What is Grupeer?
Grupeer is a crowdlending platform based in Riga, the capital city of Latvia. As of January 2019, it had already financed loans for an accumulated value of more than 18 million euros and had more than 5,200 active investors from more than 67 countries. It stands out for offering a high return to its investors, currently more than 14% on average, and the average maturity of the loans is 12 months. Let’s begin with my Grupeer review in 2019.
What type of loans are available?
Grupeer currently allows investing in various types of pre-issued loans (for the purchase of cars or boats, mortgage loans, consumer loans, etc.) as well as in development projects of construction companies. As of February 2019, a total of 16 loan origination companies are registered in the platform. In the following screenshot you can see some of the available loans to invest at this moment:
In loans for development projects, real estate serves as collateral, which offers an additional guarantee. An example of this type of loans is the following:
Who can invest in Grupeer?
In accordance with AML (Anti Money Laundering) legal requirements, Grupeer only accepts money transfers from accounts opened with licensed credit institutions in the countries of the European Economic Area (all EU Member States, Norway, Iceland, and Liechtenstein), as well as Switzerland. Accordingly, citizens/residents of these countries can register and make investments through the Grupeer Platform. The same is valid for legal entities.
What are the possible ways of money transfer?
The only possible means of payment at the moment is a bank transfer. This is due to AML (Anti Money Laundering) legislation requirements. For security purposes, withdrawal of funds is possible only to a confirmed bank account, i.e. the account which you transferred funds from to the Platform bank account and which your user identification number is associated with.
What is the currency of investment and which is the minimum amount?
Currently, Grupeer only accepts investments in euros, and the minimum amount to invest in a single loan is €10.
Is there a buyback guarantee?
At the time of writing this article all the loans offered by the platform are protected by the buyback guarantee. The Grupeer buyback guarantee goes into action in the event that the borrower delays the payment of his loan for a period exceeding 60 calendar days. In this case, the credit company that issued the loan is obliged to immediately buy back the shares in the loan of all the investors, in the amount of the outstanding principal of the claim and of all the accrued, but not paid, interests. This includes, of course, the interests accrued during the days of delay.
Currently, all the loans sold through Grupeer are up to date with payment, that is, they do not have delays in payments. Undoubtedly, this factor is crucial to make my opinion and determinant to the Grupeer review in 2019. But in the case of late payment over 60 days, the buyback guarantee would come into force.
In addition, Grupeer also audits the financial statements of loan originators and verifies that the projects are actually being carried out, and also ensures that the loan originator is able to satisfy the buyback guarantee.
Is there an auto-investment tool?
Grupeer offers an auto-investment tool to design automated investment strategies based on a set of selectable parameters, such as the desired return, the term of the loan, or the loan originator.
Is there a secondary market?
At the time of writing this article, the platform does not offer a secondary market in which investors can sell their shares in loans. This implies that, once you invest in a certain loan, you will have to wait until it expires in order to recover all the capital invested.
Overall Information Table
|Launching date||February 2017|
|Loans funded so far||€18.870.792|
|Loan type||Business Loans, Development Projects|
|Offered interest rates||10% – 15%|
|Buyback Guarantee||YES (in ALL loans)|
|Secondary Market||NO (work in progress)|
|Loans Shortage||Usually NOT|
My Grupeer portfolio
I have been investing in Grupeer since 30th August 2018. In all this time I have only found a shortage of loans to invest in once, and it was solved in a couple of days. The payments have always been punctual, and the buyback guarantee has never been needed: all the lenders have paid punctually month by month. In the following screenshot you can see the summary of my situation in Grupeer, on March 3, 2019:
Grupeer review 2019: Final conclusions
My experience with this platform so far has been excellent. Therefore, my Grupeer review in 2019 must be nothing but positive. In other platforms, I have found that many loans are late with payments. It is not a big deal because I only invest in loans that come with a buyback guarantee, so I always get both the capital invested and the interest generated at the end. However, these delays make monthly income irregular. Grupeer instead works like a Swiss clock: no loan has been delayed in the payment so far, so the monthly income is completely predictable.
You can get returns above 14%, all loans come with buyback guarantee, and you can also invest in real estate development projects. In addition, there are often cashback promotions (you get paid immediately a percentage, usually 1%, of the capital you invest).
To put some snag, for some investors it can be a problem that all loans have a long duration (over 10-12 months). Given that there is no secondary market, for the time being, it implies not being able to dispose of this money in case of emergencies. However, for me, it is not a disadvantage, because I only invest money that I am completely sure that I will not need.
For all the above, without a doubt, Grupeer is one of my preferred crowdlending platforms, and I’m definitely going to add more funds sooner than later.