In this Peerberry review you will get a great insight about them and how this P2P marketplace works. Peerberry is a platform / marketplace where different loan originators connect their loans for investors to take part in and earn interest on a monthly basis. The same way as if a bank would lend out money and take interest, you will get a piece of it. Peerberry has over 20 000 investors around the EU that have funded more than €244 000 000 loans today. Most of the loans on Perrberry are short term around 1 month so you have faster liquidity as of many other platforms out there.
You get an average of 13% interest on loans at Peerberry, the loans range from 10.5% up to 16% today. It’s an easy to use website, you can both manually invest as well as use their auto invest system that can make it as passive as possible. Every loan on Peerberry have Buyback guarantee. And a great extra security they have added to most of the loans is a Group guarantee to be more able to cover all liabilities from smaller Loan originators if needed.
Background and the Platform
Peerberry was started in 2017 by the biggest credit institute on the platform today, Avantus Group. Since then the platform has grown much and is in the top 5 biggest P2P marketplaces in the EU 2020. Peerberry is registered and operates from Latvia in the city of Riga.
They have all the workforce of Perrberry visible on the website with title, picture and LinkedIn information provided. The CEO Arunas Lekavicius has been working in finance for many years and has a team of 9 more people working in Peerberry as of now.
Peerbery is working as expected from a P2P lending platform. It’s easy to navigate the website and it’s full of information on the loans that are listed and loan originators providing them. You will find statistics and a good help section if needed.
A nice touch from Peerberry is that you get weekly reports by email. This includes: earned interest, principal repayments, account holdings, amount invested in loans, and also both deposits and withdrawals made this period.
The website has 3 languages to pick from, English, German and Spanish.
What type of loans can you invest in at Peerberry?
Peerberry have a range of different loans to invest in today. You can invest in Personal loans both short and long term, Payday loans, Real estate loans, Business loans, Development and Leasing/Car loans. The shorter term loans are usually payday and personal loans. The longer term loans are real estate, business, development and car loans can be 1-4 years.
They usually have thousands of loans to pick from each month which gives you less chance for money drag.
These loans are listed by the 21 different loan originators that are connected to the platform. 15 of these loan originators are subsidiaries of Aventus Group, 5 are subsidiaries of GoFingo. And the last loan originator is Lithome, a real estate developer. In the end of this Peerberry review you can find a list of them all.
Repayment structures for the loans on Peerberry
One good thing with all the loans that are listed on Peerberry is that they have the same repayment structure for interest. All the loans have interest repayment each month. This goes for all the loans if it’s a short term loan less than a month or longer loans for a year or more. They all pay interest each month. For the loans that are less than 1 month you will get both principal and interest paid together.
The only thing that can differ is that some of the longer loans will pay interest each month but the principal at the end of the loan period. This is usually only for real estate and business loans on Peerberry.
You can easily find the repayment schedules for all loans listed when browsing the available loans on the marketplace. This incl who the borrower is and other information around the loan.
Interest rates to expect at Peerberry?
On Peerberry’s platform you will be able to invest in loans with interest rates between 10-16% as of today. Average interest rate is at around 13% now in 2020.
Loans that are late or overdue will give you the same interest up to the date it’s paid or bought back from the Loan Originator if late more than 60 days.
All loans are backed by a buyback guarantee as an extra layer of protection from the loan originators and the companies behind them. We will get back to this in the Buyback guarantee section further down in this Peerberry review.
Who can invest on Peerberry and what countries are you lending the money to?
- Who can invest on Peerberry? Everyone that is over 18 years old and has a bank account in the EU is eligible to create an account. You can invest as a private person or a company as long as you are the owner of it.
- What countries are the borrowers from that you lend out the money to? There are 3 main credit institutes that are operating on Peerberry. These Credit institutes have many subsidiaries under them so there are a few countries that you can lend to. These are: Czech Republic, Lithuania, Poland, Belarus, Kazakhstan, Moldova, Ukraine and Russia.
Buyback guarantee on Peerberry?
Peerberry only has loans that are backed by the loan originators buyback guarantee. They don’t allow loans without this on the platform as of now. This makes things easier then other platforms that have a mix where you have to filter out those without the guarantee in my opinion.
The buyback guarantee for every loan originator on Peerberry is set to kick in after 60 days. This means that if the borrower is late for more than that, they will buy it back so you get the principal and accrued interest for that time back.
Since most loan originators on Peerberry are subsidiaries of bigger credit institutes like Aventus group and Gofingo most of the loans also have a Group guarantee. This means that if one of the smaller loan originators would end up in trouble and can’t pay for the Buyback Guarantee, the parent company or one of the others will step in to fulfill the obligations. Like always with buyback guarantee, it’s only as good as the companies behind it. That’s why a group guarantee usually is better than the normal buyback you can see on other platforms.
Auto invest on Peerberry
Yes they do have auto invest on Peerberry. It’s easy to set up and has all the features you need to get it to invest for you. Just go to the Invest section on the site where you find the loans. Click Auto invest and create a new auto invest portfolio. Then you will get the screen and options you see below in the picture:
Auto invest settings:
As you see from the printscreen above it’s very straightforward to choose the settings. Here they are explained in short:
1. Portfolio name: Pick a name for it say “peerberry auto”
2. Portfolio size: Amount you want to limit the portfolio to.
3. Maximum investment in one loan: Pick the amount you want per loan (minimum €10).
4. Interest rate %: Pick the interest range from and to that you want to invest in. (I would say to atleast pick from 11% and up now when they have so many loans on the site)
5. Remaining loan term: Pick loan term from and to, you can choose if it’s set to Days or Months in Type.
6. Remaining principal amount: Choose how much of the principal that is left in the loans to pick from.
7. Minimum funds in account: This is the amount you like to have left in the account and don’t invest.
8: Loan status: Pick from ALL or only one of Current and Late loans.
9. Country: Here you pick which countries you want to invest in, you can pick one, two or all of them.
Then in the last two settings, you have the boxes for Buyback guarantee and Do you want to Reinvest to slide ON or OFF. I don’t know why they have an option for the Buyback guarantee at ON/OFF since no loans are without it today. Maybe they have plans to add other loans in the future?
Now you just check off the box I have read and agreed with User agreement. And either Save and activate or just Save it if you want it to start at another time.
Is there a secondary market? – Peerberry review
There is no secondary market as for now on Peerberry. Since it’s a P2P platform with a huge range of short term loans there should be no need for that right now. They have said that a secondary market will be provided in the future though, but when?
So until they get a secondary market just invest money you can be without for the period of the loans you pick. Stick to short term loans with less than 1 month periods to get the fastest liquidity possible if that is what you are going for.
Open an account at Peerberry
It’s very easy to open an account at peerberry. Just go to the site and click login , pick create a new account. Fill in a few things to start with, Email, phone number and password two times. Check off the policy boxes. Then Create account, this is the first step.
Then the second step you get to fill in more information: Name, Passport number, date of birth and address.
Now you are active and can make a transfer and start to invest in the loans on Peerberry.
You will have to send in a copy of your ID when you are going to make a withdrawal as a last verification on KYC and AML laws in EU.
Deposit to Peerberry
It’s very straightforward for deposits on Peerberry. Just do a bank transfer (SEPA payment) which is normal between banks in the EU. You can only send EURO to the platform. They only operate with that and the same for the loans, which all is in EURO currency. The transfers of funds to Peerberry take 1-2 bankdays at most.
There are no fees for deposits.
Withdrawal from Peerberry
Same goes for withdrawals on Peerberry. You can withdraw all funds available that are not active in investments at any time. You will have to send in an ID like Passport to follow AML regulations. Once you have made a deposit, you can withdraw to the same account without any problem.
If you want to withdraw to another account of yours, you just need to make a small deposit from the new account to get it activ for withdrawals. And like deposits, only EURO is sent from the platform.
There are no fees for withdrawals.
Peerberry Loyalty program
Yes, Peerberry offers a loyalty program for investors for extra return if you invest over a longer time and at certain amounts. This gives you from 0.5% to 1% extra interest when you have met the requirements. It’s a 3 step program that everyone can join as long as you invest enough money. Basic line to be able to get into the loyalty program is that your account has been active for 90 days and you invest at least €10 000 or more. The categories are: Silver, Gold and Platinum.
- Silver: If you have a minimum €10 000 invested, you will get 0.5% extra on future investments.
- Gold: If you have a minimum €25 000 invested, you will get 0.75% extra on future investments.
- Platinum: If you have a minimum €40 000 invested, you will get 1% extra on future investments.
The loyalty program is calculated at the end of each month and counts from the month after. Example: If you had €8000 invested at the start of June, you invest €2000 more within the same month before it’s over. Now you have €10 000 and they will activate loyalty program step Silver with 0.5% extra return for July as long as you have that amount or more going forward.
Same goes for if you had Silver and then withdrew capital so you have less than €10 000 invested. The next month you will then be downgraded from the loyalty program.
The support at Peerberry works as it should. They can be reached over email and phone if needed. You can also chat with them at regular business hours on the site if you prefer that. Emails usually get responded to around 1-2 working days. Both Phone and Chat support are between 08:00-17:00 Mon-Fri. They also have a Help section on the site which you can find here.
If you are looking for alternatives or competitors for Peerberry there are many to pick from. Here are some of the bigger ones out there to choose from today. Mintos, avg 12% interest. RoboCash, avg 12% interest. NeoFinance, avg 17% interest. FastInvest, avg 16% interest. Lenndy, avg 12% interest.
For more P2P platforms, Look at my P2P comparison page here.
Peerberry and income tax?
Like most of the P2P platforms they don’t send any information about your investment to authorities or deduct tax for you. This you will have to do yourself when investing in P2P loans.
A good thing though is that they have a page where you have easy access to statements regarding your portfolio. Here you can see weekly and monthly statements, customised dates are also available.
They have a separate report that can be generated for tax statements that includes everything needed so you don’t have to calculate it on your own.
Loan Originators on Peerberry
Like mentioned in the beginning of this Peerberry review there are 21 Loan originators on the platform as of 2020. Most of them are subsidiaries connected to the two bigger companies Aventus Group and GoFingo. And of course the last loan originator Lithome in Lithuania that handles Real Estate projects.
Here below you have a list of active loan originators on Peerberry today and who they are connected to.
My opinion about Peerberry
If you have read through this Peerberry review and come this far you might want to know my take on the platform. I would say that it’s a good alternative in a P2P portfolio. The platform is easy to manage, great amount of loans to pick from and decent interest rates on the invested capital. That they focus on short term loans is making them more attractable for many investors that don’t want to be invested for years at the time.
They offer Group guarantee on most of the loans which is a good extra security. I mean Aventus Group that issues 70-80% of the loans there had a profit of over €12 000 000 in 2019. So they should be able to cover any problems if one of their subsidiaries gets in trouble in the future.
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.
This was it for this Peerberry review. Hope that it was helpful and gave you some insight into how things work at this platform. I will update this review with new information and features as time goes.
Leave a comment or send me an email if you have any questions. Also if you just want to discuss P2P lending and everything around Peerberry feel free to contact me.