In the European Union, anyone with a valid bank account can now apply for loans or investments in another country belonging to the EU. As the European peer to peer (P2P) lending is catching fast, it seems to be leading with regards to cross border investing and lending.
This cross border online investing has really opened doors for many people. Some countries may have more investors than others, and due to varying interest rates, such as Germany charging between 9 and 13% on overdraft, there are benefits of higher returns. Germany can now invest in Spain where the interest on investment return is considerably higher. Lendico from Germany is a large player in cross border investing operating in seven countries across the world.
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Cross border investing creating hope for Europe
Berlin based Crosslend is also eager to connect P2P lenders from high interest countries to low interest countries (and vice versa) through investment. With the EU monetary affairs committee meeting in June 2015 proposing plans to support cross border investing, it will soon become far easier all around with regards to investing and lending going forward. After the Eurozone crisis, where many European countries were unable to repay and refinance their government debt, this is especially beneficial, as people from various countries can apply for loans to either help consolidate debt or to expand small businesses. This, in turn, can help boost the economy in some of these countries.
P2P companies getting on board with cross border investing
Looking to the UK and cross border investing, you need to have a UK bank account in order to invest or take out a loan, which holds back only allowing UK residents to take out loans. France’s Prêt d’Union is looking at expanding its cross border investing with a European launch scheduled for 2016. Bondora, based in Estonia, seems to have made significant waves with more than 9000 investors from 37 countries funding €35 million in cross border lending investments, and together with Lendico they are leading the European market. Collectively they are operating right across Europe, in Spain, Finland, Estonia, Slovakia, UK, Germany, France, Italy and many others.
Through CompareLend.com, you are now able to access all the best lending sites and find out how you can either invest or take out a loan in a different country to your resident one. CompareLend.com is the online comparator for peer to peer lending.