I would like to point out that this Grupeer review is unbiased and based solely on my personal experience investing my own money on the P2P lending platform over the past 7 months.
As usual, I am going to be fully transparent about the amount I invested, my returns and the cashflow my Grupeer account is currently generating for me each month.
The crowdlending platform Grupeer was founded in 2016 in Riga, Latvia. Grupeer is a little different compared to other peer to peer lending marketplaces, as most of the offers are secured business loans and project development loans (like real-estate).
As of right now, they offer loan deals from 14 countries and 26 loan originators and 9.107 investors funded loans worth over 31 million euros.
Grupeer’s Buyback Guarantee
I like the fact that at the time of writing, all the loans on Grupeer come with a buyback guarantee by the loan originator. That means that in case a loan payment is more than 60 days late, the loan originator guarantees to pay you back the loan amount as well as accrued interest. Some originators like Finsputnik Platforma offer even shorter buyback guarantees of 15 days on some of their business loans.
Nonetheless, I think it’s important to know what happens if a loan originator goes bankrupt and can’t buy back a delayed or defaulted loan. Here is Grupeer’s reply when asked about the subject:
In this improbable scenario (as all our partners get checked by our analysts), the claiming rights will belong to investors, not Grupeer. However, this doesn’t mean that you will be left alone vis-à-vis the borrower. All investors who have been affected by a failing loan originator will be represented as a group by highly qualified lawyers appointed by Grupeer for this matter. The lawyers will communicate with the liquidator of the loan originator company and will ensure that the claiming rights of Grupeer investors are satisfied. Grupeer will be managing all issues connected to this process and will ensure investors’ interests are satisfied and handled in the best possible manner and invested amounts are returned in full.
My experience after 7 months
I started investing on Grupeer 7 months ago, in the beginning of October 2018. I liked the option to diversify my P2P lending funds into business loans as well as real-estate backed loans, as some of my other investments like Mintos and Iuvo Group are mostly consumer loans. In addition, the high interest rates on Grupeer were also very attractive from the beginning.
- Oct. 2nd, 2018: 500€ deposit
- Dec. 11th, 2018: 500€ deposit
- Apr. 19th, 2019: 500€ deposit
I also just wired another 500€ to my account this morning, which should be credited to my account by tomorrow (May 8th).
My Grupeer dashboard
I haven’t made any withdrawals yet, as I’ve been very happy with the returns and the timely interest and principal payments so far.
My monthly Income and Returns from Grupeer
My monthly Grupeer income has been steadily increasing month after month. My investment generated 22,52€ in April (+10,91€ compared to last month).
The platform’s Auto-invest reliably reinvests the interest and principal payments I receive every month. In case you’re wondering, here is my internal rate of return so far:
I’m very satisfied with those numbers! My returns also include 1% cashback I received on some loans I bought in April.
Grupeer calls this “Warm Grupeer Welcome” – for 7 days after a new loan originator joins the platform, you get an instant 1% cashback credited to your account for your investments into that originator’s loans.
My Auto invest settings
My Grupeer Auto-invest settings are pretty basic. I selected all the available loan originators and countries and selected 13% as the lowest interest rate I want to invest in.
Grupeer recently added the ‘including CashBack’ box, so make sure you check that as well to include loans that pay you 1% cashback on your investment.
I chose 10€ as the max amount per loan, as I want to be as diversified as possible and Grupeer likes to split up development project loans into several different loan deals. That’s also one of my few gripes with the platform so far and I hope they add the option to set a max amount per project in the future as well.
For whatever reason, you also need to set a ‘Valid Till date’ for your Auto-invest, so just choose some time a couple of years in the future.
When I feel that the Auto-invest is buying too many project development deals (real-estate), I deselect loan originators like Primo Invest for a while to rebalance my loan portfolio.
All in all, I really like Grupeer as a crowdlending platform and I think it’s a great way to diversify your peer to peer investments into more business and real-estate backed loans (also check out my Envestio review for more business loans).
There is no shortage of high-interest paying loans (13% and above) and my interest as well as principal payments have always arrived on time so far. Hopefully it stays that way! I also like that all the loans come with a buyback guarantee.
Update (June 13th): How to get a 10€ Bonus on Grupeer
All you need to do is to sign up to Grupeer here until the end of June and complete the verification process to receive a 10€ Bonus for your investments! The Bonus will then be added to your account within a week.
Grupeer interview with Vlad & Alla
Last but not least, I met the Grupeer team in their new office in Riga in the beginning of June and they were so kind to answer all of my questions. If you haven’t read or seen my interview with Vlad (COO) and Alla (Co-Owner) yet, you can find it here.
What was your experience?
Are you invested on Grupeer as well? If yes, I would love to hear about your experience in the comments!
Video review of Grupeer