Grupeer Review 2020

There are many P2P platforms in Europe to choose from. Between those platforms  there are clear differences with regards to the risk profile, protection, track record and ease of use. In this Grupeer review we will describe the key characteristics and pros & cons of the Grupeer P2P platform. 

0 / 5
Overall score
Risk/Reward
5/5

Grupeer offers one of the highest interest rates for loans with buyback funds.

Easiness of use
5/5

The Grupeer site is simple but effective. It’s very easy to navigate the available loans and view details about each investment. 

Protection
4/5

All loans are protected by buyback. This is in line with some other platforms, but Grupeer does also guarantee buyback in case of the loan originator’s bankruptcy.

Return
4/5

Grupeer offers loans against above average interest rates (historical average returns above 13%).

WE LIKE

  • Good amount of loans available
  • Simple website, easy to get started
  • Buyback guarantees on all loans
  • Useable auto-invest function
  • Diversification in loan types and countries

WE DON'T LIKE

  • Young platform with limited track record
  • No secondary market (yet)
  • Not regulated

SUMMARY

Grupeer offers returns between 10%-14% combined with buyback guarantee. They provide a diverse selection of loans in terms of geography and loan types, making it a recommended platform and a great way to diversify your investments into more business and real-estate backed loans.

HISTORICAL AVG. RETURN

13%

Loan Types

CONSUMER LOANS, BUSINESS LOANS

YEAR LAUNCHED

2016

TOTAL INVESTED

€ 55m

TRUSTPILOT RATING

3.8/5

BUYBACK

YES

SEC. MARKET

NO (EXPECTED 2020)

AUTO-INVEST

YES

Grupeer Review

Grupeer is a European P2P lending platform that focuses on business loans and real estate development projects. They also have some other loan types on their platform including mortgage loans, car loans, and personal loans.

What is Grupeer?

Officially based in Ireland, this European platform offers loans in Euro currency, originating from a wide variety of European countries, which allows for a diversified portfolio.

Grupeer works in a way similar to Mintos where it does not originate most loans itself, but uses loan originators (Grupeer calls them “Deal Partners”) to provide the loans. This means that Grupeer normally has a good amount of loans available.

Currently loans are available from Belarus, Estonia, Germany, Latvia, Russia, and Norway, and the Grupeer team is working on expanding into more countries.

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How to get started with Grupeer?

It is possible for both individuals and companies to open an account on Grupeer’s platform.

Opening an account is relatively easy. It consists of the usual ID & anti money-laundering checks you will find on most P2P platforms. You’ll also need a Euro currency bank account.

To create a user as an individual, you must be a least 18 years old, a resident of the European Economic Area / Switzerland and have a bank account in that region.

Is Grupeer safe to use?

To review how safe Grupeer is to invest in, we consider 3 main areas in this Grupeer review:

Grupeer has proven over the last 3 years to be a reliable and secure platform. However,  since the company has only existed since October 2016, there is no particularly long track record yet.

Just like any other lending platform, there are always risks involved with P2P lending on Grupeer. Your borrowers could default, the economy could enter a crisis, or there could be legal issues with a project that delay it or stop it altogether.

When comparing Grupeer with other P2P platforms, the platform has appropriate measures in place to limit the risk. There is a rating system for assessing the ‘deal partners’ that originate the loans. Furthermore, all loans are protected by buyback, and Grupeer guarantees the buyback even in case of deal partners’ bankruptcy.

There is a large variety in loan originators, or deal partners as Gupeer calls them, ranging from small originators with limited track record to large, profitable companies with an excellent track record.

All deal partners working with Grupeer have been through a rigorous approval process, and only about 25% of applicants are accepted

It is wise to select the deal partners carefully. The Grupeer rating that was introduced in October 2019 is useful in finding and selecting the best deal partners for you.

Grupeer makes an effort to secure their investors, but your investment strategy is arguably more important to limit the risks and build in protection. You can consider the following components in your investment strategy:

  • Only invest in loans with buyback guarantee
  • Select multiple deal partners
  • Diversify between multiple loan types
  • Diversify between multiple loans
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