My initial thoughts on Robo.cash
Robo.cash is a peer-to-peer lending platform based in Croatia that offers short-term consumer loans to its investors.
The loans currently available come with a 12% interest rate and all have a buyback guarantee. The buyback guarantee means if a loan is late by 30 days, Robo.cash buys back the loan from the investors and also pays the interest owed for the late period.
The Robo.cash lending platform was opened in 2017 and it’s used to fund the growth of the lending companies belonging to Robocash group.
- Loan types: Short-term consumer loans
- Loan terms: 1 to 12 months
- Interest rates: 12%
- Fees: no fees
- Minimum investment: 10 EUR
- Currency: EUR
- Secondary market: no
- Auto-invest: yes (and no manual invest)
- Buyback guarantee: yes
Why invest in Robo.cash
What I like most about Robocash is that it’s a profitable company. They make available their financial statements and so far, they’re growing more than 100% every year.
While they’re a large company with more than 1500 employees, they make use of automated technologies and credit scoring based on machine learning to streamline their processes. It also sounds like a cool company.
I get to invest in a cool company and also get a 12% return.
If you want to register with Robo.cash, you need to be a resident of the EU or Switzerland in order to do so.
Investing in Robo.cash
The minimum investment is 10 EUR, and there’s also a cap at 10.000 EUR per year. Meaning you can’t add more than 10.000 EUR into your account.
I can only invest through the auto-invest tool in the loans available.
I set up my auto-invest profile, set expected interest rates between 11% and 15% (currently all rates are at 12%), and then whatever funds I add to my account are automatically invested.
There are 6 loan originators from Robocash group available for investment. You can also choose which lenders you want to include in your auto-invest profile, although I see no reason for it. All loans come with a buyback guarantee and all lenders are part of the same parent company.
So, no manual investments, no complicated options to choose from.
And I can withdraw my funds anytime I want.
So, even though it’s a p2p lending platform, in fact, I’m financing the operations of the lending platforms from Robocash group. The p2p lending platform allows these lending companies to free up capital and issue more loans to their clients.
How are my investments doing
I’ve added 500 EUR to my account last month and so far, I’ve earned 5.42 EUR interest. From a revenue point of view, Robo.cash should be one of my top performers, with its 12% interest rate loans.
I’ve noticed that sometimes more than half of the loans I’m invested in are late with their payments, but the buyback kicks in and all is fine.
I’m planning to keep my funds here for at least 6 months and check what the actual return from the platform is.
Conclusions on Robo.cash
I like the minimalistic investment style offered by Robo.cash. It’s lending companies need capital to expand its operations, so they use Robo.cash to get that capital from retail investors. In return, they offer a 12% interest rate.
There’s no need to complicate this process by displaying individual loans.
The 12% interest rate currently offered is at par with what other similar European p2p lending platforms offer. Offering a buyback guarantee also makes it easier for me to invest my funds here.
What I’m conflicted about is that its loan originators are offering their clients mostly payday loans with high-interest rates. Most of the people that take these loans would be better without them. While I enjoy a profit, it might be I’m building it on the misery of others.
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My initial thoughts on Robo.cash
Robo.cash is a peer-to-peer lending platform based in Croatia that offers short-term consumer loans to its investors. The loans currently available come wi