Want your money to start working for you? Using a lending platform like the Grupeer P2P lending platform may be right for you. But is this a good option for investors? Should you choose a different lending platform? Find out in our Grupeer review now.
What Is Grupeer? Understanding The Basics Of This P2P Lending Platform
Grupeer is a P2P lending platform, which allows individual retail investors to connect with businesses that are seeking funding. Grupeer was first founded in 2016. It’s based in Latvia, and it serves investors in the EEA (European Economic Area).
In total, the company now has more than 13,843 investors from a total of 38 different countries, and it has issued more than €52,497,424 in loans to its borrowers. This makes it one of the larger P2P lending platforms on the market.
Primarily, Grupeer focuses on funding construction projects such as commercial retail and residential apartments. However, it also has some unique opportunities for investors. This includes the “Stability Fund,” which gives guaranteed 4-8% interest by investing in a square meter of a real estate property. We’ll discuss this in more detail later in our review.
Return on investment at Grupeer: Great, stable returns
Grupeer is a great P2P lending platform for those who are looking for steady, reliable returns. The typical interest rate range of investments hovers between 10%-16%. Naturally, lower-risk projects will carry a lower interest rate. Higher-rate loans are riskier but promise better rewards.
The company claims to have an average annual return of about 13.45%. Most investors we know have slightly overperformed this average. This is likely because they invested in a few more higher-interest projects. This is because they are looking to use Grupeer to build a slightly more high-risk, high-reward portfolio to augment other investments.
Currently, there are over 250 open loans on the Grupeer platform, with more being added every day as available loans continue to sell out. There are always plenty of opportunities to explore unique and interesting development projects.
Diversification of loans at Grupeer: Plenty to choose from
In our Grupeer review, we found that this company offers a tremendous diversity of loans. While most projects are in the real estate space, there are many different investment options. Grupeer works with more than 15 loan originators, including big names like Monify, Primo Invest, A24 Finance, and NordCard.
Mostly, the loans are business loans for commercial real estate, though some residential real estate projects are present. Loan durations seem to run from anywhere from 4 months to 12+ months.
EUR is the only currency accepted on the site, but loans are issued in a variety of countries including Latvia, Belarus, Estonia, Poland, Russia, and quite a few more. This provides investors with a wide variety of countries in which they can invest their money. In turn, this allows for a more balanced, diverse investment portfolio.
Grupeer investment features: Good, but not great
Grupeer has reasonably good features, but they’re nothing to write home about. It has an autoinvest feature, which is an excellent way to take a “hands-off” approach to investing. Using the Grupeer P2P lending platform, you can reinvest your gains in your preferred projects.
There is also a buyback guarantee available. This guarantee requires loan originators to buy back defaulted loans and pay investors both the interest and principal they are owed. However, this is only available on some loans. Loans covered by the buyback guarantee are usually lower in yield, compared to riskier loans, which makes sense.
There also is no secondary market, so there is no way to resell a loan that you don’t want. This means that, when using this P2P lending platform, you should be careful when picking out the projects in which you want to invest. However, Grupeer says it is working on adding a secondary market in the future.
The minimum investment on Grupeer is 10 EUR, which is low enough that just about anyone who wants to use this platform can do so. The only supported method for depositing and withdrawing money is a SEPA transfer.
One unique feature of Grupeer is its Stability Fund. This fund lets you invest piecemeal into pieces of already-built property. You can literally buy a few square meters of real estate property, and receive income based on the rent of the property. Typical yields are between 4-8% per year, making this a very safe and stable – though low-interest – investment.
User experience at Grupeer: Streamlined and efficient
We have no complaints when it comes to the Grupeer user interface. It’s very easy to navigate the available loans and view details about each investment. You can quickly determine which companies you want to lend to on this P2P lending platform.
There are even several filters you can use to find the right loan for your investment needs. You can sort by interest rate, country, loan type, loan originator and more.
Overall, the Grupeer user interface is completely usable, but it’s nothing to write home about. It looks a little bit generic. It would be nice to see Grupeer adopt a slightly more unique brand to differentiate itself from the competition.
Risks of the Grupeer P2P lending platform
Just like any other lending platform, there are always risks involved with P2P lending on Grupeer. Your borrowers could default, the economy could slide, or there could be legal issues with a project that delay it or stop it altogether.
If you invest only in loans that offer a Buyback Guarantee, you can reduce your risks when you use the Grupeer P2P lending platform. However, you may get lower overall returns.
If you are just starting in the world of P2P investing, though, Grupeer is a solid option. There is a large diversity of loans, and it’s easy to get started with just 10 EUR and start getting good returns.