Grupeer is a relatively new peer to peer lending platform in Europe with very good returns. Grupeer registered in October 2016, and the platform itself launched in February 2017. Therefore, 1 year later we decided to give it a try and invest a little bit of money at this peer to peer lending platform. Here we are with our review, listing the pro’s and the cons about the platform
Right now, Grupeer is offering business loans and mortgage loans with interest rates ranging 14% to 15%. Grupeer is a marketplace of loan offerings, which means there are other loan originators offering their loans on the marketplace, competing with each other.
Secure mortgage loans with collateral.
Buyback guarantee: When loans turn 60 days late, they will be purchased back by the loan originator. This minimizes the risk to the investor. There is however still exposure to lose capital if the loan originator happens to go bankrupt. To prevent this, diversification is key.
Interest rates of 15% above alternative peer to peer lending platforms average.
Employees of Grupeer can be looked up on LinkedIn.
No crazy attempts or heavy marketing to grow fast. Overall a very stable platform.
No late loans or defaults after investing for 1 year.
Mintos is a more mature platform, although with lower returns.
All loan originators seem fairly new. Most of them registered mid 2017.
Who secures the buyback guarantee?
The loan originator provides the buyback guarantee. If a loan turns late for more than 60 days, the creditor is legally bound to immediately buy back the outstanding principal and accrued interest of the claim. Buyback guarantee is part of the agreement between Grupeer and the loan originators.
What happens if Grupeer goes bankrupt?
In case if the company goes bankrupt, the investor can claim directly from the loan originator as the loan originator still has liabilities towards all investors that made investments to their projects. All claims are bound between the investor and the loan originator.
What happens if a loan originator goes bankrupt?
The investor will have direct claim rights towards borrower. In most cases a bankruptcy administrator will be appointed who will manage payments. The worst thing that could happen is that the creditor will not inform the borrower. In that case, the borrower will be informed later during the official bankruptcy procedure.
Most of the loan originators at Grupeer are recently founded and may be a risky investment. The vast majority of them is located in Latvia.
Loan originators Kviku and DoZarplati are also present on Mintos, they joined Grupeer shortly after Russia’s laws changed and an intermediary company was required for foreign investors.
This means that non-Russian investors technically cannot invest directly into loans from Russian origin. However, they’re brought under Finsputnik Platforma.