Peer to Peer Lending in New Zealand (P2P Lending)

Peer to Peer Lending in New Zealand (P2P Lending)

Peer to Peer Lending in New Zealand –  also known as crowd-lending. On the name implies is a financial platform peers borrowing money to their peers.

Hence, customers who get the money will make repayments to the lenders with interests.

Peer to Peer Lending in New Zealand (P2P Lending)

P2P systems offers more return on customers’ money rather than banks and/or other financial situations, but this may include some risks, too.

There are some popular and experienced Peer to Peer Lending in New Zealand platforms such as Squirrel Money, Harmony and Lending Crowd with different annul percentages in NZ. All these companies are listed P2P Lending platforms because they are all approved by the Financial Markets Authority in New Zealand.

Peer to Peer Lending in New Zealand

Peer to Peer Lending in New Zealand

Working Principle of Peer to Peer Lending

The main purpose of Peer to Peer Lending in New Zealand is to provide loans with low interest rates to Kiwis by other Kiwis who have savings mainly as cash money. At this point, P2P Lending platforms step in by saying that lenders can get return of their investments ranges from 8% to 12% annul, while borrowers can obtain a loan with low interest rates rather than banks.

What Makes P2P Different From Other Financial Companies?

The difference between Peer to Peer Lending in New Zealand and banks and/or financial companies is coming from the fact that if the borrower do not repay, lenders’ investments reduce. Therefore, P2P platforms are creating their own credit application criteria to minimize risk for the lenders. To illustrate, affordability test and credit checks by third-party agencies are two of these criteria.

In general, investor for a Peer to Peer Lending in New Zealand, if he/she is really debt free and want to get higher return rather than banks, investor probably winning more return with higher rates, but certainly this is not guaranteed due to dependency on borrowers repayment.

Some Important Facts About to Peer to Peer Lending

  • Lenders’ investment may not reach to borrower immediately which leads to delay in earning from interest rate for some time.
  • Check whether P2P Lending has a secured system or not.
  • Withdrawing money early may not be possible so that check loan terms.
  • Be careful with the taxes from your returns.
  • Huge loan capacity, reliability and being in a better financial position for a P2P Lending platform is the key point to invest money.
  • Learn features of P2P Lending platforms as an investor and as a borrower.
Peer to Peer Lending in New Zealand

Peer to Peer Lending in New Zealand

Major P2P Lending Platforms in New Zealand

  • Harmony

Harmony P2P Lending platform is working actively almost 20000 lenders today with current interest rates approximately 13%. This makes the platform pioneer in NZ. It has a loan protection feature with an additional fee. Also, fee is currently $500. Moreover, $700M has been lent so far. Maximum and minimum lent amount is $3000 and $70000, respectively.

  • Squirrel Money

Squirrel Money is known as the second largest P2P with fixed returns in NZ. Loan protection method is provided by Loan Shield which is used to ensure lender investment properly.

Current rates: 7.89% (2-year rate), 8.89% (5-year rate) after fees but before income tax.
Fee: Up to 3% p.a. of the loan balance
Early withdraw: Yes, with a fee of 1% of the loan balance fee
Minimum and maximum investment in platform: $500 to $2M
Money lent so far: approximately $20M
Active Lender numbers: approximately 1000

  • Lending Crowd P2P Lending

Actively lender numbers are about 1000 with an earning rates between 5% to 14% per annul after fees. Unfortunately, it has no early withdrawing opportunity. Also, loan protection is not offered by the platform.

Minimum investment in platform: $50
Money lent so far: ~$10M

Peer to Peer Lending in New Zealand

Peer to Peer Lending in New Zealand

P2P Lending in New Zealand

Peer-to-peer lending is a great investment option for those who want to diversify their portfolio, without taking on too much risk. Peer-to-peer lending is still in its infancy in New Zealand, but the industry is growing rapidly and has already seen some success stories. This article will explain what peer-to-peer lending is and how it works, as well as outlining some of the key benefits of investing in this way.

The basics of Peer to Peer Lending in New Zealand

Peer to peer lending is a way for individuals to borrow and lend money without the involvement of traditional banking. Instead, you connect directly with another person who is lending their capital for your use.

This type of arrangement differs from traditional banking in that it does not involve a bank or other financial institution acting as a third party intermediary between the borrower and lender. Instead, funds are transferred directly between two parties via a Peer to Peer Lending in New Zealand network (also known as an online marketplace).

Peer-to-peer lending also differs from crowdfunding platforms such as Kickstarter or Indiegogo because while both involve raising funds from multiple people, they do not require backers to directly invest their own funds in exchange for interest payments or equity gains over time.

What is the difference between Peer to Peer Lending in New Zealand and a bank loan?

Bank loans in New Zealand are a lot more expensive than peer-to-peer lending, especially when it comes to interest rates. The banks also have stricter criteria when it comes to the types of people they will lend money to and how much they will lend them.

Peer-to-peer lenders, on the other hand, give you complete control over your own loan payments and risk level. You can choose your own interest rate on your own terms as well as what term you want (short term loans or long term), who will be responsible for paying if there’s a default and if there is one what happens next (repayment or collections).

The benefit of this flexibility is that you can use any extra cash flow from your business into another asset like property investment or even personal items such as furniture which means less stress on cashflow management because there are no overdraft fees from banks when using their overdraft facilities which makes sense since all banks offer some sort of overdraft facility nowadays anyway so why not use it?

What are the benefits of peer-to-peer lending?

Peer to Peer Lending in New Zealand is a great way to earn high returns on your investments, while also helping other people.

When you lend money through a P2P platform you’re helping fund small businesses and individuals who may not otherwise have access to those funds. As an investor, you will get paid for the risk that these borrowers are taking on by taking out their loans. It’s kind of like an insurance policy: if they don’t pay back the loan then it’s up to the platform itself (e.g., Lending Works) to cover any defaults, but if everything goes according to plan then both parties benefit from increased capital and interest payments respectively!

This means that peer-to-peer lending offers investors with a high tolerance for risk some pretty good returns – typically around 7% per annum

How to get started with Peer to Peer Lending in New Zealand

Peer-to-peer lending is a great way to make money from your money. When you lend your hard-earned capital to another peer on the platform, you can expect to receive interest payments that are higher than what banks pay. On top of that, you get your principal back at the end of the loan period.

Here’s how it works: Find a lender who has posted an offer for a loan on their profile page (we’ll cover this in more detail below). You will see their current rate, how much they want to borrow and what they plan to use the funds for. If you think that this person’s request seems reasonable and likely to be repaid with interest over time, click ‘Lend Now’ or ‘Add To Cart’ and proceed through checkout like usual!

Peer to Peer Lending in New Zealand

Peer to Peer Lending in New Zealand

The role of peer-to-peer lending in an investment portfolio

There are many benefits to peer-to-peer lending. Not only are you able to earn better yields than a traditional savings account, but you also have the opportunity to diversify your investment portfolio with a new asset class that can help reduce risk and provide higher returns.

The best way to get started is by opening an account with one of the top peer-to-peer lending platforms in or loans New Zealand. To find out more about which providers offer Kiwis access, check out our guide on how to open an account with a P2P platform here.

Peer to Peer Lending in New Zealand can offer you high returns

with low credit risk, which makes it one of the best investments you can make.

Peer to peer lending is a way for you to get a loan from another person. Instead of going through an institution like a bank, you can invest in loans that you think will be repaid and earn a higher return than with other investments. Because these are personal loans, there’s less risk of default than with other investments. While this may seem like it’s too good to be true, peer-to-peer lending is one of the best investments you can make if you want all the benefits of investing without taking on unnecessary risks.


Peer-to-peer lending is the future of finance, and it’s already here. As more people realize the benefits of investing their money in small businesses and entrepreneurs, more will start using this platform to do so. If you are looking for a way to invest your money while helping others out as well, then Peer to Peer Lending in New Zealand is definitely something worth considering!