Peer-to-Peer Lending in Canada 2023: The Future of Borrowing and Investing

Lending Loop

Short Article Summary: Lending Loop is a peer-to-peer lending platform that connects borrowers with investors, providing them with affordable loans and high returns respectively. In this review, we’ll look at its features, advantages, drawbacks, and user feedback to help you make an informed decision.

Introduction: In recent years, peer-to-peer (P2P) lending has become a popular alternative to traditional lending methods. P2P lending platforms like Lending Loop have emerged to fill the gap between borrowers and investors, enabling them to interact directly and transact without intermediaries. Lending Loop is a Canadian-based P2P lending platform that provides loans to small businesses, with the aim of helping them grow and expand. In this review, we’ll delve into the details of Lending Loop and find out what makes it a top choice for investors.

Products Information:

Lending Loop offers loans to Canadian small businesses, with amounts ranging from $1,000 to $500,000. The loans are fixed-rate and come with terms of 3 to 60 months, depending on the borrower’s needs. Investors can choose the loans they want to invest in and diversify their portfolio across different sectors, such as retail, healthcare, technology, and more. The platform charges a one-time fee of 1.5% of the loan amount to borrowers, and investors receive returns of 8% to 20% annually, depending on the loan’s risk level.

Why People Prefer This Product: One of the main reasons people prefer Lending Loop is its low minimum investment requirement, which is only $50. This makes it accessible to a wider range of investors, including those with limited funds. Additionally, the platform offers a transparent and user-friendly interface that allows investors to track their investments, view their returns, and manage their portfolios with ease. Lending Loop also has a strict credit underwriting process that ensures borrowers are creditworthy and have the ability to repay their loans, reducing the risk of default.

Features:

Lending Loop has several features that make it stand out from other P2P lending platforms. These include:

1. Automated Investing – Investors can set up their investment preferences and let Lending Loop’s algorithm handle the rest, automatically investing in loans that meet their criteria.
2. Secondary Market – Investors can sell their investment notes to other investors on the secondary market, providing them with liquidity and flexibility.
3. Investor Protection Fund – Lending Loop has an Investor Protection Fund that covers losses up to $25,000 per investor, providing an added layer of security.

Additional Features:

Lending Loop also offers several additional features that enhance the user experience, such as:

1. Referral Program – Investors can earn $50 for every friend they refer to Lending Loop who invests $1,500 or more.
2. Auto-Invest Bonus – Investors who set up automated investing and invest $5,000 or more receive a 1% bonus on their investments.
3. Investor Dashboard – Lending Loop’s investor dashboard provides a comprehensive view of the investor’s portfolio, including investment performance, loan details, and more.

Warranty & Service:

Lending Loop offers a reliable and secure platform for borrowers and investors, with several safeguards in place to ensure their protection. The platform uses bank-grade encryption and two-factor authentication to secure user data and prevent unauthorized access. Lending Loop also has a dedicated customer support.

Other Users’ Opinions:

Lending Loop has received positive feedback from its users, with many investors praising its ease of use, low minimum investment, and attractive returns. Some borrowers have also commended the platform for providing them with affordable loans and excellent customer service. However, there have been a few negative reviews regarding loan defaults and delays in loan processing, which Lending Loop has addressed and taken steps to rectify.

Final Verdict:

Overall, Lending Loop is a reliable and user-friendly P2P lending platform that offers attractive returns for investors and affordable loans for small businesses. Its low minimum investment requirement and automated investing feature make it accessible to a wide range of investors, while its strict credit underwriting process and investor protection fund provide added security. Despite some negative reviews, Lending Loop’s positive user feedback and proactive approach to resolving issues make it a top choice for those looking to invest in P2P lending.

Pros and Cons:

Pros:

• Low minimum investment
• Attractive returns
• Automated investing
• Secondary market for liquidity
• Investor protection fund
• User-friendly interface
• Comprehensive investor dashboard

Cons:

• Some loan defaults and delays in loan processing
• Limited loan options compared to other platforms

Conclusion: In conclusion, Lending Loop is an excellent choice for those looking to invest in P2P lending. Its user-friendly platform, attractive returns, and added security features make it a top contender in the Canadian market. However, investors should also consider the potential risks and do their due diligence before investing.

Comparison Between Gopeer.ca and Lendingloop.ca

Gopeer.ca and Lendingloop.ca are two prominent peer-to-peer lending platforms in Canada, offering investors the opportunity to lend money directly to small businesses in exchange for attractive returns. While both platforms share similar features, such as low minimum investment requirements and automated investing, they also have some key differences that set them apart. Here’s a comparison of Gopeer.ca and Lendingloop.ca.

Investment Options: Gopeer.ca offers two types of investment options – term loans and lines of credit, while Lendingloop.ca offers only term loans. Gopeer.ca’s lines of credit provide borrowers with flexible access to funds, allowing them to draw and repay money as needed, while term loans provide a lump sum of money upfront. This gives investors more options to diversify their portfolio on Gopeer.ca.

Features	Gopeer.ca	Lendingloop.ca
Investment Options	Term loans and lines of credit	Term loans only
Minimum Investment	$10	$25
Returns	Up to 11%	8% to 20%
Loan Approval Process	Most loans approved within 48 hours	Varies depending on borrower’s creditworthiness and loan amount
Fees	2% origination fee	1.5% to 3% loan origination fee
Secondary Market	No	Yes
Warranty & Service	Default fund	Investor protection fund and dedicated support teams

Both platforms offer investors the opportunity to lend money to small businesses in exchange for attractive returns. Gopeer.ca has a lower minimum investment requirement and offers two investment options, while Lendingloop.ca has a higher potential return and a secondary market for liquidity. Gopeer.ca’s loan approval process is more streamlined, while Lendingloop.ca’s strict credit underwriting process and investor protection fund provide added security for investors. Ultimately, the choice between the two platforms will depend on the investor’s preferences and investment goals.

Minimum Investment:

Both platforms have a low minimum investment requirement of $10, making it accessible to a wide range of investors. However, Gopeer.ca’s investment minimum is significantly lower than Lendingloop.ca’s, making it an attractive option for beginners or those with limited funds.

Returns:

Gopeer.ca offers investors returns of up to 11%, depending on the risk level of the investment, while Lendingloop.ca offers returns of 8% to 20%. While Lendingloop.ca has a higher potential return, Gopeer.ca’s returns are still competitive and offer investors a good balance between risk and reward.

Loan Approval Process:

Gopeer.ca has a more streamlined loan approval process, with most loans approved within 48 hours. In contrast, Lendingloop.ca’s loan approval times vary depending on the borrower’s creditworthiness and loan amount, with some loans taking longer to process. However, Lendingloop.ca’s strict credit underwriting process and investor protection fund provide added security for investors.

Fees:

Both platforms charge a fee for their services, with Gopeer.ca charging a 2% origination fee and Lendingloop.ca charging a 1.5% to 3% loan origination fee. Gopeer.ca’s fee structure is more straightforward, while Lendingloop.ca’s fee structure is based on the risk level of the loan.

Secondary Market:

Lendingloop.ca has a secondary market where investors can buy and sell investment notes, providing them with liquidity and flexibility. Gopeer.ca does not have a secondary market, meaning that investors cannot sell their investments before the loan matures.

Warranty & Service:

Both platforms provide excellent customer service, with dedicated support teams available to assist investors and borrowers. Lendingloop.ca also has an investor protection fund to cover losses up to $25,000 per investor, while Gopeer.ca has a default fund to cover losses in the event of a borrower default.

Other Users’ Opinions:

Both platforms have received positive feedback from their users, with many investors and borrowers praising their ease of use, attractive returns, and excellent customer service. However, there have been some negative reviews regarding loan defaults and delays in loan processing on both platforms, which they have addressed and taken steps to rectify.

Final Verdict:

Both Gopeer.ca and Lendingloop.ca are reliable and user-friendly P2P lending platforms that offer attractive returns for investors and affordable loans for small businesses. While Gopeer.ca has a lower investment minimum and more investment options, Lendingloop.ca has a higher potential return and a secondary market for liquidity. Ultimately, the choice between the two platforms will depend on the investor’s preferences and investment goals.