The Norwegian Market for Crowdlending
In 2019, the total Norwegian market for crowdfunding reached a yearly funding volume of NOK 442 million (~€38.4 million). This corresponds to a yearly growth of 72.2%, up from NOK 256.7 million in 2018. Out of the funding volume raised in 2019, 75% came from investment crowdfunding models, which consists of the three peer-to-peer lending business models – P2P business lending, P2P consumer lending, and P2P property lending – and equity crowdfunding. The remaining 25% came from reward-based crowdfunding and donation-based crowdfunding, which are both (as their names imply) non-investment business models.
Best Peer-to-Peer Lending Platforms in Norway
Here, you will find a list of the best peer-to-peer lending platforms in Norway. When choosing the best peer-to-peer lending sites in a country we consider a variety of factors that you can find in the Methodology below.
More P2P Lending Platforms in Norway
Below, you will find a list of the remaining peer-to-peer lending platforms located in Norway. If a new platform has been launched since this article was published and you do not see it here, please feel free to submit the platform by using the submit formula.
Statistics on Crowdfunding and Peer-to-Peer Lending in Norway
The latest data on the whole crowdfunding and peer-to-peer lending market in Norway is presented by the Crowdfunding Research Center at the University of Agder (UiA), where market data on crowdfunding in Norway is published on an ongoing basis. Thus, the latest full-year data available is from 2019. Another valuable source of data to visit for a view on the historical development of alternative finance, crowdfunding and P2P lending in Norway is the Cambridge Centre for Alternative Finance, who published their first report on the European market for alternative finance in 2015. However, because the report uses survey data the latest data available is from 2018.
Using the data collected by UiA we find that the total funding volume raised by Norwegian crowdfunding platforms in 2019 was NOK 442 million or €38.4 million. This represents a growth of 72.2% compared to 2018 where the total market was NOK 256.7 million. The year before, in 2017, the market saw an even more impressive development, growing 172.7% from NOK 94.1 million to NOK 256.7 million. Below you will find a figure showing the overall development in Norwegian crowdfunding from 2012-2019. The figure contains data on peer-to-peer lending (property, business, and consumer), equity crowdfunding, donation crowdfunding, and reward crowdfunding.
If we zoom in on 2019, the funding volume was distributed between the different crowdfunding business models as follows:
Crowdlending in Norway in 2019 represented 61.8% of the total crowdfunding market and consisted of P2P property lending, P2P business lending, and P2P consumer lending. The largest of the three business models was P2P property lending with a funding volume of NOK 137.9m, followed by P2P business lending with NOK 119.3m. The smallest of the three crowdlending business models was P2P consumer lending with a modest funding volume of NOK 15.9m. The Norwegian crowdlending platforms included in the data were Monner, FundingPartner, Kameo Norway, Perx, and Kredd.
Taxation on Crowdlending in Norway
Interest earned from crowdlending (peer-to-peer lending) is taxed as interest income, just as other types of interest earned. In 2020, the tax rate for interest was 22%. The return is subject to taxation in the same year as it is earned, regardless of whether you reinvest the interest in new loans. Remember, the repayment of the principal is not subject for taxation (other than maybe wealth tax), so it is possible to invest this in new loans without worrying about additional tax occurring on these funds. Many platforms report your loans and interest income directly to the tax authorities but remember to always verify that the numbers are correct.
Regulation on Crowdlending in Norway
To conduct financing activities in Norway, you generally need a license as per the Financial Entities Act §2-1, and this is also true for loan brokerage. However, crowdlending platforms often qualify as a loan intermediary, which means they are required to register with the Norwegian Financial Supervisory Authority in accordance with §2-18 of the Financial Entities Act. Thus, platforms only need authorisation as a bank or financing company if they also conduct financing activities.
Right now, a process is taking place where the Norwegian government is looking at new initiatives on how to regulate debt-based crowdfunding in Norway. However, there is a wide degree of disagreement from many actors within the Norwegian crowdfunding scene, who do not agree with the proposal put forward.
You can read more about the current regulation in Norway, the regulation proposal put forward by the government, and how the regulation might play out in the future here (link in Norwegian).
At P2PMarketData we are dedicated to providing an unbiased overview of the Peer-to-Peer Lending market and platforms. Among other, in our mission to bring more transparency to the market for online lending we track over 70 platforms funding volumes.
When choosing the best platforms in a country we have considered a variety of factors such as:
- Number of investors
- Minimum investment requirement
- Historical annual returns
- Diversification opportunities
- Reinvestment opportunities
- Educational and informational offerings
- Platform fees
- Total capital invested
- Features (such as secondary market and automatic investing)
- General transparency (the difficulty of finding who the owners are, how they make money on the platform (fees), terms & conditions and more)
- Management team
We also look into the company’s online reputation (for example customer reviews, news, complaints, average monthly searches and social media).