If you’re an investor interested in exploring the world of P2P lending, this Monestro review is sure to help. We’ll take a look at the specifics of this P2P lending platform, discuss its benefits, returns, and features, and help you decide if it’s a good choice for your hard-earned capital. Let’s get started now.
The basics & history of Monestro
Monestro is an Estonia-based P2P lending platform which was first founded in 2014. Since then, it has attracted more than 951 investors, and funded a total of more than 7,869 loans.
Mostly, Monestro focuses on high-interest consumer loans. It is available to investors in the European Union. Investments are made in EUR and loans are issued in EUR. It’s a good option for investors looking to diversify their portfolio with loans in multiple countries.
Monestro investment returns – Extremely high returns
The investment returns available at Monestro are sky-high. Interest rates range from 6%-39% based on the creditworthiness of the individual loan. The average reported return for investors is about 26%.
These high returns come at a cost, though. Most borrowers will have to pay extremely high-interest rates, and some of these loans may be unaffordable, resulting in a higher rate of default. It also does not have a buyback guarantee (more on that later), making it very risky to invest. The returns are great, but you must be aware of these risks before you invest with the Monster P2P lending platform.
Monestro loan diversification – Decent loan diversity
Monestro offers loans in a variety of different countries including Germany, Estonia, Switzerland, the UK, Germany and Spain. It exclusively offers unsecured consumer loans. However, these loans have a wide diversity of interest rates, and are available in lengths of 3-24 months.
This means that even though you’re limited to consumer loans, you have a lot of options. There are hundreds of loans available at any given time. It’s easy to create a balanced portfolio. However, we still recommend using other European P2P lending platforms in addition to Monestro to diversify your investments.
Monestro features – Secondary marketplace, auto-invest
Monestro has some good features, like an auto-invest feature. This lets you automatically invest your funds into loans that meet your requirements. It also has a very low minimum investment of €10. Depositing money is also very easy with a bank transfer.
In addition, it has a secondary market. Here, you can buy and sell loans at any time, which means it’s easy to get out of loans early, or purchase more loans for your portfolio.
It doesn’t have a buyback guarantee, though. This exposes you to a lot of risk, given the high-interest rates of the loans that Monestro offers.
Monestro user experience – Could use improvement
The overall user experience is a bit complex. Signing up, verifying your identity and making your initial investment is not a straightforward process, and we also ran into some issues with page loading times when viewing individual loans.
Setting up the auto-invest feature is also pretty complex, so you may have some issues managing your account if you’re new to P2P investing platforms. We’d like to see Monestro work on this, and make its platform more approachable for new investors.
Should I use Monestro? Risks & recommendations
Based on what we’ve found in our Monestro review, we would say that Monestro is more risky than most other P2P lending platforms like Envestio, Grupeer, and Mintos.This is because, while its returns are very high, its default rate is also extremely high, and there is no buyback guarantee. If you don’t choose investments wisely, you could end up losing money. Monestro is also a newer platform and lacks transparency about its profitability, so there is not a lot of reassurance about its ability to stick around in the long-term.
If you have an appetite for risk, it’s a decent choice. But if you want to safeguard your capital, it may not be right for you.