I am always looking for ideas to invest money. I saw there are peer to peer lending opportunities in United States. But, there is nothing for Canadians.Just recently, I found an online lending platform, just for Canadians: The Lending Loop.
Lending Loop is an online platform, lending money to small businesses. It is a secure site. The investors can start with $200 initial investment.
Since I am interested in only the investing part of the Lending Loop, I didn't dig much into the criteria for the businesses to apply for the loan.
The $200 to start is really interesting part to me. You can transfer money from your bank by filling out the form and giving your banking information. The site is really easy to navigate. Once your account is verified, you can transfer money.
Next step is finding the lender. You can go the market place and go through the information. If you have questions for the lender, you can ask and the lender will give you answers. Once you figure out whom you want to lend, it is very easy to lend. Then the website will generate a "note" for you. The minimum amount you can give to one company is $25. The lending amount has to be multiples of 25. I started by giving $25 for different companies.
The interest is paid with an annual interest rate and I get interest every month. There is a fee for investors, but that is collected when we get paid.
The website has features to add monthly investments, and auto lending. I haven't started using them yet. My research shows that lending loop has done all the necessary regulation process for the federal and provincial governments. So I don't worry much about company swallowing my hard earned money.
You have now the option to refer and earn. When your referred some one and they lend $1500 , you can get $25. Sounds good, right?
Oh, one more thing, they will issue a T5 so that you can file your taxes. Interest earned is taxable income in Canada. Right now, I can't find an option to hold it in your RRSP or TFSA.
So, what you think of Lending Loop? Already started using it or going to give a little thought?
As a side note, I am not getting paid for this post. I am not a professional to give advise on investing. Make sure you do your own research.