Investing guide

Invest in P2P lending — a guide

Peer-to-peer lending is a popular fixed-income investment among Finnish investors, typically returning 6–12% per year. Here’s how to start, the risks, and whether it’s worth it.

I need a loan I invest

Short answer: is P2P lending worth investing in

It is worth it only if you understand that the return comes from carrying credit risk and from nothing else. Peer-to-peer lending is not an interest product where you are paid for the passage of time — it is the sale of risk. A nominal rate of 12 per cent does not mean a 12 per cent return, because some loans go unpaid. Realised net return after credit losses and fees has typically been 4–9 per cent on Finnish platforms.

The decisive question is not “what interest do I get” but “what is the expected return once the loss rate is subtracted”. The arithmetic is simple: nominal rate, minus annual credit losses, minus platform fees. At a 12 per cent rate with 5 per cent losses and a 1 per cent fee, 6 per cent remains before tax and 4.2 per cent after capital income tax. That is the figure to compare with other investments.

A direct agreement with a private individual removes the platform fee but also removes diversification. In a single loan there is no average: either you get everything back or you do not. Direct lending therefore suits only capital you can afford to lose. Vertaislaina24 is a classifieds board — we do not handle funds, we do not score applicants and we do not run collection.

Overview of the topic

A P2P loan is an investment form where a private individual lends to another private individual for interest. In Finland the investor annual return in recent years has been 6–12% after fees and defaults.

P2P investment platforms (Fixura, Fellow Finance, AuroraX) diversify your investment automatically across many loans. Minimum investment is typically €25–100. Vertaislaina24 works differently — here the investor picks a single listing and negotiates terms directly with the borrower.

For the investor, P2P lending is higher-yield but riskier than a bank deposit. Defaults can eat the return and principal can suffer. Diversifying across many loans is essential.

The investor’s routes in numbers

The same capital on four routes, parameters in columns
Route	Minimum	Gross rate	Expected credit loss	Estimated net return	Work required
Platform, automatic diversification	€25–100	8–15 %	4–8 % p.a.	4–8 %	Minimal
Platform, hand-picked loans	€25–100	10–18 %	5–10 % p.a.	4–9 %	Moderate
Direct agreement, secured	€1,000 upwards	6–12 %	low if collateral realises	5–11 %	High: contract and monitoring
Direct agreement, unsecured	€200 upwards	10–25 %	high, all or nothing	−100 % … +20 %	High: collection too
Benchmark: fixed-term deposit	€1,000	2–4 %	no credit risk	1.4–2.8 % after tax	None

Net return is stated before capital income tax, which is 30 % up to €30,000 and 34 % above that. The figures are orders of magnitude from market practice in August 2026, not a promise of return. Model your own scenario with the calculator.

What realised returns have been in Finland

There is a systematic gap between the return statistics platforms publish and the figures investors report, and it comes down to method. A platform often reports the yield on performing loans, so credit losses that only crystallise later are not yet included. An investor’s own realised return is calculated when the book has been fully repaid or written off — and it is almost invariably lower. A working rule of thumb: subtract two to three percentage points from the published figure before comparing it with anything else.

A second phenomenon is the vintage effect. On the same platform, loans originated in different years show markedly different loss rates, because lending criteria and the economy change. In 2022–2024 rising rates and tighter household finances lifted payment difficulties broadly, which showed in the results of everyone financing consumer credit. One year’s return therefore does not predict the next.

The third thing many learn only afterwards is liquidity. A peer-to-peer investment is tied up for the loan term unless the platform runs a functioning secondary market. Secondary market depth varies, and in a poor market a sale only goes through at a discount. In a direct agreement there is no exit at all before the due date — an agreement cannot be “sold” unless an assignment right has been written into the note, as covered on loan agreement terms.

Source: Public return reports from Finnish P2P platforms, Bank of Finland monetary financial institution statistics and Tax Administration guidance on capital income; data checked in August 2026.

Building a peer-to-peer portfolio

The order is designed so that no money moves before the risk level is known. Most disappointments come from skipping the first two steps.

1
Decide a risk budget, not an investment sum

Ask first how much you could lose entirely without it changing your life. That figure, rather than a target return, sets the size of the portfolio. Peer-to-peer lending does not belong among emergency savings or a house deposit.
2
Work the expected return out in full

Nominal rate, minus expected credit loss, minus fees, minus tax. If the result does not clearly beat the risk-free alternative, taking the risk is not justified.
3
Diversify by count, not by sum

Twenty investments of €50 survive one default; one investment of €1,000 does not. The benefit of diversification comes from the number of loans — it is the only free protection an investor gets.
4
Assess the counterparty in a direct agreement

Ask the applicant for a pay slip, a bank statement and their own credit report. Ask about the purpose and about other debts. There is no shortcut here — a board does not do this for you.
5
Always require a written promissory note

Without a signed note, collection is practically impossible even with a visible bank transfer. Use the structure on loan agreement terms and consider witnesses above €5,000.
6
Track and record for tax

Note every interest payment with its date. Interest is capital income declared in your tax return — no withholding is made for you when the counterparty is a private individual.

Route planner: three questions, one recommendation

Peer-to-peer lending is not a single product but a set of different routes. Answer three questions to see which route fits your situation and what to read next. The tool collects nothing and sends nothing to a server — everything runs in your browser.

Question 1.Which side of the table are you on?

I need money I have money to invest I am writing an agreement for someone I know

Question 2.What size of sum are we talking about?

Under €2,000 €2,000–15,000 Over €15,000

Question 3.How does the credit record look?

Clean There is a payment default Do not know / not relevant

Recommended route

Answer all three questions to see the recommendation.

Below €2,000 an arrangement fee eats the largest relative share of the loan. Write a listing that states the purpose and the repayment dates, and work out the total cost with the loan calculator before you agree on a rate. Background: how P2P lending works in Finland.

The most common P2P range. Compare the platforms’ real annual cost against your own offer first: Fellow Finance, Fixura. If you want to agree directly, write the agreement terms down before any money moves.

Above €15,000 collateral and witnesses are not a formality. Go through the contract terms clause by clause and check the risks on both sides before signing.

With a small pot, diversification is the only protection you have. Do not put everything into one listing — read how to calculate expected return and credit losses and follow the active listings before the first agreement.

At this size it is worth comparing platform investing and a direct agreement side by side: the platform handles collection, a direct agreement leaves the whole interest to you. Background: P2P mechanics and AuroraX.

With large sums, collateral and enforceability decide whether you get your money back. Read the terms, the risks, and check what a credit default actually means for the counterparty.

Even a small loan to a friend is worth putting in writing. Use a promissory note structure and add a reference in the bank transfer message field — that is the only proof when memories differ.

Write down the interest, the due dates and the consequence of late payment. Without a written interest the debt is interest-free, and without due dates late-payment interest never starts running. See the wording of each clause.

For a large promissory note, two witnesses and collateral are the practical minimum. Read the agreement terms and the risk list before signing.

A clean credit record is a negotiating asset: say plainly in the listing that there are no entries, and the other side dares to offer a lower rate. The cheapest route is still usually a bank consumer loan — put that out to tender first and use P2P only if the terms are not acceptable.

A payment default closes the bank and most platforms, because they run an automatic credit check. On a classifieds board a default does not block publishing, but honesty pays: read what options remain and how to word the listing.

If you do not know the state of your credit record, check it before applying for anything. You can obtain your own credit data free of charge once a year from the register keeper. After that you know whether to go to a bank or straight to the listings board.

What is required of an investor

Peer-to-peer investing requires no licence and no professional background, but four things must be in place before the first euro moves.

Capital you can afford to lose

There is no deposit guarantee and no capital protection. Invest only a sum whose loss would not force you to change your plans.

The ability to assess a counterparty

In a direct agreement the credit decision is yours. That means reading documents and asking uncomfortable questions — if that feels impossible, a platform is the better route.

Willingness to run collection

On an unpaid direct loan the reminders, the court application and the enforcement application are your responsibility. The process takes months and costs money up front — see risks of peer-to-peer lending.

Handling the tax side yourself

Interest income is declared by you. Deductibility of a credit loss is limited and not automatic, so check the tax treatment before you count it into a net return.

When a loan goes unpaid and the debtor refuses to pay

A first late instalment is not yet a credit loss. Most delays are timing problems that resolve with one contact and a new due date. A third consecutive missed instalment with no contact is a different matter: at that point it pays to act formally rather than hope for the best.

The sequence is a written reminder, then a payment demand, then an application to the district court. In an undisputed matter the court issues a default judgment, which is an enforcement title. Only then can the enforcement authority collect. The whole chain typically takes six months to a year and the court fee is paid in advance. In small claims the collection costs can exceed the claim itself — worth calculating before starting.

Make contact right after the first missed payment. Silence is a bad sign, but the first message is usually just a reminder.
Send every reminder in writing and keep it. An oral reminder leaves no trace later.
Check the late-payment clause in the note. Without one, the Interest Act 633/1982 default applies: reference rate plus 7 percentage points.
Consider a payment plan before litigation. A partial payment beats a judgment against a debtor with no assets.
If the counterparty has disappeared or refuses to identify themselves, report it to the police — that is not a credit loss but possible fraud.

Peer-to-peer investing weighed up

Advantages: what this route gives you

+The return is clearly above a deposit if credit losses stay at the expected level.
+Cash flow is steady and monthly, which suits an income-seeking investor.
+Correlation with the equity market is lower than in a share portfolio.
+In a direct agreement the whole interest stays with the investor, with no platform fee.

Drawbacks and limits: where it breaks down

−No deposit guarantee, no capital protection, no supervisory safety net in a private agreement.
−Money is tied up for the whole term — liquidity is poor or non-existent.
−Credit losses cluster in a downturn, exactly when money is needed elsewhere.
−Tax takes 30–34 % of the return while loss deductibility is limited.

Who this is not for

×Emergency savings or money needed within the next few years.
×Anyone who expects the capital to be safe.
×Anyone unwilling to deal with defaults and collection.
×Anyone who would invest borrowed money — leverage on credit risk is a particularly bad combination.

Legal framework: which act governs what

A private individual may lend to another without a licence or registration. The line is professionalism: if lending is repeated and carried on for profit, the activity becomes business, bringing Chapter 7 of the Consumer Protection Act and a registration duty under Act 186/2023 into play. Individual investments do not cross that line, but systematically granting dozens of loans to consumers can.

The position of a claim in insolvency is worth knowing in advance. An unsecured creditor is an ordinary creditor among others, and in a debtor’s debt adjustment the claim can shrink to a fraction or disappear entirely. A pledge or other collateral gives priority — it is the only practical way to improve the position, and it must be agreed before the money moves, not after.

Claims also expire. The general limitation period is three years, interrupted by a reminder or another acknowledgement of the debt. A written reminder is therefore worth sending even when you expect no payment, or the claim can lapse mid-collection. The form and transfer of a promissory note are governed by the Promissory Notes Act 622/1947, and this service’s position is described on legal status.

Key Finnish statutes applying to a loan between private individuals
Act	Number	What it governs	Practical consequence
Promissory Notes Act	622/1947	Form, transfer and limitation of a promissory note	A written note is valid without a notary; transfer requires notice to the debtor
Interest Act	633/1982	Late-payment interest and how the rate is set	Without a contract term, late interest is the reference rate + 7 percentage points
Consumer Protection Act	38/1978, ch. 7	Consumer credit granted by a trader	Does not cover a loan between two private individuals — but does cover anyone lending professionally
Criminal Code	39/1889, 36:6	Usury	A clearly disproportionate rate can be a criminal offence, not merely an invalid term
Contracts Act	228/1929, §36	Adjustment of an unreasonable term	A court can afterwards moderate the interest or the payment terms
Act on Registration of Certain Credit Providers	186/2023	Registration of credit providers and intermediaries	Professional lending requires registration; a classifieds board is not credit intermediation

The table is a general overview, not legal advice. In an individual case, use a lawyer or the municipal financial and debt counselling service.

Spotting a scam before the money leaves

In agreements made directly between private individuals there is no platform background check, so recognising fraud is the parties’ own responsibility. These signals repeat in almost every case we have heard about.

An advance fee before the loan. There is no situation in which receiving a loan requires a “handling fee”, “insurance fee” or “notary fee” paid up front. This is the most common loan scam in Finland.
Urgency and deadlines. “The offer is valid for one hour” is pressure, not a term. A real lender gives you time to read the agreement.
Contact only through a messenger where messages disappear. Ask for every term in writing, by email or in the agreement itself.
The counterparty refuses to give a personal identity code or business ID for the agreement. Without identification a promissory note cannot be enforced.
A request to send money to a third person’s account, in cryptocurrency or on a payment card. A lawful loan is paid by bank transfer to the named party’s account.
For investors: the applicant wants the money immediately but refuses to sign a promissory note. Without a written agreement, collection is practically impossible.

If you suspect a crime, report it to the police. Lender registration can be checked in the register kept by the Regional State Administrative Agency for Southern Finland, and the Finnish Financial Supervisory Authority maintains a warning list of operators without authorisation in Finland. More on this on risks of P2P lending.

A scam aimed at investors looks different from one aimed at borrowers: it promises an unusually high and certain return, asks for funds to be moved to a personal account or a crypto wallet, and pushes for a quick decision. A lawful operator uses a client funds account in the company’s name, and nobody can promise a return as a certainty.

How the listings board actually works

Vertaislaina24 is not a platform that slices loans into pieces and runs the payments. It is a classifieds board: you write a listing, the other party gets in touch, and everything after that happens between the two of you. Four steps cover the whole process.

Listing

You state the amount, the term you want, your interest expectation and a short justification. The more concrete the text, the fewer pointless contacts. Prices are on the pricing page.

Contact

The other party contacts you through the service. We do not score either side and we do not recommend anyone — the judgement is yours. You can browse active listings without registering.

Agreement

Terms go into a written promissory note before any money moves. The wording of each clause is on loan agreement terms.

Payments

Money moves directly between bank accounts. The service neither receives nor forwards payments, so the transfer visible on your bank statement is itself your proof of payment.

Vertaislaina24 does not grant loans, does not broker them and takes no part in payments between the parties. We are not a credit institution and not a credit intermediary, and we charge no interest or commission on any loan. The only charge is the fee for publishing a listing.

Glossary: the words the terms are written in

The same thing often goes by three names in P2P discussions. These six terms are enough to read a draft agreement without help.

Nominal interest: The annual rate written into the agreement, excluding fees. Two loans with the same nominal rate can cost very differently if one carries an arrangement fee.
Annual percentage rate: The rate with all mandatory costs included. The comparable figure, which you can work out yourself with the loan calculator.
Annuity: A repayment method where the monthly instalment stays the same and the interest share of it shrinks over time. The most common model in private agreements too.
Late-payment interest: Interest that runs after the due date. Under the Interest Act 633/1982 it is the reference rate + 7 percentage points unless otherwise agreed.
Payment default entry: An entry in the credit information register for a neglected payment. It affects borrowing for years — see what a default actually blocks.
Collateral: Property from which the debt can be recovered if the debtor does not pay. Without collateral the creditor is an ordinary creditor among others.

Frequently asked questions

What is the return on P2P lending? +

The average return for investors on Finnish P2P platforms is 6–12% per year after fees and defaults. In a direct agreement the rate can be higher, but so is the risk.

Is P2P lending income taxable? +

Yes. Interest income is capital income (30% / 34% tax). Losses are deductible under certain conditions.

What is the minimum amount? +

On Fixura and Fellow Finance you can start with €25. In Vertaislaina24 listings the minimum is agreed directly — usually €200–500.

What are the biggest risks? +

Defaults (10–20% of loans may go unpaid), collection costs, loss of principal, legislative risk, platform failure.

Is it worth investing directly without a platform? +

Direct investing is possible but requires more work: assessing the borrower, drafting the agreement, tracking payments and collection. You do save on platform fees.

Can I lose all my principal? +

In theory yes, if all your loans default and collection fails. That’s why diversification is essential.

How is peer-to-peer interest income taxed? +

Interest is capital income: 30 % up to €30,000 and 34 % above that. No withholding is made when the payer is a private individual, so the income is declared by you in your tax return. Record every payment with its date immediately — reconstructing it afterwards is laborious.

Can a credit loss be deducted in taxation? +

Deductibility is limited and not automatic. In practice a deduction requires that the final loss can be demonstrated, for example with an enforcement certificate of impecuniosity. A late payment alone is not enough. Check current Tax Administration guidance before counting it into your expected return.

How many loans should the portfolio be spread over? +

As a rule of thumb at least twenty, preferably more. The benefit of diversification comes from the count: one default must not be able to wipe out a whole year’s return. That is why platforms set minimum investments as low as €25.

Can an investment be sold mid-term? +

On a platform only if a secondary market exists and buyers are present — and often only at a discount. In a direct agreement not at all, unless an assignment right has been written into the note. Under the Promissory Notes Act a transfer also requires notice to the debtor to take effect.

What is a realistic return expectation in 2026? +

On a diversified platform portfolio, 4–8 % before tax once credit losses are subtracted. In a secured direct agreement, 5–11 %. In a single unsecured agreement the dispersion is so wide that an average tells you nothing — the outcome is either the full interest or the loss of the whole principal.

How does an investor’s position differ on a platform and on a board? +

On a platform your counterparty is in practice the platform and its processes: diversification, collection and reporting arrive ready-made and are paid for through fees. On a board the counterparty is another private individual and everything above is your responsibility. Vertaislaina24 does not receive funds and does not forward payments — pricing is on the pricing page.

Start investing in P2P lending

Post an investor listing on Vertaislaina24 and pick borrowers yourself — €10 per listing.