Consumer and business loans have offered a high annual return for investors. The average annual return after credit losses has been around 10%. Investing in loans offers you an access to a new asset class. The return on loans does not correlate significantly with the stock or bond markets indicating that loans are a good addition to managing your own total portfolio.
The return is interest based on capital you have lent. The interest rate of a loan is determined in an auction between investors. Interest rates generally vary between 5-20%. The level of interest rate in our service offers competitive loans for borrowers and a excellent return opportunities for investors.Read more
In Finnish and Polish peer to peer loans the credit risk is limited by selling unpaid loans to collection agencies. In addition, a voluntary payment protection insurance is offered for Finnish consumers. In business loans the credit risk is significantly reduced by an entrepreneur's own personal guarantee and also often a collateral such as real estate or enterprise mortgage.Read more
Our online marketplace combines those who want to save their spare money for those who need temporary funding. Both a borrower and a lender decide the terms on which they are willing lend and borrow. You can invest in German, Polish, Swedish and Finnish consumer loans and Finnish business loans and trade receivables.Read more
Fellow Finance is the leading marketplace lending platform in Northern Europe. We have intermediated through our marketplace for over 240 million euros of loans and the platform has been used by over 300 000 borrowers and over 7 000 investors. Did you know that more than 70% of peer-to-peer applications are rejected because of rigorous credit policy?Read more on statistics
Are you considering a new alternative investment asset class to diversify your total investment portfolio or are you thinking to start your journey as an investor? Whether you are looking for a savings instrument or managing a bigger portfolio Fellow Finance enables you to invest in an asset class earlier unavailable. We have made he investing in consumer and business loans easy. Over 15 years of experience in credit risk management and investing in loans we have built the most advanced marketplace lending platform in Northern Europe. Since our establishment in 2013 we have grown to become the leader in Northern Europe in our field. We offer a possibility to invest directly in loans for investors free of charge.
By investing in loans you will have an access to an investment product that has previously been exclusively available for banks. According to the bank earning logic, a bank collects money from depositors at a low deposit rate to lend the same money to borrowers at a higher interest rate. Our platform removes the bank between a saver and a borrower and the saver himself chooses whom and on what terms he wants to lend his spare money. Thus, the saver gets the entire interest from his money without brokerage fees earlier taken by the bank. Fellow Finance is a part of the sharing economy digital solutions are used to connect the end users without traditional intermediaries. Why lend money at a low interest rate to a bank if you now can lend it directly at a higher interest rate?
Fellow Finance finds and identifies the loan applicants and assesses their loan applications. To have his loan application accepted the borrower can’t have any earlier payment defaults and needs to have sufficient monthly disposable income to repay the monthly instalment. You choose whom you are willing to lend and on which terms. Our machine learning based credit scoring model has a proven track record that can be observed on our statistics page.
You can easily diversify investment portfolio in hundreds of loans to reduce credit risk significantly and making it possible to get steady returns with low volatility. You can diversify your loan portfolio geographically in German, Polish and Finnish peer to peer loans and Finnish business loans and trade receivables. Investing your total capital to at least 100 different loans decreases credit risk. A maximum 1% of the total capital should be invested in one loan within a single loan market. Investing in peer to peer and business loans enables you to diversify your overall investments in to a totally new asset class that does not correlate much with traditional asset classes such as stocks and bonds.