Grupeer review

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.

Secured loans : Grupeer’s strong selling point

Grupeer provides only secured loans. 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 3 months duration; they’re currently 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 sometimes runs a cash-back campaign, meaning they will credit your account with a small percent of your new investments in specified loans. At the end of 2017, they gave back 1% of the amount invested in many 14% loans, bumping their interest rate to 15% ! The loans impacted by this offer are highlighted by a blue € icon.

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 !

Development projects

You can also invest in development projects, which seem more or less equivalent in term of returns. As of April 2018, there are two such projects offering 14% returns for a duration under one year. These projects are described in great details; they’re however different in nature from the loans, and I tend to favor the latter as they’re easier to understand.

Grupeer's Promenada development project

Buyback

Buyback happens when loans are 60 days late or more. 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 current development projects are also covered by buyback guarantee.

Website ergonomics

Grupeer’s website is rather basic but works well. There’s no auto-invest feature, but it’s not really necessary given the small amount of available loans.

One minor inconvenience : should you ever want to filter the list of available loans (for example to check past loans), you’ll notice that the display is painfully slow, but that’s not a feature you’ll often use.

Also, if you’re investing from your mobile phone, it may be hard for you to confirm your investments. There’s supposed to be a blue icon at the top of the screen, but it doesn’t appear on my phone. I had to click on the “Grupeer” logo to switch to a page where it’s visible !

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.

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 14.63% at the end of January 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% and all my funds are permanently invested, so I’ll expect Grupeer’s results to be better than those of Mintos.

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 loan expiring each month, and returns are currently great. It’s probably the platform where I’ll invest my next available funds.

Interest rate 14-15% for short term secured loans is great
Loans availability Few loans to choose from, but with large amounts
Buyback Standard buyback terms
Website ergonomics Simple but efficient !
ReportingCan we please see our XIRR ?
Global rating My favorite website for secured loans

(last update : April 19th, 2018)

 

4 thoughts on “Grupeer review

  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.

    1. 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.

      1. 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.

        1. 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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