Lendermarket review
7
(our review)
Lendermarket is a peer-to-peer lending platform that allows you to invest in short-term loans with interest rates of up to 16 percent. We rate it a 7 out of 10. The returns and the amount of loans are very good. However, we noticed that almost all of the loans come from Creditstar, the main loan originator.
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Please note: investing online via Lendermarket involves risks; you may lose (part of) your investment
What characterizes Lendermarket?
The platform was founded in 2019 by Creditstar, a European credit provider. The peer-to-peer platform grew rapidly and is now one of the better-known names in p2p-lending in Europe. It has a focus on short-term loans with high interest rates and also offers a simple Auto Invest feature, for passive investors.
Investors often compare Lendermarket to other peer-to-peer platforms like Mintos, PeerBerry and Bondora.
Usability
Lendermarket is a user-friendly platform, which is available in English, German, French, Spanish or Italian. There is no mobile app, but the website does work really well in mobile browsers as well.
Investing can be done manually, from 10 euros per loan. The same minimum applies to Auto Invest. Lendermarket is set up in a way that focuses on passive investing through the Auto Invest feature. The dashboard provides a clear overview of your portfolio, returns and incoming payments. Withdrawals are usually processed within two days.
With Lendermarket, it becomes easy to invest in peer-to-peer loans
Creating an account
Creating an account on Lendermarket is quick. You just need to answer a couple of questions, which it is required to do by regulators. These include your name and address details, your knowledge of peer-to-peer lending, and the source of your funds.
The verification is completed with a passport and selfie check through Veriff.me, which is a well-known solution for this process. Completing the entire process takes a couple of minutes. The verification itself is also done quickly. To get registered, you do need a passport or ID card and a phone with a camera.
Once your account has been created, you can start depositing money into your account and start investing as a ‘non-sophisticated investor’. This means that the platform has to provide you with extra protection against yourself due to legislation. For example, it is possible to cancel loans up to four days after you invest in them.
Joint, personal or business account
It is possible to create both a private and a business account on Lendermarket. We only tested the private options. This type of account seems to be the most popular one among users. It is also possible to create a joint account, but you will both need to complete the registration process separately. After that, your partner can give you permission to use the same account.
Transferring or withdrawing money
Once your account has been created, you can deposit money into it. This can be done by bank transfer or credit card. We did not encounter any external payment providers, even though this is mandatory due to the ECSP license. Without a third-party account, you run an additional counterparty risk.
Lendermarket is quite strict when it comes to deposits. For example, it did not accept payments from a joint bank account (where the partner was not verified) or from an account where the name of the owner was only provided in initials. Your first bank transfer may also be delayed, as the platform takes a while to check the transfer. However, when we used a credit card, our deposits were transferred immediately.
You can link multiple bank accounts. The platform will transfer your refunds to the bank account that you have used last. If you need to switch to another bank account, you can do that by transferring 1 cent to the platform, for example. For withdrawals, there is a minimum of 50 euros and a processing time of three days.
You can quickly and easily create your own account online
Loan offer
Lendermarket primarily offers consumer loans that are from Creditstar Group, the parent organization of the platform. Creditstar Group gives out loans in several countries, including Estonia, Finland, Spain, the Czech Republic and Poland. It mainly provides short-term consumer loans and has issued millions of loans since its inception in 2006.
Creditstar Group is also the largest loan originator on Lendermarket. Because of that, it mainly determines the platform’s offering and quality. However, it also has loans from other loan originators. All loans have a buyback guarantee, usually after 30 days. There is no secondary market on the platform.
Auto Invest feature
Just like many other investing platforms, Lendermarket has an Auto Invest feature that allows you to automatically invest in loans. Not all loans are eligible for the feature, so far it includes loans from Creditstar and some other originators. You can set your own filters to determine the term, interest rate and country. Most loans have a short term, usually 30 days, with interest rates of up to 16 percent.
Rates and returns
Lendermarket does not charge investors any fees. Registration, deposits, withdrawals and investments are free of charge. We have not been active on the platform long enough to have a clear picture of the returns, but initial experiences have been positive.
Creditstar generally offers stable refinancing, which means that we received our payments on time. Although some loans are delayed, our net returns are around 13 percent based on the Steady Growth plan. This puts Lendermarket among the top European p2p-platforms.
Reliability and risks
So far, Lendermarket has built up a reasonable track record. Payouts have been going well for us so far, although we have only tested this to a limited extent. Customer service always responds quickly: we mainly used the chat function on the website.
Reviews on Trustpilot are mixed: some users are positive about the simplicity and returns, while others criticize delayed repayments.
Dependency on Creditstar
The strong dependence on Creditstar can be a disadvantage, as it is responsible for almost the entire loan offering. Creditstar has been active since 2006 and is an organization with over 80 employees. It is a serious organization, but in previous years there have been delays in repayments. As a result, the buyback guarantee offers little extra security.
Regulation
Lendermarket is based in Ireland. It has a European ECSP license.
Review score: 7
In our latest review, we give Lendermarket a score of 7 out of 10. The platform has been around since 2019 and grew rapidly, thanks to Creditstar’s strong position. The interface is simple and returns are high. We achieved returns of 13 percent. The platform itself forecasts between 14 and 16 percent per year.
Advantages include high interest rates, ease of use, and the automatic investment function. The platform is clearly structured, and deposits and withdrawals are smooth. The main disadvantage is its dependence on Creditstar. Both the supply and repayments are entirely dependent on this provider. In previous years, there have already been delays in buyback payments. As a result, the buyback guarantee offers little extra protection.
