Loanch Review 2025: Features, Safety & Alternatives

What is Loanch?

Loanch is a Hungarian peer-to-peer lending platform launched in 2023. It connects European investors with loan originators in Asia and advertises returns of up to 16.59% on short-term consumer loans.

Loanch works by connecting European investors with credit companies that provide short-term consumer loans in Southeast Asian markets. When you invest through Loanch, your funds are lent to borrowers overseas, and you earn interest on the repayments.

The platform has attracted around 3,400 investors and Loanch has facilitated approximately €10,000,000 in funding for short-term loans.

Loanch is not regulated, as it is not required in the jurisdiction in which it operates.

What is the return on Loanch?

Loanch’s average annual investment return is 13.49%. This places the platform in a relatively competitive spot among P2P lending platforms in Europe, though it is not among the absolute highest-yielding options in the market.

The interest rates on Loanch ranges from 13.00% to 16.59%. While these rates may appeal to those seeking a higher yield than what is typical on some competing platforms, there can be periods of cash drag that may lower the effective return if funds remain idle.

Does Loanch withhold taxes?

Loanch does not withhold taxes from investors’ earnings. This approach contrasts with certain regulated competitors like Mintos, NEO Finance, VIAINVEST, and TWINO that withhold a portion of your returns for tax purposes. Because Loanch does not withhold taxes, you retain full control over how you manage and report your earnings.

Tax report

Loanch provides a dedicated tax report that you can download directly from your investor account. This statement contains all the necessary information you need to file your taxes with local authorities, helping ensure a straightforward and efficient reporting process.

Is it safe to invest on Loanch?

Loanch is not considered one of the safest P2P lending platforms in Europe. Despite having operated reliably since 2023 with no reported capital loss for investors, the platform lacks transparency about loan performance. All loans on Loanch include a buyback guarantee, which aims to protect investors from borrower default.

Loanch is not regulated, which may be a concern for some investors. While Loanch has not been labeled a scam, investors should carefully evaluate its legitimacy and the platform’s limited transparency before deciding if it aligns with their personal risk tolerance.

Risks & guarantees

The primary guarantee offered by Loanch is buyback protection, which is made to protect investors from loan default risk on the platform. This buyback protection sets itself apart from most other platforms as it only requires that loans are 30 days overdue compared to the “industry standard” of 60 days.

Loanch also keeps segregated accounts for investors’ funds which means that if the company goes bust, the investor’s funds are still protected. This is more or less the standard for P2P lending platforms.

Company & team

Loanch is a fairly new company which means it doesn’t have a long track record yet. The team behind Loanch consists of the CEO Nik Sinickis and Antons Lukjanenko. Both have diverse backgrounds and expertise. While Nik brings a blend of project management, engineering, and finance skills to the table, Antons complements this with his experience in technology and development. This combination of skills suggests that the team is well-equipped to handle the technical and financial aspects of running a platform like Loanch.

Loanch also has a partnership with Finriser, a trusted SaaS platform in the industry, adds credibility to Loanch’s operations. By leveraging the technology and expertise of Finriser, Loanch can benefit from proven solutions and best practices, giving users more confidence in the platform’s reliability and security.

Loan originators

Loanch has 3 different loan originators in Indonesia, Malaysia, and Sri Lanka. The annual interest rate of the loan originators is fairly high, which means that investors should expect a fairly high risk as well.

That being said, so far the loan originators are all obligated to buy back loans that are 30 days overdue.

It’s great to see loan originators from multiple countries as it makes it possible to mitigate some geographical risk for investors using Loanch.

Two-factor authentication

Loanch offers two-factor authentication (2FA) to strengthen account security. This feature generates unique, time-based passcodes to protect investor funds from unauthorized access. Since hackers have targeted P2P lending platforms in the past, enabling 2FA is strongly recommended.

What are the key features of Loanch?

Here is an overview of the key features of Loanch:

1. Buyback guarantee

On Loanch, all loans are covered by a 30-day buyback guarantee. This means that if a borrower is more than 30 days late with repayments, the loan originator automatically repurchases the loan from the investor along with accrued interest.

The Loanch buyback guarantee is better than that of most competitors, such as Esketit, Hive5, Lonvest, which have longer buyback periods of 60 days compared to 30 days on Loanch. The advantage of a shorter buyback period is that investors can recover their funds more quickly in case of borrower default, enhancing liquidity and reducing the time their capital is tied up.

Investors should keep in mind that the reliability of the Loanch buyback obligation depends on the financial stability of the loan originators. If the loan originators are unable to buy back the loans, the buyback guarantee becomes worthless.

2. Auto-invest

Loanch provides an auto-invest feature to automatically allocate funds into suitable loan investments based on each investor’s predefined criteria, saving time and simplifying the investment process.

The auto-invest tool enables you to configure key parameters, including portfolio size, maximum investment per loan, interest rate, loan term, countries, and loan originators. You can also automatically reinvest all returns.

Setting up a Loanch auto-invest strategy only takes 1 minute, and your funds should be invested within a few hours. If your auto-invest is not working, it is usually due to a lack of loans that meet your criteria. This can happen when your filters are too narrow or when no suitable loans are available.

How to get started with Loanch?

To use Loanch, follow these steps:

1. Create an account: Visit the Loanch website and sign up for a free account. You will need to provide some personal information and verify your identity using Veriff.
2. Deposit funds: Once your account is set up, deposit funds into your Loanch account. You can do this via bank transfer or other accepted methods.
3. Browse loans: Explore the various loan options available on the Loanch platform. You can filter loans based on criteria such as interest rate, loan term, and risk level.
4. Invest in loans: Choose the loans you want to invest in and allocate funds accordingly. Loanch offers a diverse range of loan originators and types to choose from.
5. Monitor your investments: Keep track of your investments through your Loanch account. You can see your returns, pending payments, and overall performance.
6. Reinvest or withdraw funds: Once you start earning returns on your investments, you can choose to reinvest them in new loans or withdraw them to your bank account.

What are the fees on Loanch?

There are no fees for investors when using Loanch. All fees are placed on lending companies. This makes it easier to calculate your expected returns compared to platforms that have fees as you can just look at the average of the platform.

How to withdraw money from Loanch?

You can withdraw your uninvested funds from Loanch at any time using the withdrawal section of your investor account. It usually takes 1-2 business days for your funds to arrive, unless your bank supports SEPA Instant, which allows for instant withdrawals. The minimum withdrawal amount is €10.

Loanch does not charge any fees for withdrawing funds from your account, but your bank may charge fees for receiving international transfers.

To exit Loanch, you must first turn off all auto-invest strategies and wait for any outstanding loans to mature. If you hold non-performing loans, the platform must first recover the underlying debt before allowing withdrawals, which can negatively affect your liquidity.

No secondary market

Loanch does not have a secondary market, which means that investors must hold loans until they reach maturity. While this may not be a major concern for short-term loans, it represents a notable disadvantage compared to other platforms like Robocash and Esketit, both of which offer secondary markets for enhanced liquidity.

What are the best Loanch alternatives?

Some of the best alternatives to Loanch are Hive5, Swaper and Nectaro.

Is Loanch worth giving a try?

Loanch is one of the best P2P lending platforms in Europe for short-term consumer loans in Southeast Asia. The platform sets itself apart from competitors with its fast 30-day buyback guarantee and diverse geographic coverage through its three loan originators.

While Loanch offers attractive interest rates of up to 16.59%, user-friendly onboarding, and segregated accounts for investor protection, potential investors should be aware of its lack of regulatory oversight, limited track record, and absence of a secondary market for additional liquidity.

Loanch can be a worthwhile option for investors seeking higher returns in a short-term lending environment and who are comfortable with a non-regulated platform. It may not be a suitable choice for risk-averse individuals or those requiring more transparent reporting and established operating history. If you prefer a regulated platform or want a secondary market, other P2P platforms might better meet your needs.