Crowdpear Review
Get a 0.5% Bonus
Highlights
- Earn up to 11.19% APY
- Powered by Peerberry
- Regulated Platform
- Tested Platform
Statistics
Year Founded
2023
Investors earnings
€ 71.907
Number of Investors
4.903
Loss of Investors Money
€ 0
Interest
€ 8%-13%
Average portfolio Size
€1.343
loan Period in Months
12-18
Latest Financial Report
Not available
Table of Contents
Crowdpear Review Summary
Crowdpear is a compliant crowdlending platform based in Lithuania, providing investment opportunities in high-performing loans backed by mortgages. This crowdfunding platform offers enhanced security measures and promising returns of over 10% annually.
What is Crowdpear?
Crowdpear, a regulated Lithuanian crowdfunding platform, facilitates investments in secured business loans offering a lucrative 10.5% interest rate. With a minimum investment of only €100 per loan, interest accrual occurs quarterly and is credited to your account. Curious if Crowdpear aligns with your investment goals? Explore further in our detailed Crowdpear review.
PROS
- Regulated Crowdfunding platform
- High interest rates
- No Cash Drag
- Modern P2P lending platform
- No fees
- Option to invest as a company
CONS
- Low availability of loans
- limited difersification
Our Opinion Of Crowdpear
Crowdpear, a recently established regulated crowdfunding platform, presents competitive yields and is managed by a seasoned and reliable team.
The platform’s performance thus far has been commendable, positioning Crowdpear as a potential strong contender among platforms like EstateGuru within the crowdfunding sphere.
The real estate loans available on Crowdpear, all secured by primary mortgages, provide added security for investors.
Though there is room for enhancement, Crowdpear stands out as a viable alternative for investors facing cash drag on other platforms, offering a better avenue to maintain invested funds.
Loan availability has shown consistent growth in recent months on Crowdpear, allowing investors to deploy more capital without encountering cash drag. We’ve had a positive experience since our early 2013 investments on Crowdpear, receiving timely interest payments without any delays.
User Requirements
- Be over 18 years old
- Pass the KYC
- Verify your identity
- Verify your bank account (IBAN)
Peerberry Loyalty Bonus
PeerBerry offers three tiers of loyalty bonuses:
- Silver: For portfolios surpassing €10,000, investors receive a 0.5% bonus.
- Gold: Portfolios exceeding €25,000 qualify for a 0.75% bonus.
- Platinum: Investors with portfolios over €40,000 are eligible for a 1% bonus.
To avail of these rewards, simply sign up for PeerBerry and commence your investment journey. The platform will apply the PeerBerry bonus solely to your active investments when your portfolio size meets the specified bonus criteria.
Crowdpear Bonus
Sign up with our link on Crowdpear and invest to receive a 0.5% bonus of your invested capital within 90 days after your registration.
In addition to your investment bonus, you will receive additional rewards if your portfolio reaches €10,000 (+0.5%); €25,000 (+0.75%); and €40,000 (+1%).
Logically, you have to invest money to get a higher interest rate.
The loyalty bonus won’t be added to your account if your funds aren’t invested.
Please be informed that you can become part of the loyalty program only after registering on Crowdpear for at least 90 days.
Crowdpear Requirements
- be at least 18 years old
- reside in the EU or EEA
- pass the AML and KYC questionnaire (multiple choice)
- verify your identity
- declare your tax residency
The entire sign-up process can be done within five minutes. The verification happens through your smartphone, so ensure your phone is closed when verifying your identity.
Crowdpear supports registrations of natural persons as well as companies.
If you are risk-cautious, we highly recommend activating the 2FA to protect your account.
Risk & Return
Investing in loans carries inherent risks, even on platforms like Crowdpear. However, Crowdpear allows investors to participate in Lithuanian real estate loans secured by a primary mortgage.
An interesting aspect exclusive to Crowdpear is that investors start earning interest immediately upon investing in a loan, unlike most other crowdfunding platforms where interest accrual begins only after the loan is fully funded. This unique feature boosts the potential return for investors on the platform.
The current Loan-to-Value (LTV) ratio of listed loans on Crowdpear stands at approximately 60%, with potential to rise to 80% in subsequent stages.
Stage Loans
Investing in multi-stage loans from a single borrower can elevate investment risk since such projects are commonly funded in sequential phases.
In this situation, diversification, a strategy often used to mitigate risk by spreading investments across various assets or borrowers, may not apply. If difficulties arise for the borrower in repaying one stage of the loan, it might indicate potential challenges with subsequent stages. Consequently, seasoned investors typically steer clear of multi-stage loans to minimize the risk associated with the borrower’s repayment capability.
Usability
Liquidity
Crowdpear’s liquidity is constrained due to the 12-month loan term for all listed loans. However, the platform recently introduced a secondary market, enabling investors to trade their investments before loan repayment.
Selling an investment is a straightforward process: head to “My Investments” in the menu, select the desired investment, click the cart icon, confirm your listing, and adhere to the 14-day validity period. There’s a 2% seller fee, while buyers aren’t charged any fees.
Investors can list their investments at up to a 25% discount, but it’s essential to note that only complete investments in a single loan can be sold. Larger investments in a single loan might face challenges finding buyers.
Crowdpear’s secondary market offers increased liquidity by allowing investors to trade their investments before the loan term ends.
Support
Crowdpear’s support is managed by the same team responsible for PeerBerry, known for their exceptional customer service. If you haven’t located the information you need in Crowdpear’s FAQ section, you can reach out to Crowdpear via email at info@crowdpear.com. Typically, responses are prompt, often within a few minutes during regular business hours.
Crowdpear alternatives
FaQ About Crowdpear
Esketit is a reputable peer-to-peer lending platform that showcases loans from well-established loan originators across multiple countries. We have personally visited Esketit’s headquarters and engaged in multiple discussions with the management to verify the platform’s legitimacy.
Investors utilizing Esketit will continue to receive accrued interest for delayed loans until the loan is fully repaid or until the buyback guarantee is triggered. Even in cases where loans face delays, investors will still earn interest on their investments
The T&C’s apply for the Irish company. The Latvian company is in the first line and most probably, that’s what creates the confusion. The Latvian company does some back-office work for the Irish company. The company that serves the platform is registered in Ireland.
There are multiple avenues to engage in business within the market. One can opt to operate as a commercial lender under the regulation of the Companies Control Department, establish as a microfinance company holding a license issued by the Central Bank of Jordan, or function as a sharia-compliant lender, adhering to the principles outlined in Islamic law.
Capitacritique.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Capitacritique does not include information about every financial or credit product or service.