Loanch Review 2024: a Promising P2P Lending Platform with High Yields
Last Update: Tue, Jan 16 2024
I love to diversify my Peer-to-Peer lending investments on as many great platforms as possible, which is why I continuously review new platforms & share my experiences with those platforms on my site. In this article, I will review the Peer-to-Peer lending platform Loanch, which I added to my portfolio in late 2023.
In the article, I will tell you what I think are the biggest strengths (and weaknesses) of the platform, how to start using it, and what you can expect from investing on the platform. Let's start!
What is Loanch?
As for all Peer-to-Peer lending platforms, Loanch is a financial platform that allows investors to invest in loans, along with other investors in order to get interests payments over time. Loanch is a relatively new platform, as it was launched in 2023. The company is incorporated in Hungary.
What I really like about this platform is that they offer high interests rates, above 13%. They also focus on complete safety for investors, for example by providing a 30-day buyback guarantee, compared to the 60-day period which is the market average. They also provide complete automatisation of the investment process, which is of course something I will verify in this review.
They mostly use loan originators in Asia, which is something I will explore more later in the review.
Having just launched, there is not a lot of historical statistics available at the moment about their number of users or amount of loans funded, but they already posted some data about their current investors & loans funded:
What returns can I expect from investing on Loanch?
The returns you can expect on Loanch will of course depend on which loans you invest in. Currently, with the information from their loan originators listed on the platform you can get up to 13.6% of annual returns, and they advertise the same returns on their main page as well.
This is good as it is the above the average that you can get on several similar platforms in the field, and I will of course verify that when I talking about how to get started on the platform.
Of course, reinvesting your profits on the platform will give you a nice compound interest - and also you will get a quite good liquidity in your portfolio as most the loans present on the platform are short-term (some around 60 days), which is something I really like to see on a platform.
Is it safe to invest on Loanch?
The question of the safety of the investors funds is central when investing on a Peer-to-Peer lending platform, as they will be managing all the money that you deposit on the platform and invest it in the loans. When reviewing a new platform before adding it to my portfolio, I look at three things: what the platforms offers in terms of guarantees, the company itself (and their team), and finally the sources of the loans present on the platform (loan originators).
Risks & guarantees on Loanch
On Loanch, all loans present on the platform are coming with a buyback guarantee - meaning that if someone doesn't pay back his loan, after a period of time the loan will be automatically bought back by the loan originator and the money returned to the investors. This is now pretty standard on several platforms, but it is definitely something good to have for the security of your investments.
Here, the buyback period is of 30 days, which is lower than the 60 days period which is the norm on other European platforms. It means that even if something goes wrong with a loan, you won't have to wait more than 30 days to get your money back.
They also use segregated accounts - meaning that the money deposited by investors and that is used to fund loans is on another account than the company main account. This should be the standard on all platforms, but it's nice to see it written here.
They also put security as a priority of the platform - having for example a fully automated identity verification process, as well as following all the regulations in terms of GDPR.
The company & the team
As I mentioned earlier, the company is incorporated in Hungary. As for all platforms I add to my portfolio I checked if the company was officially registered in Hungary, and it is indeed.
It was also very easy to find information about their team, which is something I really like to see on such a platform.
As for all the platforms I invest on, I checked the profiles of the management team of the platform to see their experience in the field. Especially here, as they put the experience of their team as a strong argument for the performance and reliability of the platform.
And indeed, they do have a really good team. Their CEO for example, Nikita Sinickis, has a unique background which is a mix of project management, engineering and finance. Indeed, with an education in engineering with a focus on business finance, and then experience in the insurance field & project management, he has the required skills to run such a platform. For him, launching this platform was a natural progression in his career, fuelled by him becoming an active investor in 2016 and his exposure and interest gained during his professional career while working on several projects in a start-up providing white-label solutions for P2P platforms.
They are also partners with Finriser, a SaaS platform that is powering several platforms in the field, some that I know for a long time, so that's definitely a good sign here.
So definitely a strong team of professionals with a lot of experience in the fintech & banking fields, which is a really good point for this platform.
Note that as several other platforms in the field, they also have a Telegram chat on which you can talk directly to their team.
I always checked where the loans are coming from on a platform, as this is really important for the security of your investments. For example, they are responsible for paying the buyback guarantee that I mentioned earlier, so it's critical to make sure a platform is transparent about their loan originators before investing.
In the case of Loanch, they currently have three loan originators based in Asia.
It was also really easy to find more information about the loan originator present on the platform:
Overall, I like the fact they that they provide good transparency about their loan originators, as it was really easy to find more details about each loan originators:
They also do a strong due diligence process on each loan originator, including a background check of the loan originators main shareholders.
Getting started with Loanch
It is actually really easy to get started with Loanch and have your money start generating interests on the platform.
The first step is to open an account and get verified. This was done really quickly, and including the ID verification part it was all done in under 10 minutes.
Next, you will have to deposit funds in your account to start investing in loans and generate interests. This is also really to do with Loanch, as you can do it via a bank transfer.
Once this is done, you can actually start investing in loans on the platform. The platform has an auto-invest function, but you can also browse loans manually:
I could see here that indeed loans have interests rates above 13.5%.
Of course, what I recommend is to use the auto-invest function, which will automate all your investments on the platform.
Here are the settings I used for the auto-invest function:
Once activated, it will automatically start investing in loans for you:
Note that there was a large amount of loans available, which is something I like to see on a platform. For now there is also no secondary market available, but it is not really an issue as many loans are available. The minimum investment on each loan is currently set at 10 Euros. I will of course update this section as the platform grows.
As for all the platforms I review, I also tried to withdraw money, and the money was back on my account in just 1 day, however their FAQ states the money will be back on your account in 2 days.
They also regularly have cashback campaigns, as well as a referral program, which are additional ways to generate income via the platform. For example, they currently have a 2% cashback program that will run till the end of 2023.
My Results so far with Loanch
With the settings that I used on Loanch, I should get returns of around 13.5% annually. It is of course too early to talk about long-term yields on the platform, but I can say that so far everything went smoothly and I will definitely invest more on the platform in the future.
Should you invest on Loanch?
I can definitely say that I enjoyed using Loanch an investment platform. The platform has decent yields, there is a nice 30-day buyback guarantee on loans, and the platform is also fully transparent about their loan originators. I really like the fact that they focus on short-term loans, which is something I really like to see on a platform as it brings a nice liquidity in your investments. The platform is also well-built and was really easy to use.
I would have liked to see even more loans originators for more diversification on the platform, and more features like a secondary market, but that will probably change as the platforms expands and grows in the future.
For all those reasons, I can really recommend trying out Loanch and adding it in any investment portfolio.