Money lending platforms in Europe.

Thanks to lightning-fast fintech development, there are a ton of awesome new ways for everyday people to put their money to good use. One such opportunity is money-lending platforms, where you can invest in consumer loans issued to other people. For the record, consumer loans are loans granted to individuals that do not require any collateral.

Thus, investing in money-lending platforms means lending money to individuals without collateral. As consumer loans are one of the most expensive ways of borrowing and usually carry quite high interest rates, investors borrowing on money lending platforms can earn really impressive returns.

The biggest and best money lending platforms act as marketplaces for loans, where people who want to invest meet people who want to borrow money. So the consumer lending platform itself is like an intermediary that brings people with different needs together. These platforms work with something called crowdfunding. Imagine a bunch of regular people chipping in small amounts to fund someone's loan—that's the power of crowdfunding! The best part? You can become an investor with just €10 or €20. That means even people with small savings can finally put their money to work and watch it grow.

The key to these money-landing platforms is trust. After all, you're putting your hard-earned cash in clients hands, and if they don't repay, you could lose some money. This is why all top money lending platforms pay great attention to assessing the credibility of the clients requesting a loan. Thus, consumer lending platforms carefully assess each loan applicant and often take care of the recovery of the outstanding loan.

So if you decide to lend money to people on this kind of investment platform, you will be investing in consumer loans for people. These loans are for personal consumption and usually do not exceed €10–15,000. Although money lending platforms are a relatively new investment trend, their relatively solid returns are rapidly attracting new investors who want to make money by investing in lending money to people. It could be argued that if you want to put your savings to work in a profitable way and at the same time get a closer look at investing itself, money lending platforms could be a really good place to start.