Peer-to-Peer (P2P) Lending in Germany – Top 5 Platforms 2023

If you are a German investor interested in P2P lending, we have compiled a list of the top platforms currently available for investing in peer-to-peer lending in Germany.

Best local platforms for peer-to-peer lending in Germany

In Germany, there are several P2P lending platforms that offer diverse financing options, such as small business loans, real estate investments, green energy projects, and others. Let’s take a look at some of the most noteworthy P2P lending platforms in Germany:

• Auxmoney
• Moneywell
• Companisto
• Marvest
• Lendico
• Smava
• Bergfürst
• Exporo
• Debitos

History of peer-to-peer lending in Germany

Peer-to-peer (P2P) lending, also known as crowdlending or marketplace lending, is a form of alternative finance that connects borrowers directly with lenders, bypassing traditional financial institutions like banks. In Germany, the development of P2P lending began in the mid-2000s, following the global trend set by platforms such as Zopa in the UK and Prosper in the US.

The first P2P lending platform in Germany, Smava, was founded in 2007. Smava initially focused on consumer loans, allowing borrowers to pitch their loan requests to potential lenders. Over time, other platforms like Auxmoney, Lendico, and Funding Circle emerged, offering various loan products, including consumer loans, business loans, and real estate loans.

Throughout the years, German P2P lending platforms have evolved in terms of technology, regulations, and market trends. With the growth of fintech, platforms have improved their online interfaces, credit scoring models, and risk assessment tools. Additionally, the German market has seen increased regulation and oversight from the Federal Financial Supervisory Authority (BaFin), ensuring consumer protection and a stable marketplace.

Comparison with other countries

Comparing the German P2P lending market to other countries, it is evident that Germany has experienced significant growth in recent years. The German P2P lending market based on volume is one of the largest in the EU. However, the UK remains the largest and most mature P2P lending market in the region with the most lending activity and largest platforms.

In comparison to neighboring countries, Germany has a larger P2P lending market than France and the Netherlands. However, it is worth noting that the German market is still developing, and factors such as the country’s strong traditional banking system and cultural aversion to debt may have impacted the growth of P2P lending.

Best European platforms for P2P lending in Germany

To find the best P2P lending platforms in Germany, investors should consider the fees and returns offered. Here are some of the most popular options:

• Lendermarket: This user-friendly platform offers low fees and high-return P2P loans.
• Esketit: This platform is popular for short-term loans and offers investors the chance to invest in projects with high potential returns.
• Reinvest24: This crowdfunding platform allows investors to access equity investments in real estate projects in Europe.
• AxiaFunder: This platform focuses on litigation crowdfunding and is ideal for investors seeking a unique investment opportunity.
• PeerBerry: Investors can choose from personal, business, and real estate loans on this platform, which also offers a buyback guarantee.

These platforms offer a range of P2P lending options with low costs and the potential for higher returns. Investors should research each platform to ensure it aligns with their investment goals.

FAQ about P2P lending for German investors: