Why invest in loans?

If it’s your first time investing in loans, it’s only natural that you may have some questions. To help you out, we’ve answered some of the more common questions regarding investments in P2P loans, such as: Why should I invest in loans?

Here are three reasons why:

  • Stable return

    In comparison to the stock market, investing in loans is often more stable. SaveLend's target return is 7-9%. However, since 2014 we have generated an average of 13.82% interest on invested capital per year.
  • The perfect complement to the stock market

    Investing in loans is a great way to ensure risk diversification and balance your portfolio.
  • Risk diversification

    When you invest in P2P loans with SaveLend, your capital is invested in hundreds of different loans. This helps you counteract the risks even further.
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Why is investing important?

Before you decide to invest in loans; consider why you should invest at all. There are many reasons why you should invest, such as saving up for your retirement, an apartment, or maybe a car. To reach your goal you can, for example, invest in shares, funds, real estate, or loans. For best results, regardless of what you invest in, you of course need to ensure you get a return.

How much your investments grow, depends largely on: 

  • How long you allow your investments to grow
  • If you reinvest your return (resulting in compound interest)
  • What risks you are willing to take. Higher risks tend to generate a higher return, but also carry a higher risk of losing some money as well.

All investments come with some sort of risk, and in order to decrease your overall risks, it is important to diversify your portfolio. This is done, for example, by spreading your capital across industries, markets, sectors, and investment types. This way, you do not put all your eggs in one basket. Investing in peer-to-peer loans (also called P2P or peer-2-peer) with SaveLend, where this diversification is a built-in feature, is thus an excellent way to spread your risks.

What return can you get?

Since the launch of Savelend's platform in 2014, our investors have received an average return of 13.82% per year on their invested capital.

The stability of investing in peer-to-peer with SaveLend, compared to other loan type, is clearly shown in the graph below. That being said, remember that historical returns are no guarantee of future returns.

How much should you invest in loans?

You decide how much money you want to invest. The amount you want to invest should be based on what risks you are willing to take, how often you want returns, and how long you want to invest your money. Similarly, you decide if you primarily want to invest in peer-to-peer loans, or if you want to invest in loans as a complement to other investments that you have.

Therefore, we have no fixed minimum amounts at SaveLend. However, we have guidelines and recommendations to make your investments as successful as possible.

  • Invest in loans

    To ensure a balanced risk diversification, our recommendation is that parts of your capital is invested in p2p-loans with SaveLend.

    The remaining parts of your capital can for example be placed in stocks, funds, and other investment types that align with your goals.

  • 200 EUR on your first deposit

    This recommendation is based on achieving a healthy risk diversification on our platform.

    A portfolio should be spread over as many loans as possible, preferably at least 100-200. 1 EUR is the minimum amount that our investment engine SmartInvest can invest in an individual loan. To invest 1 EUR in 200 loans, 200 EUR is needed.

  • 1 EUR per investment

    At SaveLend, you can easily and conveniently invest with the help of SmartInvest, our automatic investment engine.

    The minimum amount that SmartInvest can invest in an individual loan on SaveLend's platform, is 1 EUR.

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Varför ska du investera i SaveLend? - BACKUP

Riskspridning är en viktig faktor för att lyckas med sina investeringar, vilket därmed är viktigt för oss. Vi är unika i Sverige med att erbjuda både fler kredittyper och automatiserade investeringar för att sprida ut kapital. Det innebär både ökad riskspridning samt valmöjlighet för dig som investerare. Välj själv hur ditt kapital ska fördelas bland de kredittyper som finns tillgängliga för investering på plattformen; från exempelvis konsument-, och företagskrediter till fakturaköp och utbyggnad av fastigheter.

Den andra viktiga faktorn för lyckade investeringar är självklart avkastning. Vår historiska avkastning på genomsnitt 13,82 % per år efter kreditförluster och avgifter sedan vi lanserade 2014 står sig bra mot våra konkurrenter. Genom att erbjuda transparens i våra affärsmodeller och en nära kontakt med oss som jobbar här, hoppas vi du ska känna dig som hemma hos oss.

Get started with SaveLend in 4 easy steps:

  1. 1
    Create a SaveLend account
  2. 2
    Make your first deposit
  3. 3
    Use our default settings or customize your own investment strategy
  4. 4
    Your money is invested automatically
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