What are the best and worst P2P loans right now? Edition #17



Our pick of the best P2P loans

This post is part of a regular series where we highlight what we think are some of the best P2P loans available in the UK and Europe. These loans may have recently sold out. If they have, it is likely that very similar opportunities are available on each platform. Our goal is to highlight the types of opportunities that have been available on various platforms recently, and which types of loans offer the best (and worst) risk versus reward right now.


Why we like it


Interest rate: 9% 
Term: 35 months
CAR Loan
LTV: 73%

Interest rates available on Mintos have been falling. That’s because P2P investors are becoming more confident in the outlook, and demand for loans has been increasing. That makes it harder than ever to find interesting loans. We think this loan from Eleving (formerly Mogo) is still attractive. The term is not too long, and the rate of 9% feels reasonable because Eleving is one of the better loan originators active on Mintos. In addition, the borrower has already made 2 years of payments successfully, and the loan is also secured on a car. 

Loan 45314096-01

Interest rate: 8%
Term: 24 Months
1st charge mortgage
LTV: 65%

This loan comes from Moncera. Moncera has been featured on this site several times in the past. It offers loans from subsidiaries of the Placet Group. Moncera has become so successful that it has had to cut the rates it pays to investors on personal loans as there has been too much demand. It has recently started to also offer secured loans. The reason this is interesting to us is that the interest rates are similar to what can be found on other sites such as EstateGuru, but these loans also benefit from a 60 day buyback guarantee from Placet Group as additional security. Placet Group have been consistently profitable and has over €24 million of shareholders equity. We think that makes these types of loans some of the lowest risk of all available in European P2P right now in our view.

Moncera logo small

Project 18535960

Interest rate: 10.6%
Term: 37 months
asset backed loan
LTV: 69%

This is a good example of the loans that are available on P2P site HeavyFinance. It sold out very quickly but we have included it in this list as similar loans are also often available. The loan is to a farmer that is being used to help fund the purchase of fertilisers and seeds. It is secured against one of the farmer’s tractors, and also a flat in an apartment building. The farmer also owns 160 hectares of land and other assets. The farm is profitable and is receiving subsidies from the Lithuanian government. The interest rate paid to investors varies based on how much is invested – from 10.6% up to 12.7%. We like the diversification that sites such as HeavyFinance offer as there is limited exposure to events such as Covid-19 or falls in property prices.

Interest rate: 11%
Term: 24 Months
1st charge mortgage
LTV: 56% 
Alūksnes, Latvia

LendSecured is another P2P site that is focusing on lending to European farmers. The number of loans listed on the site has been growing. We think loans like this one are very simple and offer a good return relative to the risk. The loan is to a cattle farmer who needs to purchase some machinery. The loan is secured on 2 parcels of agricultural land. There is currently strong demand for these types of land parcels in Latvia.  The LTV of this loan is 56%. We think that an 11% return is more than satisfactory for the risk on this loan. If you are interested in trying out some new P2P sites, LendSecured is definitely worth considering.

LendSecured logo

Loan 211111-493850

Interest rate: 12.5%
Term: 6 Months
Personal Loan

Robocash is a lending group based in Russia that operates in several other countries including Spain, Vietnam and the Philippines. Its audited financial results have been extremely impressive over the last two years, and it has announced a profit of $16m for the first half of 2021.  The amount of loans purchased by P2P investors has been growing very strongly due to the strength of the Robocash financial results and the attractive interest rates available on the site. Our current favourite are the Philippines loans, where investors can earn 12.5% on installment loans repaid over a 6 month period. We would not be surprised if the continued strong demand from investors leads to lower rates in the future, so it may best to take advantage of the high rates while they are available.

Robo.cash logo

Una Pay loans

Returns: 6.25%++ 
Term: 60 Months
1st charge mortgage

InRento is a fairly new crowd funding site dedicated to ‘buy to let’ opportunities. The founder of the site is well known, as he has also founded the well known site EvoEstate. This loan is secured against a very high quality property located in a central area of Vilnius in Lithuania. The borrower is a company that rents properties using sites such as Airbnb. That should generate a lot of income for them, and we can see that there are a large number of very good reviews for similar properties the borrower has rented on Airbnb. This is why we feel fairly relaxed about the 80% LTV which is a little higher than normal. Investors will receive a monthly payments based on a yield of 6.25-6.75% (depending on the amount invested). In addition the borrower will pay investors at least 1.5% pa, which will be paid either at maturity in 5 years time, or if the property is sold earlier. This type of investment is good for people who are looking to earn a steady return over a long period of time, without any hassle. InRento also offers a secondary market, so there is a possibility to exit prior to the end of the 5 year period if needed.

Inrento logo x small

Project 359

Interest rate: 8%
LTV: 59%
Term: 12 months
1st charge mortgage 
Weißenfels, GERMANY

It has been a while since we saw a loan on EstateGuru that we really liked. Too many loans have either been secured on poor quality buildings, or are being used to fund complicated development projects. We’ve been particularly keen to identify attractive new loans located in Germany, as many of our readers are based there. We think that this loan is interesting. Firstly it is a simple bridge loan, which we feel is lower risk than a development loan. The collateral building is good quality, centrally located and is fully let. The LTV is only 59%, and the valuation seems reasonable to us based on the amount of rent it generates. 

EstateGuru logo

Loan 2562

And here are two loans we DON’T like….

Interest rate: 7.44%
Term: 18 months
development loan
1st Charge (Tier 3)
LTV: 70%
London, UK

We are fans of British P2P site Kuflink but we are very selective of which loans to choose. This loan is a good example of the types of loans we don’t like. It’s a large development loan that has been split into 3 risk tiers. This loan is the riskiest tier – yet the interest rate is only 0.64% higher than the lowest risk tier. We also have some doubts about the reliability of the valuation. It is being valued as a development site, which requires the valuer to make a large number of assumptions (such as how much the new development can be sold for, and how much it will cost to construct) to derive a value. Small changes to assumptions can generate big movements in the calculated value of the development site. Finally, the development is located in one of the less desirable parts of London and is not an obvious area to undertake a development like this. Overall, a return of 7.4% is nowhere high enough for the level of risk involved, in our view.

Kuflink logo

Drayton Green Road

Interest rate: 2%
Term: 12 months
partial guarantee
Country: france

October is another P2P site that focuses on lending to small and mid sized businesses. They have been offering many loans like this to investors that form part of the French government’s guarantee program for Covid impacted businesses. The government will guarantee up to 90% of the principal (and none of the interest). The loan is to a record company that only has 1 employee and €555 of share capital. The website for the company only has a landing page, and no contact information. It says that the copyright is ‘from 2006 to 2020’ but the company was only incorporated in 2018…. It seems to us that this ‘company’ has a risk of default, and October seems to agree, assigning a risk grade of C- (its lowest). We cannot understand why anyone would invest in a loan like this for a 2% yield, unless they didn’t properly read the terms of the government guarantee. And the ‘smart money’ loan buyers seem to agree – October discloses that unlike other projects, institutional investors and the management of October are not participating in these types of loans.

October P2P logo

Kol loan

If you are interested in any of the loans above, please make sure to read all the information provided by each investment site and make sure that they are suitable for you. While we aim to highlight potentially interesting opportunities, you must perform your own assessment of the risks and make your own independent decision on whether to invest, and whether these, or similar loans offered on each site are suitable for your investment objectives. All information is supplied in good faith based on information which we believe, but do not guarantee, to be accurate or complete; we are not responsible for errors or omissions contained therein. Explore P2P is not a financial advisor and no content can be or should be considered to constitute financial advice. All content provided is for informational purposes only.

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