What is crowdlending?
I have in this text shared affiliate link. Some links give a bonus to new investors, I hope it ´s clear that I would never recommend anything I cannot vouch for!
Peer to peer, p2p or Crowdlending, is an opportunity to lend money to individuals or businesses through an online platform. This is normally done by a private company that runs the platform and collects loans from lending company's. This way they bypass the normal banks and financial institutions.
Instead of just one bank making a loan, investors get together to finance it in other words p2p platforms connect borrowers to lenders. All in all, they operate at a rather cheap margin if you compare them to traditional banks. P2p platforms offer a lot higher returns on investments compared to financial institutions and are in my perspective addition to real estate, stocks or bonds
There has been some talk about crowdlending is the funding of Consumer loans (Quick loans), but I think that's a huge misunderstanding.
Many say, for example, that they will not use it, and look down on people who invest in it.
Crowdlending is really many different types of loans, and the lending companies are very different. The vast majority of these types of loans are not instantly Consumer loans and you can actually one can protect yourself against them.
Grupeer is one of the platforms that doesn't finance any personal loans at all, and of course also no Consumer loans.
The platform finances three types of lending: Business loan, mortgage loan and development projects. So loans are granted to companies, mortgages, and property development projects.
Right now, for example, there is a loan for a small real estate company from Latvia an investment of 10 months, The Company is purchasing debt portfolios with mortgage loans. The loan has an interest rate of 12%.
When the apartments are sold, there is a larger company that has a huge surplus which has become slightly smaller due to loans via Grupeer.
At PeerBerry there are many different loan providers (loan originators), and here you have to read in and read about the individual, to see what they offer loans for.
Here is a link to the FAQ where you have to click on loan originators and then you can see a short text about what they offer and stand for.
Unfortunately, there is no option in the auto loan to differentiate on loan types, but you can choose to set loan providers active or non-active.
If you want to invest through Envestio it is very easy to see what you are investing in since there is no auto investor. They have no personal loans on the platform, all the loans I have seen are Companies they have a category called "other", so maybe in the future.
The company loans are clearly described in what type of business they are involved with. This could be companies making Biomass fuel-Factoring, power planet, crypto mining, timber production, recycling materials, Production of wood pallets, Urban mining, Fruits wholesale, Fish processing, and Aluminium production. Read my full review off Envestio here.
The big and oldest platform for crowdlending Mintos has really many loan providers, and again one has to go in and read about them individually to see exactly what type of lending they are offering.
However, when you bid on loans manually and with the auto investor, it is easy to regulate which loan types you want to invest in. For example, you can sort all personal loans from and also short term loan, which quick loans are called in English. So it is super easy to avoid if you want to avoid investing in quick loans. Another good thing about Mintos is that they state "Borrower APR", which is an expression of the interest the borrower pays including various costs. Read my full review off Mintos here. I have kept on investing my money with Mintos over the past two years and now it's my biggest, investment in crowdlending. I have also tested withdrawing my money from Mintos and it worked flawlessly.
I've reviewed all the platforms described here. Crowd learning can be in a quick loan type, but it is only to a very small extent, and you can easily avoid that type of lending.
I have in this text shared affiliate link. Some links give a bonus to new investors, I hope it ´s clear that I would never recommend anything I cannot vouch for