In past articles, we’ve taken a look at the top European P2P lending platforms, as well as the best P2P lending platforms in the UK. And today, we’ll be taking a look at a new area of the world – Singapore.
If you’re a Singaporean investor and you’re looking for a unique way to invest your money, peer-to-peer lending is a great choice. We’ll be taking a look at the top P2P lending platforms in Singapore in this article. By the time you finish it, you’ll be able to choose the one that’s right for you.
The history of modern P2P lending starts in 2005, when UK-based Zopa first launched. In the following years, P2P lending platforms began appearing all across Europe and Asia. This includes Singapore.
Today, there are a few different P2P lending platforms based in Singapore. We’ll take a look at each one of these top companies in this article.
We will rank all of the best p2P lending sites in Singapore by four criteria, which we use in all of our reviews. This includes:
- Returns – This measures the overall annual rate of returns you can expect from a P2P platform.
- Diversification – This measures the diversity of loan types, durations, values, geographical areas, and more.
- Features – This includes things like minimum investment as well as the presence of features like a secondary market, buyback guarantee, and auto-invest features.
- Interface – This metric measures how easy it is to use the website, deposit money, invest, withdraw gains, and so on.
Without further ado, let’s get started and begin looking at the best P2P lending platforms in Singapore.
1. Funding Societies
Funding Societies was founded in Singapore in 2015, and has quickly risen to the top of the back when it comes to Singaporean P2P lending platforms. It has funded more than S$840.3 million in loans, and attracted a huge number of investors.
Funding Societies primarily focuses on business loans for companies in Singapore. The interest rate on investments varies between 12-16%. The annual average return is 11.73%, which is pretty good. Most of its loans are under 12 months in length. The minimum investment is just S$20.
Funding Societies has an attractive, well-designed website. It also has an easy-to-use autoinvest feature which lets you automate your investments. It lacks a secondary market or a buyback guarantee.
The two best things about Funding Societies are its wide range of short-term business loans and low minimum investment. The two worst things about Funding Societies are a lack of diversity in its loan products, and its lack of a buyback guarantee.
MoolahSense first was founded in 2013 in Singapore, and it offers both business loans and receivables loans. It has more than 15,081 investors who have poured more than S$74,380,000 into the platform. This makes it one of the larger P2P lending platforms in Singapore.
Its return rates range from 4.8%-16.8%, depending on your risk tolerance. The average annual returns are around 9.90%, which is above-average for most P2P lending platforms both in Singapore and in the rest of the world. You can get started with S$100.
Its website is attractive and easy to use. It has an auto-invest feature which lets you put your money into loans automatically based on a number of factors. These include desired interest rate, loan term length, and so on. It also has plenty of tools to help you dig into the performance of your portfolio. It lacks any buyback guarantee or secondary market, though.
The two best things about MoolahSense are its wide range of loans with different risk profiles, and its easy-to-use website. The two worst things are its relatively expensive minimum investment of S$100, and its lower overall returns compared to Funding Societies and Crowdo.
Crowdo was founded in 2012 in Singapore, making it one of the oldest and most reputable P2P lending platforms in the country. It’s open to investors globally, except those based in the USA.
It accepts currencies including SGD, MYR, IDR, and USD. In total, it has more than 40,000 investors.
Primarily, Crowdo focuses on business loans. Its return rate varies from 12-30%, with the average annual return rate being about 21.10%. This is very high compared to some of the other picks on this list.
The minimum investment for Crowdo is 100,000 IDR (About 10 SGD), so you can get started with a relatively small investment. Crowdo has an auto-invest feature. It lacks other top features like a secondary market. It has no buyback guarantee.
The Crowdo website is easy to use. It even offers a mobile “Crowdo Connect” app which allows you to invest on mobile devices, and has a really good user interface.
The two best things about Crowdo are its low minimum investment and its high rate of returns. The two worst things about it are its relatively high-risk loans, and its lack of loan diversity.
Other top global P2P lending platforms available in Singapore
Unfortunately, there are not a ton of Singaporean P2P lending platforms available yet. Your options are a bit more limited compared to the UK or Europe, for example.
However, there are some P2P lending platforms that operate globally. They are not based in Singapore, but are open to Singaporean investors. They offer you the opportunity to diversify your portfolio. By using a global P2P lending platform, you can find more unique investment opportunities.
Next, we’ll look at three of the best P2P lending platforms that are available in Singapore, and offer investors opportunities to put their money to work across the globe.
Mintos was first founded in 2015, and it’s based in Latvia but is open to investors from all over the world. It has more than 163,000 investors who have provided more than €2.8 billion in loans. It offers consumer, business, car, pawnbroking and receivables loans. This provides you with a good amount of loan diversity.
Its returns are really good, ranging from 5.5-20%, and averaging 12.23% per year for most investors. It also has fantastic features like a secondary market which lets you buy/sell loans, an available buyback guarantee, and auto-investing.
The best thing about Mintos is its great overall return rates. The worst thing about it is that the sheer volume of loans can make it hard to invest manually.
Choose the best P2P lending platform in Singapore & get started!
With this list of the best P2P lending platforms in Singapore and globally, you’ll have all the information you need to start investing. So pick a platform you like now, sign up, and get started in the lucrative world of P2P investing today – you won’t regret it!