My Review on Lenndy P2P Platform
My Lenndy Overview:
Lenndy is a great way to diversify your P2P portfolio. I particularly like their buyback guarantee, which keeps my investment secured. I also like that I can spread my investment across many industries, countries, and originators.
My self-reported internal rate of return for the past 13 months has been 12.8%. This is an excellent return on investment when compared to other P2P platforms I invest in.
Introduction to P2P Lending Platform Lenndy
Before proceeding with my Lenndy review, let’s explain to the beginners what Peer-to-Peer lending is. Also, check out our p2p cashback offers available for new investors.
What is Peer-to-Peer Investing?
Peer-to-peer lending, for short P2P lending, is a type of loan service, where a P2P business lends money to companies and individuals online and matches lenders with borrowers. The P2P services are often offered online as it is cheaper than the traditional financial institutions.
The result is that lenders earn higher returns compared to deposits and savings accounts, provided by banks. And at the same time, borrowers can borrow money at lower interest rates.
Thanks to the development of the FinTech industry in the last 10 years, we are now able to earn interest rates on our cash higher than even. And we don’t even have to go to the local office to do so.
For the past 30 months, I have been actively investing in 18 platforms for P2P and Crowdlending platforms, and in this article, I will make a review on one of the most famous European Peer-to-Peer lending platform – Lenndy. If you haven’t read my previous review on Klearlending lending platform, go check it out.
Let’s do this FIRE-starters!
What is Lenndy?
Lenndy is a Europen P2P lending platforms. Basically, Lenndy introduces loan originators to investors from all around Europe, allowing them to invest in their loans. The basic premise of the platform is that investors achieve a passive income by receiving interest on the loans they have invested in, every month.
This platform is the brainchild of Donatas Atkauskas, Arturas Stukalo, and Tadas Krivickas. All three co-founders are established players in the P2P lending industry in Europe. Atkauskas sits on the board of Lithuanias P2P crowdfunding and lending association.
What Kind of Returns Can I Expect?
Offering an attractive average return of 12.26%, it is very competitive when compared to other P2P platforms. Most investors achieve a profit of 12% to 15%, while still retaining their buyback guarantees. My self-reported ROI is 12.08%.
Six things to know about Lenndy:
- Lenndy lanched this P2P lending platform in 2017;
- Although they have a virtual office in Latvia, the company based itself in Vilnius, Lithuania;
- Over 27 million invested in the platform;
- Over 8200 loans approved;
- 6400+ investors from the UK, Spain, Malta, Germany, and France use Lenndy platform;
- Most impressively it has a zero default rate so far. Even if you experience a delayed repayment, you are covered by Lenndy’s buyback guarantee.
Let’s Dive More into This Lenndy Review
It has a very user-friendly interface and is forthcoming with information on all aspects of an investment before you make any commitment. It is designed to be used on mobile devices.
Overviews and detailed statistics are just some of the information that is available on loan originators. Users are delighted with the freedom at which they can access this information.
The signup process
- You can register as usual with your email address or phone number, but the platform also allows ease of ref=gistraion using Facebook or google profiles too;
- 18 years old or over are welcome to use the platform. They also welcome corporate investors;
- If you choose to register by email, they may require some additional information to complete the process. You will receive an activation link, click the link to confirm when you are ready;
- New users will be asked for some more information when they log in; surprisingly the platform doesn’t require proof of identification until you want to withdraw money.
Type of Loans
Lenndy offers many different types of loans, such as:
- Mortgage loans
- Business loans
- Secured car loans
- Invoice financing
- Personal loans
Lenndy also provides an impressive amount of information concerning the collateral. One example is that of a car, put up as collateral, they provided detailed pictures to ensure you get as much information as possible to see if the collateral will cover the loan.
Pros of the Lenndy platform:
- Investments are available from as low as 10 euros;
- A buyback guarantee is available on some loans;
- The interest rates offered are competitive, up to 15%.
Cons of the Lenndy platform:
- There is no formal secondary market;
- They charge a fee of 5% if you want to sell your investment.
How to Transfer Funds to Your Lenndy Account
Once you have registered your account and provided the information required, the platform takes you to a page to enter your bank details.
For now, they can only accept euro investments as you cannot exchange currencies on Lenndy.
Only 50 Euros are Required to Start Investing with Lenndy
Lenndy has plans to implement a minimum deposit of 10 Euros in the future to bring it in line with some of its competitors.
They do accept deposits using Transferwise, Revolut, or Paysera (normal bank transfers too). Transferwise and Revolut are preferred as the fees charged are much lower (no fees at all with Revolut or Paysera) than banks and other options. They also give you a real exchange rate.
If you sign-up through the button below and invest a €100, you will immediately receive a €10 bonus.
Making a SEPA Bank Transfer on the Lenndy Platform
This can take 1-2 working days to process, once the funds are in your account, you can start investing immediately.
The P2p Lending Investment
Lenndy offers a very reasonable interest rate of 12%; this compares very favorably with similar platforms
You can choose loan terms of anything from 1 to 30 months
An important point to remember is that Lenndy is not responsible for your taxes; you need to declare any profits to the relevant tax agency yourself.
How to Invest with Lenndy
Investing in the platform is pretty straightforward. On the top menu, you will see a loan icon, click on it, and the available loans page will open.
To see more information on any loan, click on loan ID and all the loan details will appear in a pop-up. The platform offers a lot of additional information such as term, purpose, repayment method, and loan type, collateral, amount sold to investors, and images if applicable.
To ensure your loans are in the buyback guarantee it needs to have a white and brown shield on the investment. Many users choose the auto-invest option once they have become comfortable with the platform.
How to Use the Auto-invest Feature
The auto-invest feature is straightforward to set up, and this can be configured through Lenndy’s auto-invest page. If you are interested in a more passive investment opportunity, then the auto-invest option is the way to go.
My Personal Auto-Invest Setup
Lenndy offers the possibility of auto-investing and its pretty simple to set up. You can check Lenndys’ auto-invest page to see the ways you can configure the settings.
You can set up a simple auto investment inside the platform. It’s very easy to do and makes everything much more passive.
Inside the Lenndy platform, I have three different auto-invest portfolios. My portfolios are divided by the loan originators, however, the settings are the same amongst the three portfolios.
- Currency: EUR (only option)
- Market: Primary (only option)
- Interest rate: 12% to 15% annually
- Loan term: 1m – 60m.
- Buyback: Yes
- Loan type: Secured car loan, Mortgage loan, Business loan, and Personal loan
- Investment amount: 10 EUR
- Reinvest: Yes
Lenndy also Offers a Secondary Market
There is also a popular secondary market on the platform; this allows you to sell any investment to other users. This option is only applicable to loans that are not late.
The platform charges a fee of 5% for brokering the sale, and funds will be received within 30 days. They do have plans to reduce this fee to 3% in the future
Lenndy’s Buyback Guarantee
As yet, 0% of the loans on the Lenndy platform have defaulted, yes we know that is an impressive statistic. Even more so is the fact that the buyback guarantee covers 80 % of the loans available in the market. In other words, despite the 0% default rate, you should choose loans that are covered by Buyback.
Please remember, as, with all investments, there is an element of risk. Most investments in Lenndy are short to medium term. If you think you will need the money within 12 to 36 months, maybe this is not the platform for you.
Lenndy does not practice any type of withholding on the interests we generate on the platform. Thus, each investor is obliged to report and pay taxes on the income generated through each platform.
Which Are the Best Platforms Alternative to Lenndy
Lenndy is a serious player in the peer-to-peer market. It is one of my top lending platforms to grow as a part of my investing portfolio. I definitely recommend trying it out and trusting it.
*If you sign-up through the button above and invest a €100, you will immediately receive a €10 bonus.
Some links on this page may contain affiliate links, which means that I may earn a commission if you register through them. None of the posts on this blog have been sponsored. Opinions are mine.