The P2P loans are financing transactions between peers/individuals, without a financial institution involved. The P2P platforms have also made it possible for everyone to easily loan to others, obtaining return rates that are comparable in magnitude, and often higher, than those offered by the stock markets, with the plus of being more predictable and constant.
The definition of this category is not easy, since several platforms also lend to companies or even offer some real estate project. There are two major sub-categories. On the one hand, the platforms that belong to large loan issuing entities. On the other hand, Crowdlending Marketplaces, which are like loan aggregators, that is, platforms that agglutinate the loans issued by several different loan issuers (originators).
It is the category where I have explored more different platforms. I am happy with the operation of almost all, although I have my favorites. All are characterized by offering a large number of fixed term and interest loans and allowing the lowest investment per loan (around 10 euros). Almost all suffer fluctuations in profitability due to the lack of loans during variable periods, never too long (at least for the time being). All have AutoInvest tools (automatic investment) and several also offer secondary markets, which allow to sell loans or buy at a discount (or bonus). Some platforms allow to invest in several different currencies, some quite exotic.
Most offer guaranteed loans (with Buyback) except for FinBee and Fellow Finance. This basically means that loan originators cover 100% of defaults (and often also accrued interest), usually once they reach 60 days of delay. Some platforms (such as Mintos) offer both secured and unsecured loans.
Mintos, being the largest platform, offers the greatest diversity in terms of currencies, number of suppliers, interest rates offered (from 8 to 18%) or term (use a few days to 70 months). The others tend to be more homogeneous. For example, despite having the lowest yields, Viainvest and Viventor have the advantage of investing mostly in very short loans so that you can recover all the invested money quickly (a few months). Other platforms like Fellow Finance or FinBee offer unsecured loans at very high interest rates (up to 55% in the case of the former).
My strategy is maximum diversification, i.e. investing the minimum per loan on multiple platforms, diversifying at a second level in terms of the number of providers/originators offered by each platform. It should be borne in mind that although the loans are guaranteed in most cases, there is always the risk of bankrupcy of the company issuing the loans, as indeed already happened with one of Mintos providers (Eurocent; the only one so far).
As I have mentioned, the P2P platforms often go through cycles of lower supply of loans or fluctuations in the interest rates offered. Therefore, it is advisable to rotate the unused money (Cash Drag) between platforms.
Besides, I have also begun to invest in currencies other than euro, which usually offer more attractive interest rates. So I invest through Mintos in currencies from Kazakhstan (Tenges), Georgia (Laris) and British pounds (GBP). The first two because of the really attractive interest rates (17-18% and 16% respectively), and GBP because I had some saved. Obviously, one must keep in mind the additional costs of currency exchange at the time of converting and the evolution over time, which can increase or decrease the profitability.