Grupeer review : high returns with little effort

Grupeer keeps getting better and better ! Their secured loans yielding 14% interest rate or more are extremely interesting. Their platform allows to have excellent returns while spending very little time managing your loans portfolio.

 

GLOBAL RATING

Loans duration

1 month - 1 year

Loans kind

Business
Real-estate

Minimal investment

€10

Buyback

Buyback guarantee available

Secondary market

NO secondary market available

Auto-invest

Auto-invest available

Pros

  • Excellent interests rates
  • Large loans volumes
  • Several originators available allow to diversify your portfolio
  • Even development projects are covered by the buyback guarantee
  • Frequent cash-back campaigns allow you to make an additional 1%

Cons

  • No secondary market

Interests rate

14-15% for short term secured loans is great

 

Loans liquidity

There are more and more originators offering large loans

 

Reporting

Can we please see our XIRR ?

 

Buyback guarantee

Standard buyback terms

 

Website ergonomics

Simple but efficient !

 

Currencies

Euro

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)

Funding methods

SEPA transfer
Transferwise

Languages

English, Русский, Deutsch, Français, Español

See also

Grupeer's overview

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.

Grupeer's registration screen
After confirming your e-mail, your account is immediately available.
 
It’s possible to fund your account either via SEPA transfer, or via Transferwise. SEPA transfer are handled very quickly; funds are usually available on my investment account two days after I initiate the transfer.

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.

Grupeer's available loans

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 !

Development projects

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.

One of Grupeer's development projects

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% ! –

Cash-back campaigns

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

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.

Secondary market

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 !

Manual investing

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.

Auto-investing

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 auto-invest configuration

Website ergonomics

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 !

Available lanquages

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.

Reporting

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.

Actual performance

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)

4 thoughts on “Grupeer review : high returns with little effort

  1. Hello,

    Do you have any updates after a while investing in it? Grupeer provides great return with buy-back (it is almost the same yield as some other platforms provides non-collateral loans). It is interesting if you see any risks in investing? To my opinion, there’s not much experience with loan originators bankruptcy and whether investors receive all invested amount. We are not able to check who are the final loan receivers so we need to trust in loan originators financial condition. What is more, have you seen any forums or/and investors chats where they shares its’ experience in investing in grupeer? Except this, p2p hero and welltrado articles , I have not seen any more discussions among usual investors. Buy-back is a very good stuff, however investors must not take it as 100 % guarantee (please check Mintos – Eurocent case). Good luck ! Will wait more post about grupeer platform which is comparable very profitable in EU market.

    • Hello,

      Grupeer is one of my favorite P2P platforms. The returns are very consistent, there’s no shortage of loans and the regular cash-back offers make it even more attractive. After a bit less than one year, my XIRR is consistently above 14%. The availability of several originators also helps mitigate the risk; diversification among several issuers is a must as buyback is indeed not an absolute guarantee. Note that I mostly focus on their loans yielding 14%, as I don’t totally trust the Russian originator. Which brings me to the next topic…

      I totally agree with your comment regarding the need to check the originator’s finance; however they’re seldom available, so we must rely on the platform to select trustworthy originators. Mintos implemented more severe screening after the Eurocent troubles, and other P2P platforms also did so. I honestly don’t believe that investors will get all their funds back in case an originator goes down. However it’s just part of the risk of investing; most P2P platforms have returns above 12% in a much more consistent way than, say, the stock market, so it’s normal to have some risk associated !

      Finally, back to Grupeer again, I also read very few reviews of this platform elsewhere, and I was curious about it. One P2P investor I contacted about it was concerned about the small amounts available; he prefers to invest in larger companies, which are supposedly more reliable.

      • Thanks Jerome for your insights! One more thing, do you trust in the platform itself? I mean just very few investors know about it and no active communication can be found – it makes a feeling that it is very new and risky. Did you have a chance to check their management reputation (maybe had a direct contact with them)?
        I invested approx. in 20 loans and will observe the situation before investing more.

        • I know that several other bloggers in the P2P lending area partially evaluate a platform’s trustworthiness by communicating with their management. However, I tend to dismiss such criteria. Indeed, nowadays it’s very easy to build websites that look extremely convincing while being actually very shady. Look at how many people invested in bogus ICOs after reading a well-crafted whitepaper ! While I agree that it’s a slightly different situation, this example incites me to disregard appearances and focus only on the returns that my small initial investment yields.

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