Value Nomad

March 23, 2019

Monestro Review (Peer to Peer Lending Platform)

Monestro review: in this post we will learn more about of the fastest growing peer to peer lending platforms in Northern Europe offering great investment opportunities

Are you looking to diversify our peer to peer lending platform investment portfolio? Our Monestro review will get you through analyzing wether this p2p lending platform is the right for you.

monestro review p2p lending

Monestro Overview

It is time for another peer to peer lending platform review and this time we have Monestro. This platform is the typical peer to peer lending platform, but it has some differences when compared to bigger players on the market such as Mintos. We will explore most of its key functionalities in this Monestro review below.

It comes as no surprise that Monestro is another fintech company hailing from Northern Europe, more specifically from Estonia. Estonia’s government is doing a lot of efforts to boost the fintech market, and with the freedom of EU markets, many of these investment platforms can operate in various countries while keeping its base in Estonia.

While Monestro have investors from various European countries, most of the borrowers are, as of early 2019 from Estonia and a few ones fromĀ Finland.

Let’s learn more below in our Monestro review about what the platform has to offer and how to invest using it.

Opening an Account on Monestro

Like in any peer to peer lending or crowd investing platform, opening an account with just require an email account. However, to effectively invest on Monestro you will be required to pass the AML/KYC process, which involves providing an ID document scan.

Click here to visit Monestro

How to Invest in Monestro

The procedure of investing using Monestro works pretty similarly to other peer to peer lending platforms. There is a system of bidding on loans, however, since the competition is not fierce, if you bid on a loan you will most likely win it and be able to provide that loan.

After opening an account and passing verification you can start bidding/investing on loans with as little as 10 euros per loan.

Types of Loans Available at Monestro

Monestro has a relatively limited amount of loans available to invest, as the platform is relatively small. You can however have a lot of information regarding the borrower. The data includes its income, profession and why the loan was requested.

In Monestro you can even ask questions directly to the borrower if you want to clarify any aspect of the loan to minimize risk.

monestro review

This platform connects borrowers and lenders directly, unlike some others which have loans listed by a company which provides the loans itself.

How Much Can you Earn on Monestro?

Right now Monestro has some of the highest interest rates among all peer to peer lending platforms. According to data provided by Monestro the average is 20% interest rate, which is just extremely high. As Monestro connects borrowers and lenders directly, this is one of the reasons why interest rates for lenders are higher at Monestro than in other platforms.

monestro review 1

Who can Invest on Monestro?

One of the limitations that Monestro has it that it is opened, at the moment, just for European Union citizens. While other platforms require you just to have an EU or EEA bank account, Monestro will require an EEA issued document (passport, ID) to pass its verification. This is one of the biggest limitations of the platform.

Monestro Pros

  • Extremely high interest rates.
  • Low minimum amount investment.
  • Auto Invest available.

Monestro Cons

  • Only EU / EEA citizens can get verified as of early 2019.
  • Low number of loans to invest.

Monestro Review: Verdict

Monestro is a platform that I will definitely keep an eye on. Despite its low number of lending projects, its extremely high interest rates are tempting. Being able to earn as much as 30% p.a. on a lending platform is really tempting.

The platform however is rather small, and I don’t recommend it if this will be your first p2p lending platform. On the other hand, if you have some experience with peer 2 peer investing, it can be a great option to diversify your portfolio of investments.

Other Crowd Investing Resources

Peer to peer lending and crowdfunding investing platforms are booming and this trend is likely to continue for a few more years to come. We are constantly reviewing and adding new platforms on Value Nomad for anyone willing to find new investment opportuntiies.

You can consider some other peer to peer companies checking our Mintos review and our Grupeer review. Check our post on the best peer 2 peer lending platforms in Europe, and the best real estate crowdfunding platforms in Europe.

Are you already investing in Monestro or in any other peer to peer lending platform? Leave your thoughts and questions about this Monestro review below.

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