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Envestio have allowed me to offer all my readers a €5 + 0.5% bonus on all investments made in the first 270 days if you sign up using this link.
Envestio has become one of my favorite P2P lending platforms, since I started investing in early 2018.
Envestio caught my interest because of their relatively high historical returns above +19%, so I decided to give it a try with a small amount to being with.
Envestio was initially a private fund from 2014-2017 established in Estonia, but the platform was launched to the public on January 25, 2017 with 55 active investment projects and 16 completed projects.
The platform offers crowdinvesting in different business projects within primarily real estate, energy and crypto mining. Most of the projects have a loan period below 12 months and interest rates vary between 15-22% with an average of ~19.5% at the time of writing. I haven’t seen any other platforms with such high average interest rates, but I am unsure of whether they can keep it up over time.
Envestio has great customer reviews on Trustpilot with a TrustScore of 8.9/10, which is the highest I have seen of any P2P lending platform (only 4- and 5-star reviews, but only from 17 reviews):
Overall, I have been quite impressed with Envestio as a P2P lending platform. I have received an average interest rate around 18%, which I consider very high compared to my 11.9% return with Mintos. Although many things are good with Envestio, everything is not great.
Before you start investing in any platforms, make sure to check out my comparison of the best P2P lending platforms in Europe.
How Envestio’s P2P lending platform works and my first impressions
Envestio’s platform is smooth and easy to navigate. The user interface is easy to understand and making your first investment is straightforward.
Envestio’s platform is a bit different from other P2P lending platforms, since you invest in business projects (loans to businesses with a specific purpose that pay an interest to you, so you essentially become the bank). This is different from other platforms that typically offer smaller consumer loans. Because of this, the investments are typically larger and fewer than you normally see on other platforms making it easy to quickly get a detailed overview of the available projects.
The sign-up process was very easy taking three days from I signed up, had my documents verified and money deposited ready to deploy.
The navigation is easy to understand. “Dashboard” shows you the overview of your account balance and your investments repayment schedule and “My accounts” is very similar just with a bit more detail on the history of your investments.
“Investments” shows your all the available active investments and your own investments with good filtering options. Envestio’s loans are quite popular due to the high interest rates, so while they frequently add new ones, they are also quickly funded. This means you’ll only see a couple of active investments available at a given point in time.
Compared to other platforms, I really like the user interface of Envestio – it is simple and clean, although I don’t really understand why they haven’t combined the dashboard and “my accounts” into one overview.
One of the things I like the most about the platform is the very detailed loan information that makes it very transparent which kind of business activities you are funding. I believe a platform like Mintos (which I also really like) lacks this a lot. I’ll get back to this in a minute 🙂
What has my return been with Envestio so far?
Envestio is the platform I have gotten the highest returns from so far (out of the six P2P lending sites I am currently investing in). Until now, I have managed to get a return of 16.25% annually before taxes. I consider this very good compared to my current stock index returns and other platforms.
Unfortunately, Envestio does not offer a convenient way to get an overview of your annual returns, so you have to calculate this yourself. However, this is relatively easy to do if you use their “Statistics” tool that can generate return reports for certain periods.
This is the overview Envestio gives you:
You see? Not convenient to calculate your annual return. However, this is relatively easy to do if you use their “Statistics” tool that can generate return reports for certain periods for you.
Oh, and I should probably invest those 42 EUR into a project soon. Even though you need to deposit a minimum of 100 EUR, you can invest for as little as 1 EUR per project.
Unfortunately, Envestio does not offer an autoinvest function. I assume this is because the projects are quite few and big, so autoinvesting doesn’t make as much sense compared to sites with many, smaller loans. As an investor, this means you must be a bit more active. The good thing is you get an email each time a new project is open for funding, so that serves as a good reminder to go in and re-invest your money.
How to make the first investments on the platform
Investing on Envestio is very easy. In fact, I was surprised the first time I invested that there wasn’t even a confirmation step before my money was placed in a project.
Envestio gives you the opportunity to invest in different business projects. As I mentioned earlier, I really like how detailed the overview of the loans are. I also like the idea of investing in actual, real business projects that add value to society – and not funding people’s reckless spending as on other P2P lending sites.
Once you navigate to “Projects”, you will see a list of all the active projects. Both the ones that are funded and the ones that are still open to funding:
You see? Real life projects!
Once you click on a loan, you are served a wide range of information. You get a detailed project description, information about the market, the repayment schedule and loan information. I have tried to combine some of the information into one picture, and it looks something like this:
I’m not joking when I say there’s quite a lot of information for every single loan on the platform.
Once you have found a loan you want to invest in, you end up on the investment page. From here, you can choose the amount you want to invest and see the short summary of the loan details such as industry, remaining principal to fund, loan term, interest rate, issue date and closing date:
The investment is placed as soon as you have entered your desired investment amount and clicked on “Invest”.
After investing in a project, the specific project’s repayment schedule will appear on your dashboard together with your other investments. You can always navigate to “My investments” to get an overview of the projects you have invested in.
Should you sell your investments before the project closing date?
Envestio offers the opportunity to exit loans ahead of schedule. The loan terms on Envestio are usually quite short being below 12 months, so I wouldn’t expect many investors to use this feature.
However, it might be a good option if you really need to withdraw your investment fast.
Each loan comes with different conditions, but there is usually a penalty for withdrawing investments early and you lose the interest you have accrued on the loan. Take this example below:
I have invested 100 EUR in a project and if I want to withdraw my investment, I get 95 EUR back. This means I would lose 5% on the investment.
As you can see, this is not an attractive option and should only be used in emergencies. We are here to make good returns, not to pay penalties 🙂
What are the pros and cons of Envestio?
Envestio is one of my favorite P2P lending platforms, although the platform still has some drawbacks.
The main advantages of Envestio are:
- The highest interest rates on the market – my best returns from P2P lending so far
- High transparency with very detailed loan information
- Real-life business projects adding value to society
- Excellent sign-up process and identification confirmation
- Simple and clean interface that is easy to navigate
- Possibility to invest as little as 1 EUR per project
- Possibility to sell investments prematurely
What really sets Envestio apart from competitors is the high average interest rates. At the time of writing, Envestio reports an incredible average annual return for investors of 19.27%. Although the average has declined slightly recently, these returns are still not matched by any other P2P lending platforms.
However, Envestio also has some room for improvement:
- Diversification opportunities lower than other platforms
- No autoinvest feature
- No secondary market and harsh penalties for selling loans prematurely
- No buyback guarantees if borrower cannot repay
- Still a small platform by loans funded
- Statistics reports are in Word (?!) and not Excel
For Envestio, I believe the pros far outweigh the cons. If they can keep up the high interest rates, you’ll see my investing more money there in the future.
What are the risks of investing in Envestio?
You always have risks when you invest your money. This is the same for P2P lending and Envestio. As a rule of thumb, I never invest more than 5-10% of my net worth in high-risk assets such as P2P lending.
If you decide to invest in Envestio, the biggest risks are that either the business borrowing the money cannot repay or Envestio becomes bankrupt. In both cases, legal procedures would kick in and you might/might not get your money back. So far, all my loans have been paid back, but that is not a guarantee for the future. I have decided to spread my investments across different platforms to mitigate this risk.
Who should invest in Envestio?
Envestio is great for new and experienced investors in P2P lending who are looking for some of the highest returns on the market. Investors should never invest more than they are willing to lose though. For new investors, I would recommend using Envestio in combination with another, larger platform such as Mintos to diversify your investments across multiple platforms.
I would not hesitate with recommending Envestio to a friend, although I will keep an eye out on the future average returns to see if they can keep up the good work.
My Envestio review conclusion
Envestio is one of my favorite P2P lending platforms. The average returns are incredible, the loan information is highly detailed offering great transparency and the platform has all the essential functionality. The team behind Envestio still has opportunities to add more, advanced features in the future, but it is not something that should keep you from investing today.
Note: A few images have been edited and details omitted to maintain my anonymity, but all opinions are 100% honest and unbiased.