14-15% for short term secured loans is great
There are more and more originators offering large loans
Can we please see our XIRR ?
Standard buyback terms
Simple but efficient !
Who can invest
Persons that have reached the age of 18 years and are residents of the countries of the European Economic Area or Switzerland and have an account with a licensed credit institution of one of these countries.
The persons that have a bank account in another country need to receive an additional confirmation from the Platform that we are ready to accept a payment from the jurisdiction they offer. (Grupeer FAQ)
English, Русский, Deutsch, Français, Español
Grupeer is different from most other P2P sites I invested in, as it only focuses on business loans and development projects. It’s located in Latvia.
Account registration and funding
Creating an account with Grupeer is extremely quick and easy; the amount of required informations is very limited.
Secured loans : Grupeer’s strong selling point
Grupeer provides only secured loans in Euro. Initially the loans supply was very scarce, and my original review showed a screenshot of the five available loans as I wrote it ! However, things have changed for the best and there are now many loans to invest into. Most of them offer annual rates of 14% for a duration of less than one year. The highest-yielding loans are Russian loans offering a whooping 15% for a 6+ months duration; they’re sometimes sold out but are added back regularly, so don’t hesitate to check Grupeer’s website often.
There are many originators available. This allows you to diversify your portfolio by spreading your investments among several originators.
Clicking on a issuer’s name will give you details about the loan, especially the buyback conditions. Note that like several competitors, Grupeer uses a mechanism called “skin in the game”, which means that the originator has to keep a part of the loan (5% at Grupeer). If you look at a project’s details, you will notice that if for example the loan amount is €200 000, the initial available amount is only €190 000 – 95% of the loan amount -. The originator itself has invested the remaining 5%. This mechanism encourages the originators to provide quality loans, as they will be directly impacted if the borrower defaults !
You can also invest in development projects, which seem more or less equivalent in term of returns. As of July 2018, there is just one project available, but it offers a great 15% returns for a duration under one year.
Grupeer’s development projects are described in great details. With other platforms, I would tend to favor P2P loans over development projects, as the latter are easier to understand and come with a buyback guarantee. However, one major difference between Grupeer and its competitors who also offer real-estate investments is that Grupeer’s development projects come with a buyback guarantee. As a result, I don’t see any reason to favor P2P loans over these, and I invest indiscriminately between the two types of loans – especially now that the development loans yield 15% ! –
Grupeer regularly runs cash-back campaigns, meaning they will credit your account with a small percent of your new investments in specified loans. Usually, they give back 1% of the amount invested in selected 14% loans, bumping their interest rate to 15% ! The loans featuring this offer are highlighted by a blue € icon (see for example Primo Invest SIA in the loans list screenshot above).
Buyback usually happens when loans are 60 days late or more. However, it may happen earlier for some loans; for example, one of the loans issued by Russian originator Finsputnik Platforma SIA will trigger the buyback after only 15 days ! The investor will be compensated for the outstanding principal and accrued interest that didn’t get reimbursed. Until now, none of my loans had defaulted. Note that buyback guarantee also covers the current development projects.
As mentioned before, you can find the buyback information on the loan’s detailed description.
There’s currently no secondary market; it’s supposed to arrive soon but the release date keeps on slipping so don’t hold your breath !
It’s extremely easy to invest manually via Grupeer; that’s actually how I manage my portfolio there. From the loans list, just click “Invest”, select the amount and validate. The loan will be added to your basket at the top of the screen. Once you’ve selected all loans to invest in, click on the basket icon and confirm your investments.
Since May 2018, Grupeer added an auto-investing feature to their website. While the settings are rather basic, they will probably work well enough for most investors. I mostly regret the lack of an auto-diversification feature, like the one Mintos offers. Also, ironically, the FAQ mentions the secondary market, which doesn’t exist yet.
Grupeer’s website is rather basic but works well. I noticed a small glitch when investing from my mobile phone; it’s difficult to confirm investments. There’s supposed to be a blue icon at the top of the screen, but it doesn’t appear on my phone. I have to click on the “Grupeer” logo to switch to a page where it’s visible !
The website is available into many languages : English, Russian, German, French and Spanish; however, the translation’s quality varies greatly from one language to another. While the English version is spotless, the French translation is sometimes weird, and several parts didn’t get translated.
The lack of an XIRR computation is annoying. Apart from this negative aspect, again thanks to the small amount of loans, there’s no need for much reporting. However, what I would love to see is a breakdown of my investments by originator. This would allow investors to check if their portfolio is diversified enough.
The website unfortunately doesn’t provide us with any XIRR computation. I computed it manually, and it resulted in a nice value of 14.67% at the end of June 2018 ! I re-invested in loans offering the 1% cashback, which gave my returns an instant boost.
Most of my loans have an interest rate of 14% or 15%, and all my funds are permanently invested; as such, I expect my XIRR to stay above 14%. Needless to say that this is an excellent result !
Conclusion : Grupeer is my favorite P2P lending platform for secured loans
I really like Grupeer; it’s a very low-maintenance P2P lending site, where I have around one or two loans expiring each month, and returns are great. It’s probably the platform where I’ll invest my next available funds.
(last update : July 19th, 2018)