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Peer-to-peer lending is on the track to become one of the top options to invest in The Czech Republic from abroad. With peer-to-peer lending platforms that connect borrowers with lenders, both beginners and professionals may find new profitable investment opportunities and diversify their portfolio into new markets.
Whether you’re looking to invest in real estate crowdfunding, personal loans or business startups, you’ll find a range of convenient Czech sites that cater to your personal preferences and risk appetite.
If you’re wondering why investing in The Czech Republic would be a good idea, you’d be interested to know that the Czech economy was the second largest recipient of foreign direct investments in Central Europe in 2019. This comes down to the fact that the country has a positive and thriving business climate, with a strong economic growth around 3% per year – well above the EEA average.
Without any further ado, let’s take a look at the top performing Czech peer-to-peer lending platforms that have a bright future ahead of them. You’ll find a varied selection of choices, all of which have their specific pros and cons for you to consider. Let’s dive in.
Best peer-to-peer lending platforms in The Czech Republic:
1. Bondster
Prague-based Bondster is a rising star among on the European peer-to-peer marketplace scene. If you’re searching for the best crowdinvestment platform in The Czech Republic, this is the number one choice you can go ahead with.
Bondster offers returns up to 13% from peer-to-peer investments such as consumers loans that are protected by a buyback guarantee, but also more interesting choices such as secured business loans, car loans, and real estate development projects backed by mortgages.
- Type of Investment: Consumer loans, real estate, business
- ROI: Up to 13.5%
- Security: Depends on loan originator: buyback, mortgage, and unsecured
- Secondary Market: No
- Auto-invest Function: Yes
- Minimum Investment Amount: 5 Euro
- Currency of Investment: Euro
- Platform Founding Year: 2017
- Country of Operation: Czech Republic
Bondster is essentially a no-frills investment site with zero commission fees for investors. On top of that, the company has a minimum investment of only €5, which facilities a ideal environment for maximum diversification. If you want an excellent alternative to well-known players such as Mintos, Bondster is the peer-to-peer lending platform you should keep an eye on now and in the future.
2. FinBee
FinBee remains a top choice this year for investing in Czech peer-to-peer loans. If you’re looking for a platform with great yields and a long track record, FinBee might be what you’re after. The company currently offers some of the highest returns in Europe, going up to 18% per year, which is well above the industry average.
FinBee functions as a loan originator and investment platform in one. The team signs all contracts with borrowers in person after all identification and financial checks. The company offers two investment options for lenders to select between: business loans and consumer loans.
- Type of Investment: Personal loans
- ROI: Up to 18%
- Security: Limited (depends on debt recovery)
- Secondary Market: Yes
- Auto-invest Function: Yes
- Minimum Investment Amount: 5 Euro
- Currency of Investment: Euro
- Platform Founding Year: 2015
- Country of Operation: Lithuania, Czech Republic
The loan duration varies by each loan, with some being as short as 6 months and other lasting for about 48 months. You can set up an automatic lending portfolio or choose manually which loans you want to invest your money in and gain easy exposure to the Czech loan space.
The downside to the high interest rates offered by FinBee is that there is no buyback guarantee or mutual fund to cover your losses, although this security feature has become an industry standard in recent years. However, FinBee grades all loans, which makes it easy for you to set the auto-investor to pick up the ones that meet your appetite for risk.
3. SymCredit
Symcredit was launched in 2014 and has become a preferred marketplace for business crowdfunding and angel funding in the The Czech Republic. If you need an alternative to the consumer loan-focused sites mentioned above, you can place a bet on Symcredit and explore the many offers on their site.
- Type of Investment: Business loans, angel
- ROI: 8-14%
- Security: In house debt recovery
- Secondary Market: No
- Auto-invest Function: No
- Minimum Investment Amount: 50 Euro
- Currency of Investment: Euro
- Platform Founding Year: 2014
- Country of Operation: Czech Republic
Interest rates and maturity terms vary greatly from loan to loan, meaning you’ll have to spend some time delving into the individual projects – which can be both fun and time consuming. No matter what option you settle on, SymCredit guarantees the return of principal up to 400 Euros in case the credit goes bad.
The whole idea of SymCredit works very similar to the way banks issue bonds, except the rates are better, and transparency is guaranteed. SymCredit belongs to Symfonie Capital, which is a US-based securities and investment company.
All information is present on the platform for investors to study and choose the option best suited for their needs. The website layout is clean simple and easy to use, and users can start investing directly after setting up their profile.
4. Zonky
Zonky is the largest and best known peer-to-peer lending platform within the Czech Republic that has financed loans worth more than 6.7 billion CZK through their website and maintains a user base of over 15,000 members.
- Type of Investment: Personal Loan
- ROI: Around 4.4%
- Security: None
- Secondary Market: No
- Auto-invest Function: Yes
- Minimum Investment Amount: 10 USD or 200 CZK
- Currency of Investment: CZK
- Platform Founding Year: 2015
- Country of Operation: Czech Republic
International investors might want to look elsewhere for alternatives to Zonky, as the company offers no English translation of the website. However, for those with knowledge of the Czech language, Zonky is worth paying attention to, as interest rates can hit 19% by picking loans manually:
You can start with a very little amount of 200 CZK to begin with and a test the waters to see if you feel comfortable lending on the platform.
That said, there are definitely better options available than Zonky for peer-to-peer investors that are both more profitable and provide better security measures for your money. Zonky currently offers below industry-standard rates and need to improve in this vital regard.
