In this Grupeer review I will share my thoughts about their P2P platform. It’s based on the information I gathered over time and I’m fully unbaised in my review. Here you will have all the information you need to know about Grupeer and P2P lending on their platform.
IMPORTANT NEWS 30 APRIL 2020:
They released yet another blogpost almost 3 weeks after the last one. Not a sound to the public or on social media to investors. Now they have come up with a 2 year plan they say to get things back on track. 2 year plan after 2 months with a stop sounds like a number just put out there. They still claim the debt collecting is the issue and keeps them from getting money to pay back investors, but the problem here is that not all have stopped paying so how can they claim this? Even one LO has said they want to transfer but can’t do that right now since they dont trust Grupeer to be able to let the money go to the investors so they can withdraw it if needed. This is not looking good at all right now, so we have to wait and see.
IMPORTANT NEWS 13 APRIL 2020:
Grupeer made a new announcement on their blog Saying they are working to fix the issues. You can read it here. Problem here is that they are not addressing the public on social media or answering investors, more like dodging everyone. Some Loan originators say they have trouble getting in touch with Grupeer also and some of the loans listed on the platform look like it might have been fake projects mixed with real ones. Still have a bad feeling about all of this.
IMPORTANT NEWS 31 MARCH 2020:
As of 31 March Grupeer have paused most of their activity and stopped all payments blaming the Corona pandemic. I Feel this is a bad sign and don’t think anyone should invest in them before they have provided more information and resolved their problems. I will update on this when more info comes. If this is a scam (time will tell) I’ve been fooled and lost money like with Enestio. If this is the case I apologise for even mentioning and promoting them to others.
Grupeer is one of the platforms that’s getting more and more attention and investors because of the easy going interface and setup for the platform. Grupeer’s platform is very easy to navigate, so that’s a huge plus for me.
They have posted that the current return rate on investments at Grupeer is around 13.15%, with a total of 73 million Euros in funded loans from investors at the start of March 2020. They also have over 26 000 Investors from around the world and increasing each day that goes by.
Grupeer have buyback guarantee so you can feel more secure on the loans you invest in. They also have one of the best things in all P2P related platforms to make it more passive, which is that they have auto invest features that make everything run smoothly if you just set it all up from the beginning with the criteria you want.
|Grupeer is an Latvian company based in Riga so they follow EU laws for all the loan originators and investors on their platform. They operate in EU and prefer that all the investors are EU citizens with an EU bank account.
They say that they can allow people from outside EU to invest, but you will have to send in more documents and it’s more work, so I think that’s not a big percentage of their business as yet. The Company registered in 2016 and got their platform up and running at the start of 2017, so they are rather new to the P2P and crowdfunding world.
What Countries are accepted?
Grupeer accept money transfers from the countries within the European Economic Area. This includes all EU Member States plus Iceland, Norway, Liechtenstein and Switzerland. So if you are a citizen in one of these countries you can apply for a registration at the Grupeer Platform.
Grupeer is acting under the AML (Anti-Money Laundering) legal requirements so your bank has to be a licensed credit institution.
A non-banking financial institution is a financial institution that does not have a full banking license. Examples of these include pawn shops, insurance firms, microloan organizations and currency exchanges.
Note that to register an account, you need to be an adult capable person over 18 years old with the said payment account in your name at the bank used for transfers to and from the platform.
There can be more restrictions in Grupeer terms for your registration depending on your location. Therefore Grupeer reserves the right to decline any particular application. If this occurs each applicant will be informed individually by phone or email.
What type of loans can you invest in at Grupeer?
They have different types of loans to choose from on Grupeer. Right now there is: real-estate Developments, Mortgage loans, Car loans, Personal loans and Business loans to pick from. So you can diversify your investments in more than one type of loan. If you prefer shorter term investments, Grupeer can offer loans of only 2-3 months. These short term loans gets covered fast and aren’t so often posted on the platform, unlike the 8-12 month loans.
Grupeer buyback guarantee
Grupeer have this guarantee on all the loans today which is good to see. They where one of the first platforms that implemented Buyback guarantee as a criteria for the loan originators that wants their loans posted on the platform as an extra safetynet.
Normally this guarantee kicks in after 60 days like many other platforms out there. One of the loan originators stands out and buy back the loans after it’s late for only 15 days.
This information you can easily see in the loan details page before you choose to invest.
Grupeer Secondary market
Grupeer doesn’t have a Secondary market yet. They have said that they are working on it but when this will be released no one knows right now.
You should only invest money you can be without for the period of the investment time for the loans you choose to invest in when there is no Secondary market.
If you invest money you want to get back after 1 month you already made a mistake and invested money you can’t afford to. So simply don’t do that and you will be fine.
Grupeer stability fund
This is a new investment option Grupeer will launch soon. It will let you buy a part of property that’s already generating income to get a stable passive source of income. This is a good thing for those of us that can’t afford to buy the whole development to still get the hands on a fraction of it. They have announced the interest will be from 4% up to 8% yearly. When they launch this stability fund it will be for those who want to invest in a safer long term option usually then what you see on most P2P platforms.
Loan originators on Grupeer
They have over 20 different loan originators right now from 8 different countries on their platform.
Grupeer lists all of the Loan originators on their platform with an information page. There you can find out information on where they are from, how many loans they have listed and if there is a Buyback guarantee on the loans. They link to the Loan originators websites and write a little about who they are and so on.
I wish there would be more information than what’s available on Grupeer on these Loan originators. So I hope they update this in the future with more info.
Grupeer’s blog is a good read if you invest there. They post articles and information on not only their own platform but also information in the general P2P community. They also announce new loan originators that can be smart to read up on. You find the blog here.
To set up your auto invest at Grupeer you just need to do a few steps. After you login to the account you go to Invest in the top bar of the page and then click on Auto-invest.
On this page you set all the criterias you want for the auto invest feature. As you can see in the printscreen below, everything is straight forward. I will explain all of it after the printscreen.
Pick a Name for your auto-invest portfolio to begin with. Then pick what Loan Types, Country and Loan originators you want to invest in.
Then you pick what interest rates you want it to invest in, like the picture was showing here it’s set to 13-25% and also the Cashback option is checked so it will invest in cashback deals if possible.
After that you will choose the Term Interval ( the length and repayment time) for the loans you invest in. For me I would try and go for loans between 1-24 months, just to not get so long periods for the loans since they don’t have a Secondary market yet.
Strategy Auto-invest limit: here you have a box under it saying “Strategy Auto-invest unlimited”. I would check this box so you have everything flowing to the day you want to stop investing.
Max amount per loan: You will set the max amount that it will invest in each single loan for you. You should set it to a limit you are comfortable with. I would have this limit up to 50 per loan so that the money gets spread out.
Repayment type: There are 3 different ways the repayments can be made. The options are Ballon, Bullet and Amortized repayment schedules. You can pick all of them or just the one, it’s mostly up to you how you want it to be repaid. In the end I would say it doesn’t matter.
If you want the most out of the investment it’s good to pick Bullet or Amortized repayment so you can reinvest the monthly repayment for a higher return over time.
Quick explanation of the difference on these 3 repayment types:
Bullet is when you get interest paid out every month. But the principal invested will be paid out in full at the end of the loan period.
Balloon means that both the interest and principal will be paid out at the end of the loan period.
Amortized will be the one where they repay both a part of the principal and interest each month.
Valid to Date: this is how long you want the auto-invest to keep going. I would leave this open and not set a date, just to keep it going.
Currency: this one is set to EUR and since they don’t have other currencies for now there is nothing to change here.
Buyback guarantee: Here you can pick with or without buyback or both. I would recommend only select Yes on that one so you have the buyback guarantee on all the loans.
Now everything is set up and you just check the box that you accept the agreement and click on CREATE.
All done, now it will start investing for you with the set criteria.
Grupeer account overview & statistics
On Grupeer you have your own overview of the account. It will show basic information such as Account balance, that lists Available money for investments and Current investments you made. And then you have the part of Income total, which shows amount received for Interest, Cashback, Bonus and Referrals.
And as of 2 March 2020 Grupeer finally added more to this and made the Portfolio statistics section for all investors. This was something many was waiting for since we want to have more information on how our portfolios are doing it and in an easy way.
This section will show you more information like how many loans and amounts you have in Business Loans and Development Projects. How many loans you have made with Auto invest and Manually. Together with the Historical Section which shows: Investments, Received interest (how many times you received it), Received principal, Defaulted Payments, Deposits (times and total amount) and Withdrawals (Times and total amount)
Grupeer payment notification
Grupeer will send you an automatic email each day you get interest paid out to your account. This helps out to alert you to go in and reinvest if you don’t have auto invest set up already. This email is sent out around 22:00 at night and will cover all payments made that day up to the time it’s sent. If you get interest paid out many different days you will get this email for each day it happens.
Below you can see how it looks like one day u got it 7 February 2020.
There are more and more P2P & Crowdlending platforms showing up now. Since it’s getting big attraction in media and online there can be hard to figure out which of them that’s best suited for you.
Here is some of the other platforms that can be worth looking into:
Bulkestate, Crowdestate, Mintos, Crowdestor & Estateguru
For more P2P platforms look at my P2P comparison page here.
Grupeer investment risks
Like most of the P2P platforms out there you have 2 major things that can go wrong that I will point out in this Grupeer review.
First the Platform can go bankrupt and can cause problems. Second if the loan originator on the platform goes bust and can’t afford the buyback. Since Grupeer haven’t been on the market so long there is too short of a timespan to be sure that things will be okay forever. No investment is 100% safe and it will never be, so I can’t see a problem with it right now.
A good thing is that they offer Buyback loans that takes away the risk of the individual person or company to ditch payment and leave you hanging with unpaid investments, this normally kicks in after 60 days so your safe there.
So to minimize the risk you should always try and spread out your investment on as many loan originators on the platform and loans as possible. You can also try and go after loans with collateral but that won’t always help if the loan originator goes bus.
Grupeer referral program
Grupeer offers the investors on the platform to use the referral program they have. If someone joins the platform through the link you have it will give some extra return for the one referring more investors to Grupeer.
This is a way to earn additional income from the referred persons investments on the platform for the first 6 months. You will get a small percentage from what the referred person invest in under this time. It varies from 0.50% up to 1.25% depending on the loan period of the investment they get involved with in this time period. Grupeer will add the income from the referral program the day after the investment is made as long they registered through your link.
The referral link you get is available under the refer a friend section when you are logged in at Grupeer. They also have some banners and so if you have a website or blog so that’s a nice touch.
The person that gets referred don’t seem to get anything extra for joining through the referral program as of now. Maybe this will change in the future though.
How to start investing on the Grupeer platform
If you want to invest at Grupeer you need to be more than 18 years old. Nothing in P2P is 100% secure so always have that in your mind. It’s like most of the P2P sites out there today and quite easy to set up an account.
You need to fill in some personal information and your email adress to start. Once the account is activated you can deposit money and find the projects you’re interested in.
You will also be required to send in some documents so that it’s going to be easy for later to withdraw your earnings when that time comes. For example, passport or other ID plus proof of address. I always say, don’t wait with this, because it’s like everything else in life. When you want something, you want it now ( at least I’m like that). I sent in everything the same day I started the account so it was ready to go if necessary.
The minimum deposit on Grupeer is only 10 Euros. This is lower than many other platforms that require an investment of 100 EUROS or more to start. So this is a good platform to begin with if you just want to try investing smaller amounts.
You should never send anything other then Euros to the Grupeer platform, because all the loans are in EURO. If you send other currencies, they will either resend the money and take a fee or exchange it on your behalf. That can be at a worse exchange rate than you can find yourself, so always keep this in mind with every platform you’re investing in. Research is your best friend when working with money!
When and if you are going to withdraw money that you have available on the account you can just go to the Deposit / withdrawal section in the top bar. You will need to use the same account from when you made a deposit You can register more than one bank account but you will have to make a deposit and send in proof of ownership on all of them to be able to use more than one. They will issue the transfer within 3 working days which is standard in P2P platforms nowadays.
Like the headline says, Grupeer sometimes offer Cashback on some of the loans in periods over the year. This will be like a campaign they have with a special loan originator or other criteria they set to let the investors get something extra on the loans they choose to invest in.
The normal cashback they offer is 1% and it’s calculated from the amount you invest.
You can include cashback deals in your auto invest feature also. If you have the auto invest set to a rate from say 12% and up and have cash back included, it can pick up loans that are at 11% but with the 1% cashback they are treated the same as a 12% loan.
Grupeer customer service
I would say that the customer service on Grupper is doing an okay job. I have only used email to contact them but I usually get a response within 1-2 days if it’s not a weekend ofc which can make it a few days more. Since they added over 20 employees in 2018 it shows that they try and keep up with the demand from all the investors and new loan originators they keep adding.
They also have telephone support on workdays between 09.00 – 16.00 in English, German and Spanish if there is a more urgent task you need help with.
Goal for investing in Grupeer:
The goal for Grupeer is to get an annual return of over 11% . I think this is a decent goal to set when they have an average on 13.1% today.
I hope they will add more loan originators and statistics in the future since they have been operating for some time now. But I can’t predict the future so I’m going to keep investigating and do my own research on the projects listed there.
Pros at Grupeer
- Easy going website
- Good average interest on loans
- Buyback guarantees on most of the loans
- The loan originators have to invest minimum 5% themselves in every loan. That makes them more committed to do better research on those who borrow the money.
- Sometimes they do cashback on specific loans, that can give you an extra 1% in promotions. They will highlight these projects on the platform.
Cons at Grupeer
- No secondary market
- There could be more statistics and information on the Loan originators.
- Rather new to the world of P2P, registered in 2016. The platform was up and running at the start of 2017.
Important: Even if there is a Buyback Guarantee / Fund, Group Guarantee, collateral connected to a loan and so on there is always a chance you can lose your whole investment. There is nothing such as risk free investment, this goes for P2P, Stocks, Bonds, Property or anything else. Don’t invest money you can’t afford to lose.
I hope this Grupeer review explains some of the questions and gave you a hint of what’s going on there.
If you have any questions or thoughts just leave a comment.