Best Side Hustles for Peer-to-Peer Lending

Whether you’re looking to grow your savings or diversify your investment portfolio, P2P lending platforms offer opportunities to make your money work for you. Here's a guide to the best side hustles for P2P lending in Canada, including a brief description, income potential, and links to get started.

Lending Loop

Lending Loop is Canada’s first regulated P2P lending platform. It connects investors with small businesses needing funding. As an investor, you can review various loan opportunities and choose which businesses to support.

Income Potential:

• Earn an annual return of 6-15% depending on the risk profile of the loans you fund.

How to Get Started:

• Visit Lending Loop to create an account, complete your profile, and start investing with as little as $25 per loan.

GoPeer

GoPeer is a platform that facilitates P2P lending exclusively for Canadians. It allows individuals to invest in consumer loans and earn returns as borrowers repay.

Income Potential:

• Returns range from 7-15% annually based on the risk category of the loans you choose.

How to Get Started:

• Sign up at GoPeer, verify your identity, and explore loan opportunities to invest in.

Mintos

While not Canadian-exclusive, Mintos allows Canadian investors to diversify globally. The platform connects investors with loans in various countries and currencies.

Income Potential:

• Earn up to 12% annual returns depending on the loan types and geographies you choose.

How to Get Started:

• Register at Mintos and start investing in loans worldwide. Note that currency exchange fees and foreign regulations may apply.

Kiva

Kiva allows you to fund microloans for entrepreneurs in developing countries. While it’s more philanthropy-focused, Canadian investors can still earn a modest return and make a social impact.

Income Potential:

• Earn returns of up to 3-5% while supporting meaningful projects.

How to Get Started:

• Sign up at Kiva and choose projects that resonate with you.

Tips for Success in P2P Lending

1. Diversify Your Portfolio: Spread your investments across multiple loans to reduce risk.
2. Understand Risk Levels: Higher returns often come with higher risk. Review borrower profiles carefully.
3. Reinvest Earnings: Compounding your returns by reinvesting earnings can significantly boost your income over time.
4. Stay Informed: Keep an eye on platform updates and market trends to optimize your strategy.

Final Thoughts

Peer-to-peer lending offers Canadians an excellent way to earn passive income while supporting individuals and businesses. Whether you’re drawn to local opportunities or global platforms, there’s a wealth of options to explore. Start small, learn the ropes, and watch your investments grow.

Ready to dive into P2P lending? Choose a platform from the list above and begin your journey today!