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.
Below, you will find a complete list of all crowdlending platforms operating in Norway, followed by a presentation of the latest data on the Norwegian market for P2P lending.
Table of Contents
Best Crowdlending Platforms in Norway
Here, you will find a list of the top peer-to-peer lending platforms in Norway. 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 bottom of this page.
Kameo Facilitates crowdfunding in the area of real estate lending in Norway at a minimum investment of 500 NOK. The platform offers different kinds of real estate loans such as building credit, housing loans, bridge loans, renovation, business loans, rental property among others. Kameo was founded in 2014 by Sebastian Harung as a Swedish company. The headquarter and company is located in Stockholm, Sweden but the platform also offers financing from its offices in Norway and Denmark. Loans are in Norwegian Kroner(NOK), Danish Kroner(DKK) and Swedish Kronor(SEK).
Any Norwegian person or company registered in Norway can invest on Kameo.
Any Norwegian real estate company or company with real estate to put as collateral can apply on Kameo if the following conditions apply:
- Established as a Limited company
- Positive equity
- Be able to present updated financial information no older than three months
- Have submitted at least one annual report
- Can obtain approved credit rating from UC, Bisnode or similar
FundingPartner facilitates crowdfunding in the area of SME business lending to Norwegian SME companies at a minimum investment of 1.000 NOK. The platform offers financing for business development, acquisition, financing of property, working capital, new investments, and debt restructuring among others. FundingPartner was founded in 2016 by Geir Atle Bore and Marius Borthen as a Norwegian company. The office and company is located in Oslo, Norway and exclusively offers financing to Norwegian companies. All loans are in Norwegian Kroner(NOK).
Any natural or legal person who has a Norwegian Bank ID issued by a Norwegian bank can invest on FundingPartner.
Any Norwegian company with a financing volume from 500.000 NOK to 30.000.000 NOK and a duration from 6 to 60 months can apply for a loan if they fulfill the following requirements:
- Be legally based in Norway
- Have a Norwegian bank account
- Be creditworthy without any payment remarks
Additional requirements apply depending on if it is a secured or unsecured loan.
Kredd facilitates crowdfunding in the area of consumer lending to Norwegian citizens at a minimum investment of 1000 NOK. The platform offers unsecured consumer loans to citizens of Norway with a good finances for home improvements, vacation, car, refinancing among others. Kredd was founded in 2016 by Knut Magnus Jacobsen and Andreas Talseth as a Norwegian company. The office and company is located in Oslo, Norway and exclusively offers financing to Norwegian citizens. All loans are in Norwegian Kroner(NOK).
Any company registered in Norway or person of at least 18 years old who has a Norwegian Bank ID, is a Norwegian citizen and pays taxes in Norway can invest on Kredd.
Any Norwegian citizen that is between 20-65 years old with a net annual income of at least 250.000 NOK and do not have any payment notes can apply for a loan on Kredd.
Monner facilitates crowdfunding in the area of SME business lending to Norwegian SME companies at a minimum investment of 1.000 NOK and a maximum of 20% of the total loan amount. The platform offers financing for business growth projects, acquisitions, and working capital among others. Monner was founded in 2016 by David Baum and Jarle Holm as a Norwegian company. The office and company is located in Oslo, Norway and exclusively offers financing to Norwegian companies. All loans are in Norwegian Kroner(NOK).
Any natural or legal person who has a Norwegian Bank ID issued by a Norwegian bank can invest on Monner.
Any Norwegian company with a financing volume between 250.000 NOK and 20.000.000 NOK and a duration from 6 to 36 months can apply for a loan if they fulfill the following requirements:
- Be registered as a corporation in the Brønnøysund Register Center
- Be creditworthy without any payment remarks
- Have a minimum of 250.000 NOK in annual sales
- Have positive equity
- Present the accounting of the last 2 years.
Perx facilitates crowdfunding in the area of consumer lending to Norwegian residents(so called Folkefinansiering) at a minimum investment of 1.000 NOK. The platform offers financing unsecured private loans for people wanting to refinance existing expensive loans or as an extraordinary consumer loan. Perx Folkefinansiering was founded in 2016 by Andreas Gyrre & Yngve Lillehagen as a Norwegian company. The office and company is located in Oslo, Norway and exclusively offers financing to Norwegian residents. All loans are based on annuity payments and in Norwegian Kroner(NOK).
Any Norwegian person of at least 18 years old and company registered in Norwegian can invest on Perx.
Any Norwegian person of at least 23 years old with a yearly income of minimum 350.000 NOK can apply for a loan from 25.000 to 250.000 on Perx. For loans over 150.000 the person must be owner of a home.
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).