Create a new passive income! Investing in online peer-to-peer loans

With interest rates going down in various bank investment plans during the last few years, people have been looking around to find other ways of earning money. One of these new ways is to lend money online to various borrowers. What is called peer-to-peer lending?

You can find online more and more platforms to lend money to random people or companies in order to earn interest.
These platforms connect and regroup borrowers & lenders cutting intermediaries. Of course, this investment method does not escape the general rule: the higher the risk, the higher the pay. Nonetheless, the average interest rate going in your pocket is in general higher than what you could find elsewhere in a secured investment.

We have listed for you few websites that allow you to lend money:

Prosper (
“America’s first marketplace platform”, Prosper has been created in 2005. It allows borrowers to make small loans ranging from $2,000 and $35,000 and investors to start lending at $25. This minimum investment helps you diversify your portfolio.

Lendingclub (
Started in 2007, LendingClub is connecting investors to individuals and small businesses. They offer many options to the investors so that he can quickly diversify his portfolio splitting the risks into many smaller investments. There are 4 borrowers options: personal finance, small businesses, auto refinancing, and patient solution. Investors have options too, they can open an individual account, a retirement plan account as well as a company account, trust account or joint account.

RateSetter (
This platform connects investors to borrowers through an algorithm. On RateSetter the investors first set the interest rate he wants to earn and the duration of the loan, then he is connected to borrowers. In case borrowers do not pay back the loan RateSetter has a special fund to recover funds invested. Since 2010, the platform has gathered nearly 61,000 investors for 430,000 borrowers.

Lendingworks (
Lendingworks is a little younger platform than others. They provide peer-to-peer lending. They offer fewer options than other sites, but their platform seems easy to use. Your investment can also be automatically diversified. They provide security to your investment through what they call “the Shield”: insurance, a reserve fund and diversified portfolios for you.

Zopa (
Founded in 2004, Zopa is the oldest platform we have visited. Zopa helps you invest your money in 2 types of portfolios: Zopa and Zopa Plus. Your investment is divided into £10 mini investments in loans. This platform is very transparent about the fee they take for investors. (
Swiss platform offering a basic service. This platform seems relatively new and formed around a team of experienced professionals coming from the bank sector. They are currently at around 900 loans for 12,000 investors. If you want to invest in the Swiss loan market it could be the newcomer to keep an eye on.

Important aspects to keep in mind:

  1. Your money is at risk and cannot be 100 secured
  2. Did you perfectly understand how much fees the platform is charging?
  3. Is it the right investment for your money? Duration, interest rates, risks…
  4. You might have to pay income taxes on your investment
  5. Do not invest money that you will need before the end of investment duration


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