Value Nomad

March 23, 2019

NEO Finance Review (Peer to Peer Lending)

NEO finance review: This post will delve into a peer to peer landing platform available in Europe and analyze everything you need to know about it

Very often, individuals talk about peer to peer lending and projects. Most of these times, one of the most imperative discussions is what platform is reliable and available to invest in. Fortunately, in this NEO Finance review, we will discuss why it might be an ideal platform for your investment portfolio.

neo finance review

NEO Finance Overview

Peer to peer lending investment draws a great deal of discussion in the investment world and you probably must have heard of it. It is not so uncommon because they can serve as an alternative to fairly unsecured and complicated bank loans with lots of paperwork. This investment is set up in a way that allows online investing via a peer to peer lending/investing website which allows users to borrow and lend directly from themselves.

NEO finance is one of the great deal of leading platforms in Lithuania that has a background in this investment. This platform offers a unique quality of being the first Lithuanian platform to be registered and licensed with unlimited activity in the entire European Union.

It is a fast growing institution under the supervision of the Bank of Lithuania with 5700+ investors and over 25 million euros loans granted in about 6500 loan counts.

Let’s take a quick insight on how NEO finance works.

Opening Account on NEO Finance

This involves creating a user account and an electronic money account. Account opening is totally free and does not require any fee. The most important data needed is an email address, however other basic information are required but not compulsory. One other feature is that NEO finance allows account opening for individuals younger than 18 years of age provided there are legal representatives for such.

Click here to open an account at NEO finance

How to Invest in NEO Finance

Once you have completed the registration process, investing in NEO finance is an uncomplicated process. All you need to do is verify your identity and deposit into your NEO finance electronic money account.

Once the money is available in your account, you can decide if you want to invest with/without provision fund in addition to the investment methods available. Provision fund is a service that offers protection and reduce the risk of your investment. With this, NEO finance provide surety for the loan recipient. Additionally, there is an auto investment option.

Type of Investment Available at NEO Finance

NEO Finance is the typical peer to peer lending provider. Loans are divided by credit score and you have a decent amount of information regarding each one of the loans available. NEO Finance also provides a secondary market for investors.

neofinance loans review

NEO Finance Auto-Invest Tool

The Auto-invest tool is a great feature this platform has over many other peer to peer investment platforms. This tool by and large automatically ease the stress of manually selecting investment options.

The stress is transferred to the platform which constantly review borrower’s submitted applications and conclude loan agreement on behalf of investor. Ideally, you must set a range of criteria to allow automation of investment.

How Much Can you Earn on NEO Finance

Your returns on investment can greatly depend on factors such as bank charges, taxes and yearly returns of platform. NEO finance has a yearly return at 14% presently and with one of the highest risk/reward  ratio in Europe. Its average interest rate for the 17.51% per year for the current period.

Nevertheless, returns for individuals may vary; consider taxes in your home country. Also, some banks charges percentages to send and receive money and this might be a lot of money in the case that you’re sending a high amount of money thus, affecting returns.

Finally, this platform offers provision fund which is more like a guarantee of good returns and stability.

Who Can Invest in NEO Finance

NEO finance is basically open to citizens of the European Union with a valid means of identification.

NEO Finance Pros

  • Has a unique service of provision funds which guarantees payback and reduce investor’s risks.
  • Unlimited licence to operate in the entire European Union.
  • Offers automatic investment with a favourable return.

NEO Finance Cons

  • It is not available for investors worldwide.
  • Does not offer diversified projects to invest in.

NEO Finance Verdict

Choosing which sort of P2P investment platform is best for you can be confounding. Imagine a scenario where you could get the flexibility of automated investment. Remove the stress of going through a list of loans and add a chance to expand cash. Finally, consider its low risk of not getting your money back—would you go for it?.

The majority of these primary concerns is conceivable with the NEO finance platform yet this platform isn’t for everybody. In case you’re new to P2P investment, NEO finance can be an ideal and a straightforward type of platform for you.

Other Crowd Investing Resources

For those looking for other similar peer to peer platforms to invest, you may want to read some of our other reviews. There are many peer to peer lending and investing platforms currently available, and you can diversify your interest income by using several of them simultaneously.

You can consider some other peer to peer companies checking our Peerberry review and our Envestio 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 NEO Finance or in any other peer to peer lending platform? Leave your thoughts and questions about this NEO Finance review below.

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