Loans are limited to €100 on projects under €100,000
There is a limit of €100 per loan for projects smaller than €100,000. This limit exists to avoid small projects to be funded too quickly. For loans above €100,000 there is a limit of €2,000 per loan.
Otherwise, in small projects a small number of lenders can take a very significant place. For example, it is not uncommon for 20% of individual lenders to account for more than 65% of the total amount lent by individuals.
More diversification for individual lenders
This limit allows more lenders to invest and thus diversify their loan portfolio more widely. It has no impact on the distribution between institutional lenders and individual lenders. Institutional Investors will remain at 51%. The idea is not to increase this share, but to increase the number of private lenders.
As a reminder, institutional investors automatically lend 51% at the beginning of the project and then complete if there are not enough individual lenders.