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Grupeer review: how I get a 13.2% return

What is grupeer?

Edit at 2020/04/03: Grupeer has stopped processing withdrawals and at the very least we can say they are having Financial problems. I highly recommend not to invest in Grupeer at the time being

Grupeer is a Fintech company where you can invest in loans. This system is called peer to peer lending. Basically Grupeer is a mediator between Credit companies who provide credit to individuals. As an investor you invest in those loans and get a certain return.

The credit company provides you with a lower interest rate then they are providing to the individuals. In exchange they provide insurance under the name of buy back guarantee. That means if a loan defaults they will buy back the loan.

Grupeer offers buy back guarantee on most loans, with some exceptions. When you invest its quite clear if a loan has a buy back guarantee or not.

Because you can invest already from a small amount (10 EUR), that means that if you invest 500 EUR it is spread over 50 loans and different creditors.

Grupeer also has a second way to invest, but that is discussed more bellow.

Interest rates are, according to Grupeer 13.19. For me personally its a little bit lower, but I will come back to that later.

Registration

On the site just click the “Register” button to go trough the wizard for Registration.

Fill in the data, and then click Register. You will then need to activate your account trough your mail.

Once your email is confirmed you will also need to confirm your identity.

If you hover over your name you can you to the identity page. You will need to fill this in, and provide a copy of your ID or passport for identification. Without it you cannot start investing.

Overview

The most important part is of course the loans and the ROI, however a nice overview is always good to see.

(The income bellow is over a period of 2 months)

www.grupeer.com

What I am missing here is the average interest rate earned so far and the expected interest rate for my current portfolio. I don’t know if they can calculate these numbers, but since they are showing it on the main page I am assuming they can.

The good news is they do show the total income, so I am using that to calculate it myself for now. Based on the above I get give or take about 13.2% per month at Grupeer, although I feel I have not been investing long enough to know this for sure. Follow my portfolio updates to find out how much profit

Depositing money

On the deposit page you will get to read on how to add money to your account.

Basically you do a normal bank transfer and add Grupeer will tell you (on this page) what ID you need to pass as payment details (your own ID of course).

Of the 9 lending platforms I currently invest in Grupeer does take the longest to get the money onto the account. Although still it only takes a few working days. I remember especially the first time I deposited it felt a bit to long. Now I am more patient as I know it will come.

Withdrawing money

Withdrawing cash is quite easy. You also have just your own bank account where you can withdraw money to. Its both to prevent money laundering but also in case someone gets access to your account.

Investing

Loan deals

In Grupeer there is different ways and places where you can invest. The first is to invest manually in loans. If you hover over invest and click “loan deals” you can go to the menu

What we see with Grupeer is that there is a lot of IR of 12-13%. This is quite high for a lending platform (although I heard it used to be higher). The green image behind the name means the loan comes with a buy back guarantee. There is a lot of loans with buy back guarantee. I would not recommend to get any loan that doesn’t have this.

There is an option to invest automatically in these loans. You can do this by using the auto invest option. I will get back to that later.

Development projects

The second method to invest is development projects. While loans are more for individuals here you can invest in businesses and companies. Usually these are real estate projects. As the interest rates are not much higher and you invest here manually I decided not to invest in these.

I do invest in projects but just not on this site.

Secondary market

Grupeer does not have a secondary market yet. While it is planned at some point, it means that for now there is no fast way to get your money out. If that is important to you then you might not want to invest in loans that run for to long.

Auto invest

Grupeer does have an auto invest option, and that is quite important as we want to generate passive income.

My autoinvest settings

Loan originators. I only selected 25/36. I deselected all loan originators who have a C and D rating. More about how you can find the rating bellow (as Grupeer did not made it so easy).

I loan all loan types and to all countries.

As interest rate I put 12,5% and I have not changed it in 2 months. I always seem to have some loans there, and not much cash drag.

The term I put on 16 months. That means it would take me about 16 months to get all of my money out. An acceptable term for me.

Auto invest limit was set to 6500, I just increase this as my money in Grupeer is increasing.

Max amount per loan, currently set to 20. The lower the better, but if you put it to low you need to spread over to many loans and if not enough loans are available you could get cash drag.

Repayment type I unchecked “baloon” as I wanted to have loans that give me a monthly income.

Last but not least I only invest in loans with buyback guarantee.

Creditors rating

It’s not so easy to find where Grupeer keeps its rating. I had to log out, click on Blog (oddly I have no access to this when I am logged in), and then search on rating. On a blog post of the 31st of October I found the ratings that Grupeers creditors currently have.

Its only a feature since the 31st of October. Once I saw the post I unselected the C and D creditors, of which I did notice I had purchased some loans, that have paid back so far.

What is interesting is that creditors with a good rating do not necessarily have a bad interest rate.

Grupeer income statement and balance sheet

Apart from the Creditors of course we also want to know if Grupeer itself is profitable. While it seems that Grupeer is still taking a small loss (not uncommon for a new company), it does have a very healthy balance sheet. And with an income of 580.000 / year having a 46.000 loss does not so severe on a healthy balance sheet. Even if something happened to Grupeer your contract is with the Creditors and not with Grupeer. Grupeer is just the mediator. But you never know and that’s why you should always spread your investments.

Grupeer did not have to publicize this so it does show confidence that they did.

(The numbers bellow are from tax year 2018)

Profit & Loss
Balance sheet

Referral program

If you use this link to register then I will get a referral bonus. While its greatly appreciated if you decide to register using my link, this is not the reason I recommend this platform. As you can see I invested in this myself and am investing more every month. That means that I fully believe in Grupeer.

Conclussion

I really like Grupeer. I transfer at the time of writing 400 EUR monthly to Grupeer that is being automatically invested. Its a good way of generating a passive income while spreading your risk. I would recommend to make Grupeer part of your investment strategy if you want to generate a passive income.

Improvements I would still like to see is two-factor authentication, a secondary market and more statistics on the overview page.

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