Grupeer P2P Lending Platform Review
Grupeer is a peer to peer lending platform from Latvia that offers both business loans and real estate development loans with an average return rate for investors of 14%.
- Loan types: Business Loans, Development Loans
- Loan terms: up to 4 years
- Interest rates: 11-14%
- Fees: no fees
- Minimum investment: 10 EUR
- Currency: EUR
- Secondary market: no
- Auto-invest: yes
- Buyback guarantee: yes
- Last update: March 2019
- Started Investing: December 10th, 2018
- Current value: 989.90 EUR
- Profit: 9.90 EUR
- Average interest rate: almost 14%
My current portfolio consists of a series of development loans from Belarus and a few business loans from Russia and the Czech Republic.
I like the almost 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.
The size of my Grupeer portfolio is pretty decent, so for the next few months I’ll just reinvest the interest payments back into the platform, but I won’t add any new funds here.
Opening an account and adding money to it
Grupeer can only accept money transfers coming from countries in the European Economic Area and Switzerland.
Since all the loans are in EUR currency, I’m using my Revolut account in order to add funds to Grupeer.
Investing on the platform
You can filter the available loans based on loan originator, loan-to-value or available amount for investment. The available loans rates range between 11% and 14%.
All the loans have a buyback guaranteed policy. This means the lender 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.
You might want to turn off email notifications after you invest in a few projects. For each loan you invested in, Grupeer sends you a different email saying “you just received a 0.13 EUR interest payment” or something like that.
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 14%.
I wouldn’t recommend using the auto-invest tool. Grupeer splits the loans for the same project into small chunks (10.000 to 20.000 EUR) and the auto-invest tool will end up investing all your funds into the same project (but different loan parts).
Grupeer stability fund
This is a feature Grupeer started to promote more than a year ago and it’s still not available.
With the stability fund, you’d able to buy shares in a real estate property and then earn a stable income between 4 and 8% from rent. This would be great for long-term, lower risk investments. You’d get lower returns than with the peer to peer loans but on the long run, this would be an excellent passive income option.
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.
Good interest rates
14% interest rates are a pretty good deal. Combined with the buyback guarantee, there’s not much more I could ask for.
The auto-invest feature needs lots of work in order to be usable. I can trust it to invest my measly interest payments so far, but I would definitely disable it before I add new funds to the platform. It just doesn’t diversify your investments because it invests into different loan parts of the same project.