P2P Lending in Estonia

The Estonian Market for Crowdfunding

According to data from the latest report by Cambridge Centre for Alternative Finance (CCFA) on the global market of alternative finance and crowdfunding, Estonia had a total funding volume of €142.4 million in 2018, up from €81.2 million in 2017, which corresponds to an impressive growth rate of 75.3%. This places Estonia’s crowdfunding market as number 13 in Europe and as number 28 in the worldwide crowdfunding statistics. The countries topping the list in Europe are the United Kingdom, the Netherlands, Germany, France, and Italy.

Interestingly, Estonia was ranked as number 4 worldwide in terms of funding volumes on a per capita basis with $120.77/per capita only surpassed by Latvia ($132.12), the UK ($155.93) and the US ($186.88), which provides an idea of the relative market size. The high volume per capita is thus indicative of high adaptation, usage, and penetration of crowdfunding in Estonia despite the relatively small total funding volume. Also, Estonia and the two other Baltic states Latvia and Lithuania are home to some of the largest European-based peer-to-peer lending platforms operating on an international scale.

Below, you will find a complete list of all Estonian peer-to-peer lending platforms.

Table of Contents

Best Peer-to-Peer Lending Platforms in Estonia

Here, you will find a list of the top peer-to-peer lending platforms in Estonia. Under each platform, you will find a brief description of the platform and the type of peer-to-peer lending available for investing on the platform. The list is sorted alphabetically, but to promote platforms contributing to transparency in the market, we have placed the platforms sharing data about their funding volume and other relevant statistics on the top. If you see a platform missing, please feel free to submit the platform by using the submit formula located in the sidebar of this page.

Bondora

Bondora facilitates crowdfunding in the area of consumer lending at a minimum investment of €1. The platform offers financing to individuals for buying properties, trips, purchasing and repairing vehicles and reestructuring debt among others. They offer three different investment products; Portfolio Manager, Go & Grow and Portfolio Pro. Bondora was founded in 2008 by Martin Rask, Mihkel Tasa & Partel Tomberg as an Estonian company. The company is located Tallinn, Estonia but they also offer financing to Spannish and Finnish consumers. All loans are in Euro(EUR).

Any natural or legal person of at least 18 years old can invest on Bondora.

Any person above 21, having a bank account in Estonia, Spain or Finland with a regular income and good credit history can apply for a loan on Bondora.

Bulkestate

Bulkestate facilitates crowdfunding in the area of real estate lending at a minimum investment of €50. The platform offers financing to real estate development companies and structures group buying property deals to acquire entire buildings but with individual buyers for each apartment. Bulkestate was founded in 2016 by Igors Puntuss as an Estonian company. The headquarter and company is located Kesklinn, Estonia but they also offer financing to real estate companies in Latvia, Finland, and Ukraine. All loans are in Euro(EUR).

Any company, natural or legal person of at least 18 years old can invest on Bulkestate.

Any company from Latvia, Finland, Ukraine, and Estonia with an investment project description can apply for a loan on Bulkestate.

The project description must contain the following:

  • Requested loan amount
  • Information about the real estate: Valuation, location and photos
  • Description of the use of funds and repayment
  • Introduction and contact information of the borrower

Crowdestor

Crowdestor facilitates crowdfunding in the area of real estate lending and business lending at a minimum investment of €50. The platform offers financing to companies and entrepreneurs for real estate oportunities and business projects such as working capital, construction, adquisition, and renovating among others. Crowdestor was founded in 2017 by Gunars Udris and Janis Timma as an Estonian company. The headquarter and company is located in Riga, Latvia but they offer financing to companies worldwide. All loans are in Euro(EUR).

Any natural or legal person of at least 18 years old with a bank account can invest on Crowdestor.

Any company can apply for a loan on Crowdestor. After the application, the platform evaluates the borrower´s background, their business plans, financial reports and loan security to verify the viability of the loan.

Crowdestate

Crowdestate facilitates crowdfunding in the area of real estate lending and business lending at a minimum investment of €100. The platform offers financing to companies and entrepreneurs for real estate oportunities and business projects such as working capital, construction, adquisition, and renovating among others. Crowdestate was founded in 2014 by Loit Linnupõld as an Estonian company. The headquarter and company is located Tallinn, Estonia but they also offer financing to companies in Latvia and Italy. All loans are in Euro(EUR).

Any natural or legal person of at least 18 years old resident of any country in the world excluding USA and other blacklisted countries* can invest on Crowdestate.

*Afghanistan, American Samoa, Bosnia and Herzegovina, Guam, Guyana, Iraq, Laos RDV, Syria, Uganda, Vanuatu, Iran, Democratic People’s Republic of Korea (DPRK), The Bahamas, Botswana, Ethiopia, Ghana, Pakistan, Samoa, Serbia, Sri Lanka, Trinidad and Tobago, Tunisia, Yemen, Belarus, Burundi, Central African Republic, China, Democratic Republic of Congo, Egypt, Eritrea, Guinea, Guinea-Bissau, Haiti, Lebanon, Libya, Maldives, Mali, Moldova, Montenegro, Myanmar (Burma), Russia, Somalia, South Sudan, Sudan, Ukraine, Venezuela, Zimbabwe, and US Virgin Islands.

Any company registered in and with a bank account in Estonia, Latvia, or Italy can apply for a loan on Crowdestate.

EstateGuru

EstateGuru facilitates crowdfunding in the area of real estate lending and business lending at a minimum investment of €50. The platform offers financing to companies and entrepreneurs for their real estate development projects (residential or commercial developments, renovating etc.) and businesses that can put up real estate as collateral (working capital, business expansion, acquisitions and reestructuring debt). EstateGuru was founded in 2013 by Kaspar Kaljuvee, Marek Partel, and Marko Arro as an Estonian company. The headquarter and company is located Tallinn, Estonia but they also offer financing to companies in Latvia, Lithuania, Spain, Findland and Portugal. All loans are in Euro(EUR).

Any natural or legal person of at least 18 years old with a bank account in the European Economic Area or Switzerland can invest on EstateGuru.

Any company that has real estate as collateral, registered in and with a bank account in Estonia, Spain, Ireland, Finland, Latvia and Lithuania can apply for a loan on EstateGuru.

IUVO Group

IUVO Group facilitates crowdfunding in the area of loan originator lending for real estate loan originators, business lending originators and consumer lending originators at a minimum investment of 10 BGN, €10, 25 RON. The platform offers financing to various loan originators that then find the borrowers for personal loans, real estate loans, secured car loans, business loans and short-term consumer loans. IUVO Group was founded in 2016 by Ivaylo Ivanov as an Estonian company. The headquarter and company is located Harju, Estonia but they offer lending to loan originators in Bulgaria, Romania, Georgia, Poland, Spain, Latvia and Russia. All loans are in Euro(EUR), Bulgarian Lev(BGN), Romanian Leu(RON), Polish złoty(PLN) and Russian Rubles(RUB).

Any company, natural or legal person of at least 18 years old with a bank account in the European Economic Area, Switzerland or third countries that are currently considered as having equivalent AML/CFT systems to the EU can invest on IUVO Group.

No one can borrow directly on IUVO Group, to have a loan on IUVO Group the borrower would have to had borrowed from a loan originator that the platform is collaborating with.

Moncera

Moncera is a peer-to-peer marketplace that facilitates crowdfunding in the area of loan originator lending for consumer lending at a minimum investment of €10. The platform offers financing to various originators under Placet Group and Nordecum that then find the borrowers for consumer loans. Moncera was founded in 2019 by Dmitri Pavlov and Aleksey Telitsyn as an Estonian company. The headquarter and company is located in Tallinn, Estonia and they offer financing to loan originators in Lithuania and Estonia. All loans are in Euro(EUR).

Any person of at least 18 years old residing in EU and with a bank account in a European Economic Area country can invest on Moncera.

No one can borrow directly on Moncera, to have a loan on Moncera the borrower would have to had borrowed from a loan originator that the platform is collaborating with.

Swaper

Swaper facilitates crowdfunding in the area of loan originator lending for consumer lending originators at a minimum investment of €10. The platform offers financing to various loan originators that then find the borrowers the unsecured consumer loans. Swaper was founded in 2016 by Wadoo Finance Group as a Latvian company and later changed to be an Estonian company. The headquarter and company is located Tallinn, Estonia but they offer lending to loan originators in Denmark, Georgia, Poland, Russia and Spain. All loans are in Euro(EUR) or British Pound(GBP).

Any person that is at least 18 years old, resident of a European Economic Area country and has a bank account in EU can invest on Swaper.

No one can borrow directly on the Swaper platform, to have a loan on Swaper the borrower would have to had borrowed from a loan originator that the platform is collaborating with.

TFG Crowd

TFG Crowd facilitates crowdfunding in the area of business lending at a minimum investment of €100. The platforms offers financing for business development, working capital, new investments, and acquisition among others. TFG Crowd was founded in 2018 by Emil Kerimov as an Estonian company. The headquarter and company is located in Tallinn, Estonia but they also have offices in London and Riga and they also offer financing to companies in Germany, Latvia, UK and the united Arab emirates. All loans are in Euro(EUR).

Any company or person of at least 18 years with a bank account in a European Economic Area country can invest on TFG Crowd.

Any company that submits a funding form specifying the kind of loan, the quantity and the country of the borrower among other relevant information can apply for a loan on TFG Crowd.

EvoEstate

EvoEstate facilitates crowdfunding as a real estate investment aggregator at minimum investment of €50. The platform offers financing to European real estate crowdfunding platforms that fund developers for construction, and aquisition among others. EvoEstate was founded in 2019 by Audrius Visniauskas and Gustas Germanavičius as an Estonian company. The headquarter and company is located Tallinn, Estonia and offer financing to real estate developers in Spain, Austria, Germany, Latvia, Lithuania, and Italy. All loans are in Euro(EUR).

Any natural or legal person of at least 18 years old with a bank account can invest on EvoEstate.

No one can borrow directly on EvoEstate as the platform is an aggregator for real estate crowdfunding platforms. To have a loan on EvoEstate, a borrower would have had to get a loan from a real estate crowdfunding platform that collaborates with EvoEstate.

Monestro

Monestro facilitates crowdfunding in the area of consumer lending at a minimum investment of €10. The platform offers financing to individuals for buying properties, trips, purchasing and repairing vehicles and reestructuring debt among others. Monestro was founded in 2016 by Targo Raus and Jaak Roosipuu as an Estonian company. The company is located Tallinn, Estonia and they exclusively offer financing to Estonian citizens or residents from Estonia. All loans are in Euro(EUR).

Any natural person of at least 18 years old resident in the European Economic Area or Switzerland can invest on Monestro.

Any natural or legal person of at least 22 years old resident of Estonia can apply for a loan on Monestro.

Wisefund

Wisefund facilitates crowdfunding in the area of business lending at a minimum investment of €10, although every loan has its own minimum investment amount. The platform offers financing to European SMEs companies for working capital, acquisition, and business development among others. Wisefund was founded in 2019 by Olga Bobrova as an Estonian company. The headquarter and company is located Tallinn, Estonia but they also offer financing to companies in Poland, Switzerland, Netherlands, Czech Republic, and Germany. All loans are in Euro(EUR).

Any natural or legal person of at least 18 years old with a residency and a bank account in the European Economic Area or Switzerland can invest on Wisefund.

Any limited company, entrepreneur, trader, and partnership with a financing volume of €50,000 or more can apply for a loan on Wisefund.

Taxation on P2P Lending in Estonia

In Estonia, P2P lending is taxed as interest income according to §17 of the Estonian Income Tax Act that says that “(1) Income tax is charged on all interest accrued from loans, leases and other debt obligations, as well as securities and deposits, including such amount calculated on the debt obligations by which the initial debt obligations are increased.” This means that if you are a private investor, P2P lending is subject to a tax rate of 20%. This applies to Estonian residents, whereas foreign investors must pay tax according to the rules of their home country.

In many cases, your chosen investment platform has guides to how you can find the numbers needed for the yearly tax declaration.

Keep in mind that this should not be considered tax advice and can be outdated, why you should always contact a tax adviser when handling your taxes.

Regulation on P2P Lending in Estonia

Estonia has no specific law or regulation that directly addresses P2P lending or other crowdfunding business models. At the same time, there are no common rules for peer-to-peer lending or crowdfunding in the European Union, why it is more general legal acts that affect this space in Estonia. Here, it is worth highlighting the Creditors and Credit Intermediaries Act, which was passed in February 2015. This act imposes an obligation on peer-to-peer lending platforms (lending-based crowdfunding platforms) that provide or intermediate credit to consumers to obtain a credit origination license from the Estonian Financial Supervision and Resolution Authority.

If you are interested in learning more about how crowdfunding is regulated in Estonia and the Baltics, take a look at this research article by Tomas Sadzius & Linas Sazius: Crowdfunding Regulation in the Baltic Region.

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