Update April 2020: Grupeer is having some serious trouble right now. This review is written 10 months ago and with the current market conditions: I would not recommend you invest in Grupeer at this moment.
Do you want to massively grow your passive income? Grupeer is the way to go! In this Grupeer review, I will show you how I get extra money every month just by automatically investing it in this platform.
If there is one asset type I love, it’s Peer-to-Peer lending. Peer-to-Peer lending is lending money to individual people on online platforms, that give you interest income over time.
Peer-to-Peer lending is known for its high yield, can be automated, and you can minimize the risk yourself.
I started P2P lending in Europe beginning of 2018. Since then I’m trying out different platforms to diversify my investments.
In 2019 I am investing in some different platforms, which you can read through my monthly reports.
If you want to check out the current cashback bonuses, check them out here!
- How To Start With Peer-to-Peer Investing
- What Are The Risks Associated With Peer-to-Peer Investing (Important!)
- 9 European Real Estate Crowdfunding Platforms For Passive Income
Grupeer Review: Introduction To Grupeer
Grupeer is founded in 2016 in Latvia. It has given out €42 million in loans to investors in 77 countries.
Grupeer is a typical Peer-to-Peer lending platform where you invest in loans and get back your initial investment with interest. But Grupeer has some twists to the traditional model.
Grupeer offers business and project loans, where you can also invest in real estate development projects. Plus, they don’t give loans to private individuals.
The loan terms mostly vary between 10 and 24 months, and the interest rate varies between 10 and 15%. Grupeer reports an average interest rate of 13.5%, which is really good compared to other Peer-to-Peer platforms.
Grupeer has 26 loan originators currently, so you can also diversify your loans within the platform.
On top of that Grupeer has a buyback guarantee of all loans, which means that if somebody doesn’t pay you back you will get your money back immediately.
Besides that, they have an auto invest setting. Currently, there is no secondary market yet, but they state on their website that it’s on its way.
Grupeer Review: My First Thoughts On The Platform
Grupeer works just as most P2P lending platforms in that they match borrowers and lenders. As the lender you deposit money on the platform, you select the loans that you’re interested in funding, and you receive the stated interest rate on the loan. For Grupeer, however, there are no people borrowing the money but businesses.
When you look at Grupeer’s platform, you see that the loan amounts provided are much bigger than with other platforms that are using consumer loans. There are fewer loans with bigger amounts but despite that, there is still enough loans and loan originators to completely diversify your investments.
The Sign-Up Process
The sign-up process was easy and took 2 days in total, from registering, depositing money, and making my account ready to invest.
Using the Grupeer platform is very intuitive. You can go to the ‘Invest’ dropdown that gives you all the functionality you need. You can check all loan deals and development projects, where you can invest directly.
In the dropdown is also the secondary market that is under development and the auto-invest portfolios.
One of the main differences between Grupeer and other P2P platforms is that they offer you detailed information about every loan and development project.
You can see the pictures of how it’s going to look like, how it currently looks, and what the purpose of the loan is. You can go to financial information, projects information, or anything else you might want to know.
See this example below:
When we go to project information, you will see this:
So yeah, when I say detailed I mean detailed!
You can also read what exactly your money is going to be used for, which gives transparency that I love.
Make Your First Investment Using Grupeer
Depositing your money using Grupeer is super easy! As soon as your deposited money is visible on your account, you’re good to go.
First, you would have to filter the projects of your preference. I will invest in projects with more than 12% interest rates and with more than 3 months to go.
You can select your preferred loan manually, let’s pick an example where we invest in a 12% loan with 12 months until maturity:
Now you click your blue suitcase at the top of the page, so that your order is added.
You can confirm the order here:
The only downside to this is that Grupeer does not sort loans by interest rate. This means that you have to search manually for loans that have a high interest rate and decrease your minimum interest rate step by step to find the higher loan originators.
This is not an issue when we use the auto-invest feature!
Using The Auto Invest Feature
Grupeer offers the possibility of auto investing.
Personally, I love the feature of auto investing so that it’s really passive income that’s coming in. I love investing in Peer-to-Peer platforms that have auto invest functionalities, so I can set it and forget it.
With Grupeer, you can create different auto invest strategies that have different settings.
Let’s dive into the exact Gupeer auto invest settings that I use:
- Loan type: all loan types (mortgage loan, car loan, personal loan, business loan and development project)
- Country: all
- Loan originator: all
- Interest rate interval: I set it from 12-25% as I would like to have returns higher than 12%. It’s working well at the moment
- Term interval: I set it to 3-36 months as I don’t like very short-term loans. 36 months is okay for me as I don’t need the money any time soon
- Strategy Auto-invest limit: I don’t have a maximum at the moment
- Max amount per loan: I like to diversify my investment across different loans to keep the risk lower, so I keep this at 10 EUR
- Repayment type: I choose both since development projects often have non-amortized loans
Why You Only Need One Auto Invest Strategy
As I’ve experienced until now, Grupeer automatically selects the loan with the highest interest rate available – within your desired interest rate. If that wouldn’t be the case, I would create multiple auto invest strategies from high to lower yield.
What About The Secondary Market?
Grupeer doesn’t have a secondary market yet, they’re saying for a while now that it’s coming. Unfortunately, it’s not there yet but it’s clear that it will be introduced at some point. I guess we just have to be patient and wait.
It’s important to keep in mind that once you’ve invested in a loan with Grupeer, you’ve committed and have to wait until the loan expires. Some people might be bothered by that, so take this into consideration.
Personally, I invest for the long term and don’t plan to withdraw money any time soon. A secondary market will be a good addition to their platform, but it’s not mandatory for me.
Buyback Guarantee On Loans
Important to mention is that NOT all loans on Grupeer have a buyback guarantee. Before they used to have that, but this function is changed. You need to think about this when you’re investing.
Personally I only invest in loans with buyback guarantees. That means that when a loan originator is late with paying back the loan or defaulting, you still get both your interest income and the principal payments.
Generally the buyback guarantee will be activated when the delay in payment is more than 60 calendar days.
Then There Is The Grupeer Stability Fund
When writing this review I read on their website about the Grupeer Stability Fund. This will allow investors to buy part of income-generating real estate projects. You can buy a number of square meters, which will make you an investor in those real estate projects and give you a stable rental income.
The details haven’t been disclosed yet, but I like the concept. When they’re launching it, I’ll take a closer look to see exactly what it entails.
Risks When Investing In Grupeer
Investing comes with a risk, always. It doesn’t matter which asset category you’re investing in. Currently, I have around 5-10% of my net worth invested in P2P lending. That’s the amount where I’m not putting all my eggs in one basket – and I’m taking advantage of maximum returns.
With higher risk, comes the potential of a high reward. Peer-to-Peer lending is currently providing me with the most consistent high returns on an ongoing basis.
Risks that you might face with P2P lending should be disclosed. The biggest risks are:
- Borrower defaults on the loan – eliminated by buyback guarantees.
- Loan originator going bankrupt
- The platform itself goes bankrupt
I recommend doing some research before investing in a platform – so good thing that you’re reading this article now. Let’s start wrapping it up, so you can start investing with Grupeer asap!
Quick Summary – Pros And Cons Of Grupeer
Grupeer is one of my absolute favorite Peer-to-Peer platforms in Europe. Grupeer has many advantages, but some things can be improved. It seems from their website that they’re really working on developing the platform.
Pros of Grupeer:
- Buyback guarantees on loans, preventing borrower bankruptcy
- High interest rates up to 15%
- Detailed information of all loans, resulting in clarity on what your money is used for
- Great diversification options among all the loan originators
- Easy to use platform that is very intuitive, with options like auto investing and manual investing
- Grupeer managers invest in projects, which means that they trust what they’re doing
Cons of Grupeer:
- Secondary market is still under development
- Investor overview could be more detailed with information like annualized return
- Fewer but larger available loans compared to other platforms
Overall I am very happy with Grupeer. Their platform is solid, since Grupeer is only accepting less than 20% of projects that are offered to them. They don’t take anything that comes their way, which means they do their research and check the numbers.
Some Final Words
The platform is developing and continuously being improved. It’s offering an easy user experience and great investment opportunities. The platform has some things that could be improved, but nothing that would hold me back from investing with Grupeer.
What is your impression after the Grupeer review? Are you investing in Peer-to-Peer platforms?