NEO Finance - Risk and return review
NEO Finance - Returns and loss rates
Investment maturity
NEO Finance – Platform statistics 2026
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investors
NEO Finance – Pros & Cons
About NEO Finance
What it is
NEO Finance is a Lithuanian company, founded in 2014, that runs the Paskolų Klubas lending platform. It is the lender itself: it approves each borrower, sets the interest rate, pays out the loan and collects repayments, and investors buy small parts of those loans. It has lent €286.7 million since it began, and has paid investors €58.6 million of interest and returned €206.7 million of principal (statistics page, read 27 October 2026). The company has been listed on Nasdaq Vilnius First North since 2019, so it files audited annual accounts and quarterly reports.
How it works
You invest from €20 per loan (€50 for the A+ grade) in unsecured instalment loans to people in Lithuania, by hand or with auto-invest. NEO Finance grades each borrower from A+ (lowest risk) to C- (highest). Loans run from 1 to 120 months; the average loan is €4,192 and lasts about 67 months, so money can be tied up for years. The platform is shrinking: new lending fell 41% year on year in the second quarter of 2026, and the loan book fell from €92.7 million at the end of 2025 to €87.7 million at the end of June 2026.
Returns
The average interest rate borrowers pay on the loan book is 14.91% (read 27 October 2026); on loans made in 2026 it is 14.61%, ranging from 6.56% for A+ to 22.82% for C-. This is what borrowers pay, before late payments, losses, fees and 15% Lithuanian tax. NEO Finance publishes no figure for what investors actually earned, and its English site advertises an "average return rate of 12%", which also reflects borrower rates. Independent tracking of investor portfolios points to between about 5% and 13% a year (2026), depending on the grades chosen and how long the money has been invested.
Losses and defaults
Only €155,818 (34 loans, 0.05% of all money lent) has been written off. That figure is low because loans are written off only after court and bailiff recovery ends, which can take about five years. The platform's own table shows the fuller picture: 9.95% of all money ever lent (€28.5 million) is more than 90 days late, of which €15.2 million is more than two years late. Measured against the €86.2 million of loans still outstanding, that is about 33% (read 27 October 2026). Including shorter delays, 14.95% of all money lent is late. The filed quarterly ratio of loans more than 90 days late has stayed close to 10% (10.05% at the end of 2025, 9.96% at the end of June 2026).
What secures your money
Nothing secures the loans: they are unsecured consumer loans. When a borrower stops paying, NEO Finance ends the contract and offers to buy the loan back from you within 30 days at a discount: 100% of what is left for A+ loans (made after 12 April 2021), 70% for A, 60% for B, 50% for C and nothing for C-. The old guarantee fund, which paid 100%, no longer applies to investments made from 1 March 2022. If you keep the loan, it goes to court and bailiffs; NEO Finance says about 69% is recovered within three years of termination, before its collection fee of about a fifth.
So the credit you really take is NEO Finance's own. The same company makes the loans, grades them, collects them and buys them back, and it is the only lender on the platform. Its equity of about €4.8 to €5.6 million supports a loan book of about €88 to €93 million (2025 to 2026 reports). In plain words: your result depends on Lithuanian borrowers repaying and on NEO Finance staying strong enough to honour the buyback.
Who runs it and its licence
NEO Finance, AB (Vilnius, company code 303225546) runs the platform and lends. The Bank of Lithuania gave it an electronic money institution licence (LB000247) in January 2017 and, in April 2016, made it the first company on its list of peer-to-peer lending platform operators; it is also a registered consumer credit lender. It has no EU crowdfunding licence, because consumer lending is outside that regulation. No fines, sanctions or payment freezes were found. Its business continuity plan (May 2025) covers outages but does not say who would run the loan book if the company failed.
Fees
From 2 April 2026: €1 a month platform fee once six months have passed since you registered and you hold any investment; €0.29 per withdrawal by SEPA transfer (free for VIP investors); €0.99 a month for an inactive account. Selling on the secondary market costs 1% of the price, charged to both the seller and the buyer. NEO Finance also keeps part of what it recovers from failed loans. Lithuania withholds 15% tax on interest for non-residents unless a tax treaty applies.
Getting your money out
You can sell loans to other investors on the secondary market, for 1% on each side; C- loans cannot be sold. Investors report that the market is small, and with loans averaging 67 months, leaving early can be slow and costly. Uninvested cash can be withdrawn at any time for €0.29. Public review score 4.1 out of 5 (140 reviews, August 2026); the most common complaint is the secondary-market fee.
Our view
Return: Very High — borrowers pay 14.91% a year on average (October 2026), though this is not a measured investor return. Risk: Very Low (higher means more risk) — only 0.05% of money lent has been written off, and the data is detailed and audited; but 9.95% of all money lent is more than 90 days late and write-offs come years later, so losses could end up higher, and everything depends on NEO Finance. Risk-return: Very High — on the platform's own figures, a high rate for very low written-off losses.
Regulation
License / Regulation: NEO Finance, AB holds an electronic money institution licence from the Bank of Lithuania (no. LB000247, since 5 January 2017). It was the first company entered on the Bank of Lithuania's list of peer-to-peer lending platform operators (14 April 2016) and is also on its list of consumer credit lenders. Consumer lending falls outside the EU crowdfunding regulation, so it has no EU crowdfunding licence. No deposit guarantee or investor compensation scheme covers invested money.
Functionality
For Investors
Useful Information
Yes, as an electronic money institution (Bank of Lithuania licence LB000247, since January 2017), a listed peer-to-peer lending platform operator (since April 2016) and a consumer credit lender. It has no EU crowdfunding licence, because consumer lending is outside that regulation. No compensation scheme covers money you lend.
NEO Finance itself, under its electronic money licence: uninvested cash is kept in separate bank accounts and is not the company's property. Once lent, your money is a claim on Lithuanian borrowers.
€20 per loan for grades A, B, C and C-, and €50 for A+ loans.
Borrowers pay 14.91% a year on average (October 2026), but no investor return is published; independent tracking points to about 5% to 13%. Only 0.05% of money lent has been written off, while 9.95% of all money ever lent is more than 90 days late and still in recovery.
Nothing secures the loans; they are unsecured. NEO Finance offers to buy back a failed loan within 30 days at 100% for A+, 70% for A, 60% for B, 50% for C and nothing for C-. Otherwise recovery goes through the courts and returns about 69% within three years, before a collection fee.
NEO Finance's and its borrowers'. It is the only lender on the platform, and it also grades, collects and buys back the loans. Its equity of about €5 million supports a loan book of about €90 million (2025 to 2026), so the buyback depends on one fairly thinly capitalised company.
Yes, on the secondary market, for a 1% fee charged to both seller and buyer; C- loans cannot be sold. The market is small, and loans average 67 months.
€1 a month after six months, €0.29 per withdrawal, €0.99 a month for an inactive account, and 1% on each secondary-market trade (fees from 2 April 2026). Non-residents have 15% Lithuanian tax withheld from interest unless a tax treaty applies.
Your uninvested cash is kept apart from the company's money. The loans would still be owed by the borrowers, but NEO Finance collects them, and its published continuity plan does not say who would take over. The buyback would no longer be available.
