Table of contents
The risk of P2P lending is that you will lose your entire investment. This risk can materialize if the platform, lender, or borrower fails to repay the loan. You can mitigate the risk by conducting due diligence and monitoring the performance of your portfolio.
The safest P2P lending platforms are regulated crowdlending platforms that offer mortgage-backed investments.
Specific segments of the P2P lending industry are regulated nationally. Crowdlending platforms are supposed to be regulated under the ESCP license issued by the European Union until the end of 2022. P2P lending marketplaces are not regulated on the European level.