Explore our blog articles to learn how to increase your income and save money ⏩ Online brokers ⏩ Debit Cards ⏩ Crypto wallets.

Blog | Personal Finance Guides & Reviews

Increase your wealth with insights from the finance world. 

Blog 

Esketit

Peerberry

InRento

Crowdpear

Robocash

Fintown

Income

Lande

YouHodler

Capitalia

Heavy Finance

Profitus

Ledn

Yield App

Afranga

Mintos

Bondora

Swaper

EvenFi

Crowdestate

CrowdedHero

Lonvest

Debitum

GoParity

Twino

Iuvo Group

Bridgefund

Brickstarter

EstateGuru

Neo Finance

Nordstreet

Civislend

Bondster

Viainvest

Bullride

Bulkestate

Crypto

Nibble

Crowdestor

Lendermarket

Reinvest24

Max Crowdfund

Coinrabbit

Monefit

Wisefund

Viventor

MyConstant

Nexo

Celsius

DoFinance

Haru Invest

Rendity


Grupeer

Fast Invest

Envestio

P2P Lending Returns

<article>
<h2>5 Strategies to Increase Your Returns from P2P Lending</h2>
<p>The returns from <a href="https://p2pempire.com/en/p2p-lending">P2P lending</a> have decreased in the last couple of months. This means that you, as an investor, will earn less interest on your investments.</p>
<p>Some investors might even reevaluate whether the offered return is worth the risk in the current economic environment.</p>
<p>In this post, we will look at the reasons why the returns from P2P lending have decreased in Europe and how you can increase your returns with some advanced investment strategies.</p>
<center>
<div class="video"><iframe src="https://www.youtube.com/embed/Ho6Gkgrprms" frameborder="0"></iframe></div>
</center>
<h2>Current returns from P2P lending</h2>
<p>The offered returns on crowdfunding platforms such as <a href="https://p2pempire.com/en/review/estateguru">EstateGuru</a> or <a href="https://p2pempire.com/en/review/inrento">InRento</a> range from 6% to 10% per year. Even P2P marketplaces such as Mintos and <a href="https://p2pempire.com/en/review/peerberry">PeerBerry</a> have lowered the offered returns for investors.</p>
<p>PeerBerry is currently listing loans with an average return between 8% and 11% per year, which is almost 3% lower than just a few months ago.</p>
<p>The main reason why the returns from peer-to-peer lending have decreased is that many established and profitable lending companies now have access to cheaper funding sources.</p>
<p>Loan originators, with a proven business model, can now finance their loan book through bonds, institutional investors, or even from their own balance sheet.</p>
<p>Another reason for the drop in interest rates is the higher demand for investment opportunities from retail investors.</p>
<p>P2P lending is easily accessible for most European residents, as anyone can start investing in loans and earn attractive returns from just &euro;10. The entry barrier is therefore low.</p>
<p><strong>Many investors are now asking themselves whether the currently offered return is worth the risk associated with P2P lending. </strong></p>
<p>We would argue that this depends on your availability to assess risk and evaluate lending companies.</p>
<p>Generally speaking, platforms operating for more than five years without the breach of obligations towards investors are &ldquo;safer&rdquo; to use for most investors.</p>
<p>Every investor should know that the rates are directly related to the risk of a particular investment.</p>
<p>If you believe that the current offered rates from peer-to-peer lending are too low, you might want to consider some of the advanced high-yielding strategies that might increase your returns up to 21% per year.</p>
<div class="alert-box">
<h3>Attention</h3>
<p>The following strategies are suitable for experienced investors with a solid knowledge of how P2P lending works. If you are just starting out with P2P lending, we suggest gaining some experience first before experimenting with high-yielding investment strategies. Keep in mind that the platform risk on less-known platforms might be higher than on some of the higher-rated platforms here on P2P Empire. Potentially higher returns are always connected with higher risks.</p>
</div>
<h2>How to Get the Best Returns from P2P Lending</h2>
<p>In the following section, we will introduce five high-yielding strategies that will help you to increase your returns in the current market environment.</p>
<h3>Lender Picking</h3>
<p>Lender picking is a process whereby you research and invest in individual lending companies. Your primary goal is not to focus too much on the P2P lending platform you use but on the assets you invest in.</p>
<p>Specific lenders in emerging markets or on newly established platforms offer higher rates as they want to attract more investors.</p>
<img class="lazy" src="https://p2pgallery.s3.eu-central-1.amazonaws.com/p2p-lending-returns4.webp" border="0" alt="peer-to-peer lending returns" width="auto" height="auto" loading="lazy" data-src="https://p2pgallery.s3.eu-central-1.amazonaws.com/p2p-lending-returns4.webp" />
<p>In the table above, you can see the current highest offered rates for investment in loans in Euro.</p>
<p>As you can see, higher rates are being offered on less mainstream platforms in emerging markets like South Africa, Indonesia, Spain, Poland, or Jordan.</p>
<p>Before you decide to invest in those lenders, you should conduct additional due diligence about the finance group and review the latest performance of those loans, which you can retrieve directly from the P2P lending platform.</p>
<p><mark>As we write this guide about the best p2p lending rates, there is still good loan availability for the above-listed lenders. </mark></p>
<button class="redirect external_link_button promo" value="esketit">Invest on Esketit</button>
<p>If you don&rsquo;t want to expose yourself to unsecured consumer loans in emerging markets, you can also have a look at some of the loans offered by <a href="https://p2pempire.com/en/review/heavy-finance">Heavy Finance</a> or <a>Reinvest24</a>. Those loans are often backed by collateral or a mortgage.</p>
<img class="lazy" src="https://p2pgallery.s3.eu-central-1.amazonaws.com/p2p-lending-returns2.webp" border="0" alt="peer-to-peer lending returns" width="auto" height="auto" loading="lazy" data-src="https://p2pgallery.s3.eu-central-1.amazonaws.com/p2p-lending-returns2.webp" /> <button class="redirect external_link_button promo" value="reinvest24">Invest on Reinvest24</button>
<h3>Investing in Foreign Currencies</h3>
<p>Another potentially high-yielding strategy is investing in loans listed in a foreign currency.</p>
<p>Most of the loans on European P2P lending platforms are listed in Euro. However, the lending company does lend money in local currencies. Hence they take on the currency exchange risk.</p>
<p>This is the reason why most Euro loans are offered with a lower interest rate. The lending company needs to create a reserve to absorb any volatility in currency value.</p>
<p>Here is a list of lenders on platforms such as Mintos or <a href="https://p2pempire.com/en/review/iuvo-group">IUVO</a>, where you can invest in foreign currencies.</p>
<img class="lazy" src="https://p2pgallery.s3.eu-central-1.amazonaws.com/p2p-lending-returns3.webp" border="0" alt="peer-to-peer lending returns" width="auto" height="auto" loading="lazy" data-src="https://p2pgallery.s3.eu-central-1.amazonaws.com/p2p-lending-returns3.webp" />
<p>Remember that if you decide to invest in a foreign currency, you also take on the currency exchange risk.</p>
<p>If the currency you have invested loses value towards Euro, your investment won&rsquo;t pay off.</p>
<p>Here is an example of a &euro;1000 investment in a foreign currency for 12 months.</p>
<img class="lazy" src="https://p2pgallery.s3.eu-central-1.amazonaws.com/p2p-lending-returns1.webp" border="0" alt="peer-to-peer lending returns" width="auto" height="auto" loading="lazy" data-src="https://p2pgallery.s3.eu-central-1.amazonaws.com/p2p-lending-returns1.webp" />
<p>As you can see, certain currencies are relatively stable, and a few currencies like the Rubble, Czech Crown, or Tenge in Kazakhstan have increased in value.</p>
<p>On the other hand, the Turkish Lira has decreased by a lot.</p>
<p>If you are investing in KZT for a 21% interest rate and the currency's value towards the Euro increases by 7%, you are looking at an annual return of 28%.</p>
<p>Indeed, predicting the volatility of a currency pair during a specific period is almost impossible. Still, it can undoubtedly yield an attractive return, given the circumstances that the loans in which have been invested are being repaid according to the payment schedule.</p>
<p><mark>If you decide to invest in P2P loans in a foreign currency, you should note the currency exchange rate when you enter and exit an investment so you can calculate your real returns. </mark></p>
<h3>Investing on the Secondary Market</h3>
<p>Some P2P lending marketplaces offer you the opportunity to buy loans from other investors on the secondary market.</p>
<p>There are two main reasons why investors are selling their investments:</p>
<div class="tips-box">
<ol>
<li>The fear of default</li>
<li>The need for liquidity</li>
</ol>
</div>
<p>With good market knowledge, you can quickly evaluate the risks of particular loans in certain markets.</p>
<p>Investors looking for a quick exit from those loans might offer attractive discounts, which you can use in your favor and increase your returns.</p>
<img class="lazy" src="https://p2pgallery.s3.eu-central-1.amazonaws.com/iuvo-secondary.webp" border="0" alt="p2p lending returns" width="auto" height="auto" loading="lazy" data-src="https://p2pgallery.s3.eu-central-1.amazonaws.com/iuvo-secondary.webp" />
<p>Simply navigate to the secondary market and sort the offers according to the highest offered discounts.</p>
<p>If you believe that the risk of default for that particular loan is low, you might as well allocate certain funds towards this strategy and increase your annual return from P2P lending.</p>
<h3>Loyalty Bonuses</h3>
<p>Some P2P lending sites offer attractive bonuses for investors willing to commit a larger amount of money.</p>
<p>The loyalty bonus rate varies from 0.5% up to 2%, depending on the platform as well as your investment amount.</p>
<p>PeerBerry offers a 1% bonus for investors investing at least &euro;40,000. <a href="https://p2pempire.com/en/review/robocash">Robocash</a> offers a similar bonus with a lower threshold of &euro;25,000. <a href="https://p2pempire.com/en/review/swaper">Swaper</a> offers some of the highest loyalty bonuses with a 2% for investments over &euro;5,000.</p>
<p>Navigate to our <a href="https://p2pempire.com/en/cashback-bonus">bonus section</a> to learn more about the terms and conditions when it comes to loyalty bonuses.</p>
<button class="redirect external_link_button promo" value="robocash">Get Your Bonus on Robocash</button>
<p><mark>Some of the loyalty bonuses offer additional benefits such as higher priority when using the Auto Invest which reduces your cash drag and increases your internal return rate. </mark></p>
<h3>Sign Up Bonuses</h3>
<p>Sign-up bonuses are incentives to attract new investors. Typically, platforms offer either a 0.5% or a 1% investment bonus for newly registered investors, calculated from the invested amount during a specific period of time after the registration.</p>
<p>Sign-up bonuses can be used by simply clicking on the &ldquo; redeem bonus&rdquo; button in our dedicated cashback bonus section. The bonus will be added to your investment account as soon as you fulfill the requirements.</p>
<p>The bonus amount is typically connected to your investment amount. There are barely any cash bonuses available if you don&rsquo;t invest first.</p>
<p><mark>Keep in mind that cashback bonuses are great investment boosts. They should, however, not be the primary reason to invest in P2P loans. You should be fully aware that P2P lending is risky and in certain cases, you might lose your money. </mark></p>
<p>Unfortunately, there are still platforms that aim to lure in investors with cashback bonuses just to fund their Ponzi schemes, so you should also pay attention to the red flag section in our reviews.</p>
<h2>Final Takeaways</h2>
<p>As you can see, there are still ways to increase your returns from peer-to-peer lending in 2022.</p>
<p>You should know that the offered interest rate for the current high-yielding loans might decrease in the future, which is why perhaps now, it&rsquo;s a good idea to allocate a specific part of your P2P lending portfolio into those loans if you feel confident enough to evaluate the risk.</p>
<p><strong>Lender picking</strong> in connection with a <strong>signup bonus</strong> is likely the &ldquo;most conservative&rdquo; option out of all strategies presented in this article.</p>
</article>

8 Best Mintos Alternatives That Bring You High Returns

What You Need To Know About Investing In Microloans

Is Peer-to-Peer Lending Safe? A Must-Read Guide

Looking for the best P2P lending returns in 2024? ⏩ Earn up to 21% per year with our secret strategy ⭐ Increase your return on investment with P2P lending.

P2P Lending Returns 2024 🎖️ Increase Your Interest

Increase your returns from P2P lending

How to Increase Your Return from P2P Lending

P2P Lending Returns

Table of contents

Top Platforms

Latest Guides

About us

P2P LENDING

MEDIA

About us

P2P LENDING