Grupeer P2P Lending Platform Review
Grupeer is a peer to peer lending platform from Latvia that offers both consumer loans and real estate development loans with an average return rate for investors of 14%.
- 14% return rate on loans
- all loans come with a buyback guarantee
- all loan originators are required to hold some skin in the game
- company founded in 2016, headquarters in Riga, Latvia
- loan types: mostly business and real estate loans
- all loans are based on EUR currency
- all loans are secured
My Portfolio on Grupeer (as of January 2019)
Started investing: December 10th, 2018
Deposits: 400 EUR
Current Value: 403.01 EUR
My current portfolio consists of a series of development loans from Belarus and a few business loans from the Czech Republic.
I like the 14% interest rate on all my loans and the fact that all of them come with a buyback guarantee that covers the principal invested and the interest due.
Opening an account and adding money to it
Grupeer can only accept money transfers coming from countries in the European Economic Area and Switzerland. You also need to be 18+ years old in order to be able to invest on the platform.
You’ll also need an email address and a phone number to register.
Then you’ll need to deposit money to your account in order to invest in any loans. All the loans are in EUR, so if you don’t have a EUR account and you want to save some money on currency conversion fees, you can always use Transferwise.
If you don’t have a Transferwise account, you can open one here.
Investing in loans
You can filter the available loans based on loan originator, loan-to-value or available amount for investment. The available loans rates range between 12% and 15%.
All the loans have a buyback guaranteed policy. This means the credit company will buy back from you the loan plus the interest owed if the loan has defaulted or if the payments are delayed by more than 60 days.
The problem is that there are few loans available and they get sold out quick. That’s where an auto-invest strategy comes in handy. It will automatically pick up any new loans and invest in them according to your settings.
Investing in development projects
Grupeer offers real-estate development project loans as a special type of loans to invest in. These loans are issued by Grupeer to different companies and then these are financed by the investors on the platform.
All the loans have a buyback guaranteed policy if the loan payments are more than 60 days late. The interest rates vary from 13% to 15%.
With the auto-invest feature you set up loan types you’re interested in (mortgage, car loan, business loan), interest rates interval, term interval, maximum investment per loan and a maximum amount to invest in this strategy.
The auto-invest page looks really simple, but it’s actually a nightmare to use.
There’s no indicator telling you what fields are required, so if you fill out only the fields you’re interested in, you’ll only get a long list of error messages when you hit the Save button. And the selection is not intuitive at all. The Country drop-down lets you filter loans only from the countries you want. But if you don’t select a country from that dropdown, it doesn’t use all countries by default, but instead, it considers that you didn’t select any country. And it will give you an error message, of course, only when you try to save your settings. The same goes for all the other dropdowns on the page.
Grupeer stability fund
With the stability fund, you are able to buy shares in a real estate property and then earn stable income between 4 and 8% from rent. This is great for long-term, lower risk investments. You get lower returns than with the peer to peer loans but on the long run, this is an excellent passive income option.
The stability fund is not active yet, but I’m really interested in how it will perform once Grupeer makes it available.
Conclusions on Grupeer
Good selection of loans
Grupeer offers good interest rates on the available loans. The real-estate development projects are also interesting. Also, the buyback guaranteed policy is a feature that brings some piece of mind. The buyback policy also includes the missed interest payments for the loan period.
The auto-invest feature saves you from a lot of time wasted searching for loans. The auto-invest interface is a little hard to use, but once you set it up you don’t need to come back to it.
The website interface is missing some features and in some places offers a bad user experience.
There is a small number of loans available so manual investing is a bit hard to use. Luckily, you can subscribe to Grupeer email updates and they’ll notify you when there are new investments on the platform.
No secondary market available, although the menu option exists and the website is saying this feature will be available soon.