Envestio Review and Key Facts:
- Typical loan durations from 6 to 12 months
- Invest into real estate and commercial projects
- Interest rates from 12% to 22%
- The investment projects are carefully selected and come with a partial buyback guarantee
- So far 0% of late or defaulted projects
updated Aug 5 2019
My experience with Envestio
Envestio is one of the most recent crowdinvesting marketplaces that I started using and I have a very positive feeling about it. The founders of Envestio have a pretty good insight into the fintech and crowdinvesting world and they openly and frequently discuss topics like safe investing and the future of the fintech and p2p market on their blog. They also seem to have a pretty solid process for the acquisition of investment projects and so far managed to have zero projects that were running late or became default.
The company was founded in 2014 as a private investment fund and opened up for crowdinvesting in December 2017. Since then, dozens of investment projects have been funded with typical project sizes ranging from 50.000 Euros to 500.000 Euros. The average interest rate paid out to the investors currently stands at impressive 19%.
Getting started on Envestio
Becoming an investor is just as straightforward as on any of the other marketplaces. You register your account with email and password and validate it by uploading photos of your ID card or passport along with an up to date proof of residency (like a recent bank statement or utilities bill). The validation is done in the “Documents” section in your investor’s account.
Funds are added to your investor’s account via SEPA bank transfer. Withdrawals work the same way: Envestio will transfer the requested amount to the bank account from which the deposit had been made. The minimum for a deposit is 100 Euros but there is no minimum amount for the investment into a project. You can invest as little as 1 Euro per loan.
Deposits and withdrawals are managed in the “My accounts” section where you’ll also see a list of all the operations on your account.
How to invest on Envestio
Let’s get to the core of this Envestio review. Due to the large project sizes you won’t be able to invest into hundreds or thousands of loans like on crowdlending platforms. Over the past year, Envestio opened between four and ten projects per month for investment so that’s the amount of diversification that you can expect. Given the very good performance of Envestio so far, I’m not concerned about this.
Investments are either done manually (Envestio will inform investors of new projects by email) or through an Auto Invest. The Auto Invest function is a rather new feature and was brought online in July 2019. You can read more about it here.
I recommend setting up the Auto Invest since manual investments will most likely not be possible anymore. The Auto Invest will just be faster than you and by the time you log into your Envestio account the project will be fully funded. See also here for more info about manual investments.
Interest is paid on a monthly basis and the loan principal is paid back in full at the end of the loan term. This creates some cash drag (meaning that the principal amount only becomes available for re-investment at once and not gradually through partial payback each month) but due to the high interest rates at Envestio this is nothing to worry about.
Keeping track of your investments
The Dashboard gives a good overview of your current account balance and the repayment schedule for all of your investments. All future payments are listed here while past payments are listed under the My accounts tab.
Envestio offers you the option to sell your loan share back to Envestio at any moment for a penalty fee which is outline in the project description (usually 5% of your principal). The interest that you have earned until this point remains in your possession.
Envestio investor protection
Almost all loans on Envestio are secured loans for which the borrower provides additional legal insurances like mortgages, collateral (e.g. goods, machines, real estate) and personal insurances. In case that a borrower is not able to pay back the principal loan amount at the end of a project, Envestio will immediately pay back 80% of the principal to the investors. For the remaining 20% you’ll have two options. Either, you can get another 10% payback immediately (90% payback in total) or you wait until the loan recovery process starts and have the chance to get 100% of your investment repaid.
You can read more about Envestio’s investor protection here: https://blog.envestio.com/how-safe-investments-in-envestio-are/
Get started and earn a bonus
If you’d like to start investing on Envestio you can open an account through this link and you’ll receive 5 Euros starting capital and a 0.5% cashback on all funds that you invested in the first 270 days after opening the account (calculated and paid out on a monthly basis).