns: from 11.1%
- Languages: 3
- Secondary market: NO
- Guarantee net: YES
- User experience: The sleekest ever.
- Regulated: No
- ✅ Cashback for new sign-ups: 1% bonus
Why Flender is the best option for business loans?
- ✅ It is possibly one of the safest P2P for business loans in Europe (P2P is risky)
- ✅ It is one of my best picks⚜️
Flender is an Irish P2P lending business founded in 2015. It is good for investors that feel too exposed on Latvian/Estonian P2P platforms.
Their success is probably given by their mindset. The aim of Flender is to cooperate with SME instead of squeezing out the maximum profit. Doing business this way they’ve achieved a valuable goal, an extremely low default rate (1,8% late +120 days).
Flender website is smooth and all the data and settings an investor may need are at hand. Secondary market is not available yet, auto-invest (the excellent autoFlend) is easy to setup. Never forget it is geographically limited to one country.
Info about Flender:
- Minimum investment: 50€
- Returns: 10,5%
- Languages: English
- Regulated: Yes
- Cashback for new sign-ups: No
My tip: I avoid “V” class loans as an additional protective measure + I prefer to invest within the first 30 days to maximize the generous bonus
Take action now:
Learn what I think about Flender (review)
Peer-to-peer lending platforms Europe ranking
|Robocash||Go to website||⭐️⭐️⭐️⭐️⭐️||2017||10€|
|EstateGuru||Go to website||⭐️⭐️⭐️⭐️⭐️||2013||50€|
|Mintos||Go to website||⭐️⭐️⭐️⭐️⭐️||2015||10€|
|IUVO||Go to website||⭐️⭐️⭐️⭐️||2016||10€|
|Peerberry||Go to website||⭐️⭐️⭐️⭐️||2017||10€|
|Go to website||⭐️⭐️⭐️||2010||X|
|Viainvest||Go to website||⭐️⭐️⭐️||2016||10€|
LET’S SUM UP
Which is the best P2P?
Is there a best P2P lending for beginners?
Every investor is different, but if I had to choose just a few platforms from this list to guide a friend who is about to start investing in P2P loans, I would say:
- RoboCash is doing well and it is based in Croatia.
- Mintos because it is big, totally automated and diversified.
- Estateguru, because it is automated, reliable and potentially safer (11%)
- Rendity is an excellent Austrian Real Estate Crowdfunding (7,4%)
- IUVO, because it is well run by experienced management and because it is more regulated (11%)
- Peerberry because it is still one of the lergest P2P.
- Flender, because pouring money in the real economy is something everyone should do (10%)
Now that we know which are the best P2P websites in Europe, let’s move on to how to invest.
How to invest in P2P loans now?
Investing in peer to peer lending is simple and accessible.
Requirements to invest:
- Being 18+ years old
- To own a bank account in Europe
You’ll be required to be +18 years old and to own a bank account in Europe. International investors may use a Revolut / Transferwise for the above mentioned tools to deposit, invest and withdraw money.
In many cases it is enough to register, deposit via credit card and start a 1-click investing procedure. No further action is required over time and no difficult questions are asked.
P2P lending minimum investment in Europe is very low (10€ to 100€ on average) and returns can be extremely high.
What I believe is important is to fully understand how it works and what are the risks and the benefits. To balance risk and reward is key. Beside choosing the best peer to peer lending website it can be convenient to adjust the automatic investment settings properly.
Since investing in loans, like every investment, can be risky, it is important to focus on safety and to aim for the safest loans instead of searching for the highest return.
In order to invest in P2P lending the workflow is:
- Choosing the best P2P lending websites
- Deposit the money to invest
- Activate the auto-invest feature
- Cash in or reinvest the interest
How do I start P2P lending?
To start investing in P2P lending I need to:
- pick a P2P lending platform I trust
- register as an investor
- deposit a sum of money
- scroll throug the loans on offer
- activate the autoinvest feature or invest manually
From now on I will:
- receive interest on my invested money
- reinvest all the money I learn by reinvestire it in new loans
How to automate the P2P lending process?
One of the best things about P2P loans investing is that most platforms provide one or more investment automations.
The investor can set the automation with a few clicks (sometimes just one click) and the platform will keep on buying and manage the loans for him.
The biggest benefit beyond the hands-free is that all the money from the interest earned lending money could be automatically reinvested and thus generate compound interest.
The best P2P lending automations are:
How do I protect my money invested in loans?
Investing in loans is a rather new way to invest money. This is why it most investor want to know how safe is P2P lending.
Different peer to peer lending websites offer different levels of protection to the investor.
1. Early exit
In most cases P2P lending platforms allow to sell the loans before the expiry date. Let’s call it “early exit”.
This gives a good level of protection because I am free to leave whenever I want. Unfortunately this applies in reality only in normal market conditions. To sell a loan I need another user ready to buy it and this is not always the case, especially if that loan is late.
2. Buyback guarantee
A very frequent protection given to investors is called “Buy Back Guarantee” (or late loan repurchase).
Marketplace lending like Mintos, IUVO and Peerberry offer this feature to their investors.
How it works?
The problem the buyback policy aim to solve is that some loans are not paid on time.
When I buy a loan and the borrower is late in payments for more than 60 days, the loan originator that issued that loan will have to buy it back and refund me the money I’ve invested.
Beware, it is not the marketplace that promises to buy back your late loans. It is a loan originator duty. So, before trusting this system 100%, it is smart to make sure the loans we pick are offered by a solid lender that will honor the buyback promise.
One of the best ways to invest in peer-to-peer lending is to lower risk through diversification.
Using more P2P platforms to invest will expand to numbers of loans and lenders we have to trust. Doing so we directly lower to risk. If one loan goes late it won’t be a big issue since I will have a thousand more loans that are regularly paying. Same applies to lenders. If one loan originator does not honor the buyback guarantee (yes, it can happen) I will have other 20+ that are doing fine.
Now let’s see the best peer to peer lending websites in detail…
💡 Is peer-to-peer lending a good idea?
If one is aware of the risks involved, investing in peer-to-peer lending can be an excellent way to increase the overall return of a well-structured investment portfolio.
The time horizon of this type of investment should be medium to long, as it is quite normal that some loans will go bad and be recovered over time.
Is peer-to-peer lending legal?
P2P lending loans are an alternative to bank loans nowadays.
Peer to peer lending is legal in most western countries.
Moreover, the majority of the P2P lending websites are regulated in their country of origin.
P2P lending is legal in Europe, UK and US.
Can you get rich from peer-to-peer lending?
Investing in peer-to-peer loans is a fairly easy system to set up and offers something like a passive income.
Some investors claim that P2P lending is the best way to earn money effortlessly.
How much can P2P lending investors earn?
By investing in direct loans, i.e. based on the peer-to-peer concept, you can expect very high returns, up to 10% in Europe.
The overall return is also influenced by the investor ability to choose good loans, reliable borrowers and authoritative platforms.
Is peer-to-peer lending a good way to invest?
Considering that the risk-benefit ratio of this type of investment is generally good, it can be said that P2P lending is a good investment to diversify one’s portfolio.
The risk tolerance of investors in P2P lending is normally very high.
🇬🇧 BEST P2P LENDING WEBSITES in the UK
(mostly for Uk citizens only)
I wish every country could have Ifisa, not only UK.
The United Kingdom is undoubtedly the biggest and most structured market of p2p lending. In the UK, in some cases, it is possible also to request tax breaks for this type of investment. It’s called IFISA (Innovative Finance Individual Savings Accounts) and it allows to investing up to £20,000 per year tax-free (which can be cumulated).
Here is a list of the best peer to peer lending in the UK:
- Funding Circle (UK – DE – USA)
Funding Circle 🇬🇧 (UK only)
The most famous British p2p is now also available in the US.
The first time I heard about p2p was precisely in relation to Funding Circle, and since then I was introduced to a (beautiful) world.
This platform only deals with business loans, that is to say, it gives credit to businesses and it affirms to have 72,453 investors who have lent 2.7 billion pounds, earning 135 million in interests. These are impressive numbers.
Everyone can invest, you just need to be over 18 years old and to be living in the UK.
Info about Funding Circle:
- Minimum investment: £20
- Returns: from 4.8% to 7.5%
- Secondary market: YES
- Guarantee net: NO
- Online experience: Modern website and top user experience. High returns
- Languages: 3
- Uk De USA only
🇩🇪 Best P2P lending platforms in Germany
German investors have access to all the best social lending websites in Europe to invest in loans.
The most popular P2P platform in that area nowadays is Rendity, an Austrian based real estate crowdfunding that is down very well.
Here is the list of the peer-to-peer lending websites in Germany:
Most of these P2P platforms are only in german language and way be only accessible form German investors.
What is P2P lending in Germany?
P2P lending in Germany is a model of investment that is based on crowdfunding to finance personal expenses of borrowers we don’t know personally.
The P2P lending process is automated through loans marketplaces of P2P platforms.
✅ Benefits of P2P lending investing
The main benefit of investing in peer to peer loans is the access to some very high revenue investment with a potentially adequate risk.
The success of peer-to-peer technology started with music file sharing. Napster, eMule (..the slowest one) and then Torrent, then with movies on p2p. Now with p2p sports streaming and p2p payments.
The attention is now all on p2p lending, the one with the loans, and it isn’t difficult to understand why.
Here’s my point of view on p2p lending for those who are investing in Euro (and not only). This is my experience.
The truth? I was skeptical like you.
YES, I really was. Now, after some years, I am careful in loan picking, I recognize the risks involved and I am very happy of the outcome.
Now read what’s important to know in choosing the best P2P.
🗜 What is P2P lending? (in brief)
P2P Lending is a new tool for individual investors to lend money to other people and business.
The operation is rather simple:
- Loans approved by some credit/finance companies are partially or totally offered online.
- Those who wish to invest in loans can do it on the dedicated P2P websites.
- Anonymously, one proceeds to a single purchase of loans, automatically or in bulk with the criteria that one have set up.
The ease and the immediacy of the operation is surprising.
“Social lending” (P2P) for me is a way to create both additional streams of income (and compound interest) with a decent risk/return ratio in a”low-interest era”. Everyone is looking for a ranking of the best crowdlending websites available, so I wrote my definitive answer.
There is mutual interest in P2P lending. Borrowers can get liquidity out of the banking circuit. Lenders get high interests on this debt.
Direct loans between private citizens are enjoying great success.
How old is P2P lending?
The first service of this kind was offered by Zopa already in 2005 in the UK, and it’s still in operation.
🚫 SOCIAL LENDING IS NOT FOR EVERYONE
This is true for two reasons:
- One is skepticism. Most people just don’t trust new financial tools because they’ve never heard of it. It is easier to head to the bank and delegate everything without even understand what do they do with our money, right? (It took me months to trust and start investing in P2P loans)
- Another reason is greed. When people are asked to choose between 8% and 35% yield many get wrong and go for the second. It would be ok, but very often the loans that offer the highest returns are also the loans with the worst performances in terms of punctuality.
I find it safer to balance risk/reward in P2P lending.
Things to know about peer-to-peer lending in 2021
There is an increasing demand for the “safest” class of loans from the smarter investors. It is important to make the system select for us the best and safest loans for us when possible.
After all, the returns are definitely high compared to what’s on offer on the market today.
This is an age of low interest rates and low inflation, it is hard to find good deals around.
This blog is not a recommendation to invest in any of these tools.
It is just one more point of view from someone who is invested from some time already.
It may inspire those who are just starting out, and those who want to take it up a notch but have no time for studying the mechanisms.
Am I protected by the European deposit guarantee scheme?
Keep in mind that the loans aren’t always guaranteed and, even if they are, some limits and conditions apply. It is appropriate to choose loans with reasonable ratings.
Is investing in p2p loans “immediate” like buying stocks?
The investment process isn’t always as immediate as you’d expect. Sometimes you may have to wait some hours/days before being able to see the assigned capital. Setting up very restrictive parameters to the loans in automatic wallets is generally the cause of the slowness of the process.
In my experience Fixura was the slowest to buy my loans while Mintos is still the fastest (invest & access).
The default risk of a platform or of a loans originator is never to be excluded. There haven’t been sensational cases in Europe a part from Lendy in the UK, but for example, there has been one in China. Generally, the finance of the P2P websites are well separated from the users’ one’s so, even in case of a default, happy ending solutions are still possible.
The European bail-in system, that offers a guarantee to bank deposits under 100k Euro, isn’t obviously extended to any investment included p2p lending loans.
I don’t invest all my capital in social lending and I distribute it on more than one tool or at least in two different countries.
Social lending is regimented and in some cases authorized. Rules are clear and they are dictated by organizations in each Country.
All the listed websites are able to provide detailed information about the service they offer and they are usually extremely transparent, precisely to get over the diffidence of future users.
When I see something fishy I run away and I make sure my readers get what’s important to know in real time.
It is good to keep in mind that the platforms that offer many guarantees and advantageous taxation programmes will normally give lower returns. Instead, the most aggressive solutions, together with crazy returns, can also provide me with late or defaulted loans.
Let’s remember that high returns are often linked to adequate risks.
I look for the “sweet spot” in P2P Lending, I invest myself and I share what I learn by doing.
Video best P2P lending platform on Youtube
Here is the best peer to peer lending video to explain P2P lending just to anyone:
Actual Social Lending situation in Europe
P2P lending is gaining populatity among European investors.
More regulations ar coming in the next years following a process that is already in place in th US.
Uk has the biggest market for P2P but unfortunately, their tools are most suitable for UK investors.
Other big and often reliable p2p platforms are in the Baltic countries.
Their stories are more recent, but they are raising millions of euros in record time. Perhaps they are solving the problem of those individuals and companies who, often unfairly, cannot obtain credit in the traditional way.
For those who can speak German, there are also AuxMoney, Smava and Zencap.
Is P2P lending a good idea?
P2P lending investing is a good idea only for inversore that are willing to face high risk in search for very high returns. P2P loans are unsecured, so the possibility of camping across borrowers that don’t pay is high.
Moreover, P2P loans investing is quite an illiquid investment.
P2P lending forecast
It is easy to imagine that more and more investors will trust p2p lending as a high-yield investment tool.
I imagine that when shared European rules finally arrive, the general security of investment may increase but returns will fall.
🚦How ethical is P2P lending?
Doubts of the ethicality of some loan originators.
Some originators in some countries charge borrowers with very high rates. This happens for a series of reasons that aren’t always caused by some not-to-ethical practices.
On one hand, some of these individuals/ businesses wouldn’t find easily credit elsewhere.
On the other hand, a short loan of a small amount of money is obviously subject to relevant fixed costs (in relation to the amount) that make the total cost of the loan go way up.
It is possible to get informed before investing to ensure that the rates applied to borrowers are sustainable.
Example of ethical P2P
There are clear and transparent ways to invest ethically using new technologies.
The most brilliant example of the application of blockchain to the world of loan investment is undoubtedly EthicHub.
Indeed, this company manages to connect small farmers from Central America to investors all over the planet.
The result is a positive social impact but also returns of around 9% for those who invest.
The default rate at the moment is low, only 1.2%.
🌈 No-profit P2P Lending
Ethical P2P lending is a must. The feeling I get when I have a loan repaid (no interests) from someone far in the world is priceless! I feel I am actively helping someone with a specific project.
On Kiva, we can finally lend without interests to people with small projects in developing countries. I’ve done it and the feeling of helping people is amazing, the website is awesome and it is even possible to gift a 25$ coupon to whoever we want to.
You don’t make a profit on Kiva, but you have the certainty to be doing some good, and that’s wonderful. I think it’s an extraordinary gift idea.
Similarly to Kiva, we have lendahand.com, Zidisha.org , Trine.com (profit 7%), Fundeen.com and BabyLoan.org
🔑 How to compare P2P Lending platforms?
I’ve prepared my own P2P lending comparison table a time-saving and up to date tool.
The majority of the instruments mentioned has been tested in depth and for long long time.
Returns higher than 15% are often only hypothetical.
Short list of the best Peer to Peer lending in Europe
Here is the definitive list of the best P2P lending platforms for European investors 2023:
- Robocash 14% – Based in Croatia – Solid performance
- Estateguru 11% – All projects are property backed
- Mintos 9% – The most popular – The most diversified
- IUVO 11% – Old and reliable
- Peerberry 12% – Supported by solid loan groups
- Flender 10% – The best P2P for business loans – Small but growing
- Twino 11% – One of the oldest P2P tools
- EVO estate 9% – A small real estate crowdfunding
- Bondora 4% – One of the oldest P2P – Yields are lower
- Crowdestate 11% – One of the oldest real estate crowdfunding
- Rendity 7,4% – Excellent austrian platform
✅ Final considerations and best P2P lending websites for investors
In my opinion Mintos is the most accessible to anyone and it is easy to start with (open to international + non-resident investors).
They both have a 1-click investing automation.
- EstateGuru is my pick to invest in property-backed loans (12,24%)⭐️
- Mintos is also suitable for large P2P investors
- Peerberry is doing very well and it has founded more that 1M euros
- IUVO-Group is a great alternative (or supplement) to Mintos.
- Crowdestate is fast growing and offers high returns (up to 17% and proportional risk)
- Lendix/October is not performing well anymore. On Lendix is more complex evaluating the risk
Sometimes there are P2P cash-back campaigns available for new subscribers. I myself took advantage of those campaigns but the bonus is never my main reason to invest.
As you can see there is not an absolute best peer-to-peer lending platform in Europe. What is possible is to pick 2 or 3 of the most established ones to start with the root foot.
Now it is your turn!
Which is the best peer-to-peer lending for you?
Write in the comments below your experience with the best P2P lending platforms in Europe.
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Mintos is a very popular choice among the P2P Lending sites. It is considered the best P2P platform for investors in Europe.
Learn more about Mintos.
P2P investing is a risky practice, so it is better not to seek for the maximum return. It is safer to aim to a balanced loans portfolio.
Diversification on the best few platforms may be a good idea to protect the invested capital.
The risk/reward balance may be very good in some cases.
It is hard to say. Some borrowers are subject to very high fees but it’s not always the case.
Lately I have spotted a few ethical P2Ps.
Per to peer lending can be a good way to make some extra money. The high returns often bring a fair share of risk.
P2P Lending is a risky business but most investors accept to allocate a small part of their portfolio in order to benefit from the high interest payed on the lended capital.
Investire in P2P lending is not risk free.
The main risk with P2P lending investing are lending company, lending marketplace and borrower defaulting. Investing throughh transparent P2P websites can reduce these risks.
According to authoritative research by BusinessToday investing in P2P lending offers hypothetical returns of around 14% per annum.
It is possible to make money from P2P lending but it is also important to be aware of the risk involved. The chances of losing the invested capital are real.
The largest P2P lending platform in Europe is by far Mintos but the largest P2P website in the world is Lending Club.
Statistics say that P2P lending is still a good way to make money. A solid P2P lending portfolio can be a good source of passive income.
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