The demand for P2P lending continuously grew over the past couple of quarters, both from investors and borrowers. This is evident from increasing investments and borrowing on one of the largest P2P lending platforms, Mintos, which is expected to hit €6 billion in funded loans within the next few months if it maintains the current pace. As of January 4, 2021, the platform has 362,436 registered investors with an average investment of €2,462 per investor.

The low-interest-rate environment, along with the unprecedented stock market volatility, has forced defensive investors to stay on the sidelines instead of risking hard-earned money. However, P2P platforms have opened the opportunity to invest in the asset class previously only available to big investors and institutions. P2P platforms like Mintos says it offers a lucrative returns to investors as the average interest rate stands around 12%. Cumulatively, the investors have earned €129,636,633 from interest since the inception of Mintos back in 2015. As per statistics shared by Mintos, the demand for personal loans is the highest, accounting for more than 53.2% of the overall loans followed by short-term loans and business loans at 22.5%. The amount of outstanding personal loans on Mintos platform now stands at €261,785,732, while the short-term loans outstanding amount is €114,194,676.