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Loanpad Review


In this Loanpad review, we’ll be taking a closer look at this peer to peer lending platform, to see what they have to offer investors like you.

We’ll explore how the platform works and what type of investment options Loanpad offer – including their IFISA. Then we’ll discuss how much you can expect to earn with Loanpad and whether your money will be safe.

Finally, so that you don’t just have to take our word for it, we’ll check out some reviews from other genuine customers who have used Loanpad, to see what experiences they’ve had.

Who Are Loanpad?

Loanpad officially launched for investment in January of 2019. The company offers investors the chance to earn more interest than they might otherwise get, if they were to simply leave their cash in the bank, for example, albeit with a degree of risk.

While Loanpad are technically a peer to peer lender, you won’t have to be as hands on when managing your investment as you might with some other P2P lending platforms. This is because Loanpad takes care of all of the hassle on your behalf. This includes activities such as finding loans, managing these loans and collecting the interest on them.

All you have to do is start investing with Loanpad to earn interest on your money from day one, it’s that simple.

How Does Loanpad Work?

Loanpad would likely describe themselves as a hassle-free peer to peer lending platform.

When you invest with Loanpad, they then lend your money out to property professionals in the form of short-term property loans. The interest made on these loans will then be paid out to you, the investor, with Loanpad taking a small cut of the interest in return for providing the platform.

You can invest anywhere from £10 to £250,000 with Loanpad. The maximum amount you can invest will depend on whether you opt for their Classic Account or Premium Account.

When you first transfer money into your loanpad account, it will be held in a ring-fenced Barclays Bank UK cash account. You will then move your money to either their classic or premium lending account to start earning. Once your money is in one of these accounts it will begin to earn interest. This interest will be paid into your cash account on a daily basis. You can then choose to either reinvest the interest or withdraw it. Loanpad will aim to process your withdrawal within one business day.

What Types of Account do Loanpad offer?

Loanpad offers a General Investment Account and they also allow you to invest via an Innovative Finance ISA (IFISA).

To open an account with Loanpad, you will need to be over 18 years of age and have a UK address / bank account.

The Loanpad Innovative Finance ISA allows you to invest via Loanpad without paying tax on your interest. You can invest up to £20,000 per year via an IFISA and you can also transfer an existing ISA to Loanpad.

Loanpad also offers 2 different types of lending account. These are their Classic Account and Premium Account.

With the Loanpad Classic Account, you can invest between £10 and £20,000. The main benefit of the Classic Account is you will have easy access to withdraw your money at any time. The tradeoff is that you will receive slightly less interest on this account than you would with their Premium Account.

With the Loanpad Premium Account, you can still invest from a minimum of £10. This account comes with a much higher maximum investment amount of £250,000, though. You will earn a higher rate of interest with the premium account but you will need to give 60 days’ notice to be able to access your money. From time to time, you may be offered the possibility of early access to your premium account investment. This will be for a 0.5% fee.

How Much Can You Earn With Loanpad?

Loanpad currently offers investors a 4.00% interest rate if you lend via their Classic Account or 5.00% if you opt for their Premium Account.

Don’t forget that Loanpad pays interest out daily. In the coming weeks a new feature will be added meaning you will be able to auto-reinvest the interest if you’d prefer. This helps to gain the maximum benefit from compound interest, as you start earning money on your paid out interest more quickly than you might with some other types of investments.  

Is Your Money Safe With Loanpad?

As with any investment, there is some level of risk involved with using the Loanpad service. To lower this risk, however, Loanpad has put certain measures in place.

1) Loanpad takes security over any property they lend on. This is great because it means there is an asset to recover if a borrower fails to repay on a loan.

2) Loanpad works along with other ‘lending partners’ who agree to take on the riskier part of any loan which is made. This means that Loanpad investors always take on the least risky part of any loan. Another positive of this is that it encourages the ‘lending partners’ who are taking on the riskier part of the loan to make sure that they are very confident that the borrower will repay. Loanpad themselves also extensively check a borrower’s ability to repay.

3) Loanpad diversifies by spreading investors’ money across the entire range of loans. This lowers the risk of individual borrowers failing to repay. 

4) Loanpad investors will always be first in line for repayments on any loan, ahead of ‘lending partners’.

5) Loanpad has further protection in place in the shape of their ICF (Interest Cover Fund) This fund is designed to cover the interest payments on a loan in the case of a borrower missing a repayment.

It’s worth noting here that – as with other P2P lending platforms – there is no FSCS protection with a Loanpad account.  

If you’re still unsure as to how Loanpad and their lending partners work together to protect investors, then perhaps the image below will help explain it further.

Shared loans lower risk

Loanpad Reviews

I hope this review has helped you to make a decision about Loanpad and whether it is right for you. In our review posts we feel it’s also useful to see what others have had to say. It’s good to see that Loanpad has a 4 out 5 star rating on the review site TrustPilot. 87% of reviewers rated them as excellent on the site.

Alternatives to Loanpad

What if after reading this review you’ve decided that Loanpad after not for you? In this case it’s good to know that there are alternatives available.

If you’re wanting to stick with an IFISA then you might be interested in reading our Kuflink review. Kuflink also lend to property professionals but the returns on offer may be more appealing.

Or you might want to consider something completely different and look at a robo-advisor like Moneyfarm instead. Moneyfarm allow you to invest in the stock market in a hands off way, all for a low fee.


As we have seen Loanpad offers a simple option for those looking to earn more interest on their cash. While investing with Loanpad does carry a degree of risk, the company have put measures in place to lower the risk. It’s quick and easy to start investing with Loanpad. You can choose to invest via their Classic or Premium Account and they also offer an IFISA.

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