I call myself a microbanker, it is also my username. I am an investor in peer-to-peer (P2P) lending platforms. I have also over 20 years of experience in stock market and own higher education in banking. Currently, the best opportunities are in P2P lending, I hope to get at least a 12% return in a year. At the same time stocks, real estate and bonds are all overvalued.
P2P lending does not need a big starting capital. Most platforms allow you to invest 10 euros in one loan and there are almost no fees. Let's say you have 1000 euros to invest, so you can give 100 loans and your risk is well balanced. If you lend your 1000 euros to one person then the risk is huge.
P2P lending has grown a lot in recent years. One reason is that bank deposits rates are almost zero. People are lending money to each other, they leave out the bank. My focus is Estonian and Latvian lending platforms because the return is higher here. You cannot get the same yield in LendingClub or Zopa, which are well known. I am on more than 10 platforms and I am ready to share my experience.
This topic is very wide because there are many platforms, different loans, many ways how to reduce risk. Some platforms have a secondary market, so you have an opportunity to sell your investments if you need the money. I am interested in loans that are backed by real estate, car, buyback or payment guarantee. I would like to know, are you interested in this topic? Please upvote and comment what you would like to read!
Disclaimer: I am an investor in many platforms, but I am not an employee or an owner of any platform. As I understand, I can not share any referral links.
Here is a screenshot from one of my account: