Simona Vaitkune


5 Reasons To Invest In Consumer Loans

Originally Posted on 2017–11–28 at Fast Invest Blog

Would you like to expand your portfolio with a low-risk investment that offers great returns?

You should really consider investing in consumer loans, then. P2P lending is on the rise and is going to only get bigger with the advent of cryptocurrency lending.

In this article we are going to discuss five main reasons why you should invest in consumer loans and explain how you can get started today. Ready? Let’s go!

What Is Investing In Consumer Loans?

Consumer loan is money lent to an individual for personal, family, or household purposes (say, renovating a house).

These loans are some of the banks’ most lucrative assets, and for the long time they were an investment option only available to the banks. However, things are changing, and with the rise of P2P lending, ordinary people can invest in consumer loans as well. How does it work?

A P2P platform provides you with a list of people who need loans. You then pick a loan and finance it. The borrower then starts paying back the loan, as well as the interest. Then, you get payments every month until the loan is repaid.

Five Reasons Why You Should Invest In Consumer Loans

But are consumer loans really a good investment choice? We think so. And here are five reasons why:

#1 Investing in consumer loans beats your savings account

We have all heard that keeping your money under a mattress is foolish. You should keep your savings in the bank and let the interest compound. But does this nugget of financial wisdom still apply?

The reality is that the interest you get when you put your money in savings account is negligible. For example, even the best paying savings accounts, such as fixed-rate ISA’s, will only get you 1.35% interest. That’s keeping in mind that in such a case you are not able to access your money until the term runs out. Does that sound appealing?

But you know what is worst? The fact that the inflation is higher than the interest of your savings account — it’s usually around 2%-3%. That means that you are losing money by keeping it in the bank! Maybe keeping it under the mattress wasn’t such a bad idea after all?

But investing your savings in consumer loans is an even better idea. For example, FastInvest offers up to 15% interest, which blows your savings account out of the water. So don’t keep your money under the mattress, but don’t keep it in the bank either. Invest it in consumer loans and watch it grow!

#2 You don’t need much knowledge or capital to begin investing

Investing can often be intimidating because of the amount of knowledge and capital that you need to begin with.

For example, if you want to start investing in real estate, you need to understand the laws, the financing, and the area. Then, you need to spend hours upon hours at the bank, in order to get a mortgage. And, of course, you need to cough up tens of thousands of dollars for the downpayment. All that just to get your feet in the door!

Investing in consumer loans is much simpler and much more accessible. For example, with FastInvest, an application process lasts less than an hour and you can start with as little as $1. Moreover, if you don’t feel knowledgeable enough, you can always turn to our AutoInvest tool that will do all the work for you. Who could have thought investing could be so easy?

#3 When you invest with trusted companies, the risk is low

People often associate investing with high risk. And it’s not for no reason. The stock market is notorious for its volatility. Real estate goes through boom and bust cycles. Startup investing is basically gambling. Those with high-risk tolerance tend to thrive in investing. But do you have to be an adrenaline junkie to be a successful investor?

Investing in consumer loans isn’t risky as long as you diversify your investments. What does that mean? It means that instead of putting all your money into one loan, you spread it out over several loans. That way, a single default won’t affect you much, because you’d only lose a few dollars as opposed to your entire investment.

Moreover, with FastInvest, you wouldn’t even lose those few dollars. We offer our investors a Default Guarantee. If a borrower is late with their repayment for 3 days, our partners (credit institutions) are obligated to cover the late payment. That means that even in a case of a default you’d get your money back. There’s really very little risk when you are investing with us!

#4 Investing in consumer loans with the right company offers great flexibility

When you are really rich, you can put large amounts of capital into illiquid investments, and then not think about it again. But what ordinary person can afford to do the same? Almost no one.

The reality is that an average investor needs liquidity, but that’s not so easy to find. Whether you put your money in an investment fund, real estate, or startups, it becomes inaccessible to you for a certain period of time, often for years.

That is actually true for most peer-to-peer investment platforms as well. A lot of them have so-called secondary markets where you can try and sell your investment if you want to get your money back. But that is uncertain and time consuming. Not very appealing when you are in need of money.

But here at FastInvest we understand that things happen. You can get fired, you can get sick, your car can break down. Everyone encounters a financial emergency at some point in their lives. That’s why we offer our BuyBack guarantee.

With our BuyBack guarantee, we are obligated to buy back your investment within 1 day, which effectively allows you to withdraw your money at any point. Again, with us, there’s very little risk!

#5 Investing in consumer loans is a great way to create a source of passive income

You know how people in our grandparent’s generation would often start working at a company right out of college and then work there until they retire? Well, those days are long gone. The job stability simply isn’t there anymore. The reality is that most of us can get fired at any time with little warning.

So is it really wise to rely on your salary to be your one and only income stream? Think about it. It might all seem good now — you might have a job you love, friendly colleagues, and a great boss. But what does the future hold? You never know. That’s why it’s important to have a plan B in case you get fired or get sick and can’t work anymore.

And even if you are fortunate to not get fired or get sick, you are going to grow old, and you will eventually have to retire. Are you ready for it? Most people aren’t without even realizing it. It’s likely that when you’ll retire you’ll face an income drop of up to 50%.

Investing in consumer loans provides a great way to gradually build up a reliable income stream that can complement your salary or your pension. Start investing now. It’s better to be safe than sorry!

Help Yourself While Helping Others!

Now you already know why investing in consumer loans is beneficial to you. But are you aware that by doing so you can also help others?

Getting a consumer loan from the bank can sometimes be very difficult. Some people have a bad credit, some don’t have a credit history at all. There are plenty of hard working, honest, reliable people that can’t get the loans they need because of the mistakes they have made in the past. Imagine being stuck in such a situation when you really need money!

And then there are those who don’t even have a bank account to begin with. There are over 2 billion of unbanked people out there. They make up around 39% of the world’s population. These people, most of whom live in developing countries (though make no mistake, there are plenty of them in Europe and North America), don’t have bank accounts. That means that things that we take for granted, like credit cards, loans, and mortgages, are simply unavailable to them. Can you imagine how much harder your life would be if basic banking services were unavailable to you?

Luckily, P2P lending with cryptocurrencies is disrupting the financial system and might bring the world’s unbanked to the global economy. Why not join the blockchain revolution with FastInvest?

Start With Fast Invest!

Okay, so now you are interested in investing in consumer loans but aren’t sure where to start. Well, why don’t you start with us?

  • We offer returns of up to 15%.
  • We offer a Default Guarantee.
  • We offer a BuyBack guarantee.

Plus, you can start investing with as little as $1, which means that you can learn the ropes without any risk and then decide if investing in consumer loans is for you. Sounds good, doesn’t it?


Investing in consumer loans is a great way to add some low risk, reliable investments to your portfolio and create a stream of passive income.

Want to start investing in 2018? Why wait? You are $1 and less than an hour away from becoming an investor. Start today.

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