Peer-to-Peer Lending In Estonia
My Zopa alert found this article from a website called European Voice.
It gives this view on Estonian banking.
Banking is the economy’s biggest weakness. It offers stingy, fee-ridden savings products and over-priced loans with nasty hidden costs. Intermediaries gain colossal profits, especially when they are greedy and reckless. When things go wrong, as they inevitably do, the taxpayer picks up the bill. Apart from that, it works fine.
It then goes on to show how things are changing through a company called Isepankur.
The writer has in fact invested some of his savings, by loaning to Estonian borrowers. This is his experience so far.
My net average return (like most Isepankur lenders) is about 17%. I have so far lent €1,570 to about 50 borrowers, in amounts ranging from €5 to €25. I have received €60 back in repaid capital and €24 in interest. I also got €0.06 in ‘penalties’ (my share in a small fine levied on a borrower called ‘Lillekas’ who paid a few days late).
I don’t think it will be many years, before the peer-to-peer lenders are available in many countries.
Who’d be a retail banker?
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The Anonymous Widower 
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