Do you have some money left?
For example, with which you could go to the stock exchange?
You can do this, but lending it out is perhaps even more attractive!
You can then ask interest on it, which leads to a return of up to 19%!
And you do not have the risk of price fluctuations such as with investing.
Have you ever been the bank at Monopoly? Or another similar board game (Hotel, etc.)? That's a nice feeling, isn't it?
In real life you can also play for the bank. You can lend money to people and charge interest for it. In fact, if you borrow money , you must officially even ask for a market-based interest for it, otherwise the tax authorities see it as a gift / donation, so also with private loans!
And that means that you can make good profit with your money. The interest on a loan is always higher than the interest on a savings account. Much higher in fact.
In principle, you can charge as much interest as you want, although the AFM has set a maximum for this within the Netherlands. So you can't make it too crazy, the times of usurious interest are over ...
In practice, this is 14% for short-term loans of 1-2 months (although it is difficult to spend them yourself) and for longer maturities around 4%. But outside the Netherlands, the loan interest rates are even much higher , up to 19%!
Please note that you are not allowed to declare other costs such as administration or closing costs, you must deduct all of this in the interest.
But how do you find people who specifically want to borrow money from you? Because you don't want to make a profit at the expense of your friends or family? And how do you go about it properly with documents and stuff?
Don't panic, special internet platforms have emerged that respond to this demand as an intermediary. As an investor, you can deposit and lend your money there. And then transfer it back to your account at a profit. And they arrange everything around it.
The platform, on the other hand, also looks for people who want to borrow and arrange money between both parties for the agreement and payments.
Because you lend money to 'peers', as in that you as a private individual lend money to another private person, these are called peer-to-peer websites. Also referred to as P2P.
Because the differences in interest rates are so great, we do not have one best option for you but two: outside and within NL:
|Mintos||Lender & Spender|
It differs a bit per platform. At Mintos you deposit money in your account and you can then manually choose which loan you want to put your money into. You see some basic information and of course the conditions such as interest and term.
After that you will receive a periodic refund from the person, plus of course your interest. This money enters your account, and you can lend it out immediately so that you immediately earn extra interest, or you can collect it. You can even automate this so that you no longer have to worry about it, but you let your money grow automatically.
At Lender & Spender , your money is automatically spread as much as possible over many loans. This makes the risk much lower . You can then opt for monthly payment of your payments, but you can also do this manually. You can also reinvest this money immediately.
As we have explained before, you should not see this as a form of investing. It is not. After all, you take out a loan to someone. He therefore has a contract and must legally pay back. You have no risk that the shares you buy will lose value or the company will go bankrupt.
The platforms themselves also have their own guarantees to protect investors like you with repayment guarantees and they also provide repayment schemes and collection procedures if this is unexpectedly necessary. The borrowing party has to pay those costs, so that is not for your account.
The platforms also don't just lend your money to everyone. They check / screen, just like a bank, whether people have an income, etc. and do not give people at risk your money. They also benefit from that.
The loan contracts are even placed in separate companies, so that you still get your money even if the platform itself goes bankrupt! But it is still not 100% out of the question that somebody really cannot repay a part. But that shouldn't cost you any money, just a small portion of your profit.
Of course, the platforms outside the Netherlands do not fall under our own law, so that option is separate if you do not want to cross the border. In real disaster scenarios, this will make a difference for a good outcome, although FastIvest in England is also in a reliable country.
This differs enormously per platform. These are often small loans to private individuals. In part, you can even decide to whom you want to lend or not, other platforms do this automatically for you.
They do this with a maximum spread to reduce risk. We also recommend this if you choose the people for your loans yourself. If you divide money over many small loans, the risk and impact of default is much smaller.