Grupeer Review

Since I started investing and writing this review many red flags have appeared on the platform after the cononavirus crisis. I do not recommend investing with Grupeer at the moment until the dust settles. I would recommend checking Mintos, Lendermarket, or ViaInvest.

In this Grupeer review, we will take a look at the rates, loans buyback guarantee, etc. of this p2p lending platform. Also, I would like everyone to know that this is an 100% impartial and unbiased review.

What Is Grupeer?

Grupeer is a Latvian peer-to-peer lending marketplace which has been established in February 2017. There is about €53 million in issued loans and there are more than 17,500 investors active in the platform (as of October 2019), and you can start investing from only €10. Through Grupeer you can invest in business loans and development projects. The loans are pre-funded from various loan originators and listed in the platform where you can invest in those loans and make money when those businesses pay you back with interest.

For most of the loans, the principal is paid at the end of the loan term and the investor gets the interest monthly. But, the have amortized loans as well and you receive both principal and interest monthly. The key difference of amortizing loans is that principal repayment will take place over the loan period and interest is calculated from residual loan amount (total loan amount less principal repayments according to schedule). And this repayment type is available only for Monify loans. Loans on Grupeer are listed only in EUR.

Rates

Rates on Grupeer start from 10% and go as high as 14% at the moment. Occasionally you can find loans with 15% yield though. Also, Grupeer runs periodic cashback campaigns (Like the do now, and they have that icon as demonstrated with the red arrow) that can help you boost your returns so take advantage of them when available.

Loan liquidity

Grupeer’s liquidity has improved during the past months and you wouldn’t have a problem investing any amount without cash drag. Currently (May 2019), there are about 240 different loans available. The loans are fairly large and can be as high as €100,000 so you could invest large sums if you like any particular project.

Buyback Guarantee

In case the borrower delays the current payment for the loan for a period exceeding 15 or 60 calendar days, the loan originator that issued this loans is obliged to immediately buy back your share in the loan in the amount of outstanding principal of the claim plus any interest accrued for the period you held the loan. At the moment all deals offered on Grupeer are secured with buyback guarantee but it would be very easy to recognize a buyback secured loan since it has a green badge next to it as shown below.

Auto-invest

Grupeer offers the possibility of auto-investing. I rarely use auto-invest in any platform but it is nice to know that it’s there. You can create different auto-invest strategies with quite differing parameters and you can also prioritize any strategy that you prefer. For example, you can prioritize strategies that buy loans with higher yields. You can check the screenshot to see for yourself the available settings.

Risks

Since all loans on Grupeer come with Buyback Guarantee the risk is whether the loan originator will be able to fulfill their promise to you. For more information about peer-to-peer lending risks please check the “What Is Peer-to-Peer Lending” article.

Secondary Market

Currently, Grupeer doesn’t have a secondary market and this is one of the few drawbacks of the platform. The Secondary Market is a work in progress as you can see in the following screenshot. Until then it is important to note that you cannot cancel or sell your investments once you purchase a loan.

Fees

Grupeer charges no fees for investing in their platform. This is very common with p2p lending platforms.

Transparency

As you will be able to see from the following screenshots, Grupeer provides a lot of information about the business loans and especially the development projects. It even gives the exact address of the project and a link that you can watch a live video of the operations. That’s pretty cool!

Risks

Since all loans on Grupeer come with Buyback Guarantee the risk is whether the loan originator will be able to fulfill their promise to you. For more information about peer-to-peer lending risks please check the “What Is Peer-to-Peer Lending” article.

Grupeer Stability Fund

This is a work in progress. The Stability Fund is an opportunity to literally buy a square meter in a real estate property, with a simple click of the button. This way an investor will be an owner of a fraction in the office building or any other development project which already generates income. After investing in this product, the investor will receive a stable rental income from 4% to 8% yearly. This is ideal for people for a very long investment horizon. At the time of this Grupeer review writing it has not been released.

Grupeer Sign Up Process

The sign up process is pretty simple. You can click here and go through the steps on the platform. You just put your initial info and verify your email. After you do that it will ask you for some more info and to upload a picture of your ID card. The entire process is pretty simple and it shouldn’t take you more than 5 minutes to complete your registration.

Alternative Platforms

Grupeers’ main competitors are Mintos, CrowdEstate, Envestio, Crowdestor, BulkEstate and EstateGuru. The main difference between CrowdEstate, Envestio, Crowdestor, BulkEstate and EstateGuru is that Grupeers’ loans are pre-funded and come with Buyback Guarantee.

Grupeer Review – Conclusion

Grupeer has the whole package with a great looking and functional website, high returns and high level of transparency. I don’t like the fact that there is no secondary market but that’s pretty much the only thing I didn’t like about the platform and even that is a work in progress.

If you would like to start investing in Grupeer I would appreciate it if you could use my referral link 

If you would like to add something in this Grupeer review please leave your comments below.

Until Next Time,

Peter