Kviku Finance platform overview.
If you are contemplating investing through the Kviku platform, we have prepared this review to assist you in determining whether Kviku is the suitable option for you. In this review, we delve into the offerings provided by Kviku, including the types of P2P loans you can finance, the available interest yields, and most importantly, the safety of your capital. By examining these aspects, we aim to provide you with valuable insights to support your decision-making process regarding Kviku as an investment platform.
What is Kviku?
Kviku Finance is a platform that offers investment opportunities in pre-funded unsecured consumer loans originated by loan originators within the Kviku Group. Although Kviku Finance itself is a relatively new platform established in 2020, it is backed by the well-established Kviku Group, which has been operating since 2013. This long track record in the industry provides investors with a sense of security, as all activities on the platform are supported by the parent company, Kviku Group.
Since its launch, Kviku has experienced rapid growth. Currently, the platform boasts over 3,000 investors who enjoy an average annual return of 12%. The loans available on Kviku originate from various countries including Spain, Poland, Russia, Philippines, and Kazakhstan. These loans are secured with a buyback option and a group guarantee, providing additional safeguards for investors.
How does Kviku work?
Kviku Finance acts as a bridge between private investors primarily from Europe and lending companies operating in Europe and Asia. The platform enables investors to invest in fractional portions of loans provided by these lending organizations. By investing in loans on the marketplace, Kviku customers contribute to increased liquidity for loan originators, allowing them to issue more loans and expand their lending operations.
The responsibility of assessing the creditworthiness of borrowers who apply for loans on the platform lies with the loan originators. Once a borrower is approved, the loan opportunity becomes available for investment through the Kviku P2P platform. If the loan meets your specified criteria, Kviku Finance will automatically invest your funds.
Once the borrower repays the loan you have financed, including the principal amount and accumulated interest, the funds will be automatically transferred to your Kviku Finance account. You have the option to reinvest the funds or make a withdrawal to your personal bank account.
Each loan comes with a predetermined payment schedule, and borrowers are obligated to make repayments according to this schedule. In the event that a borrower fails to meet their scheduled payments, the buy-back guarantee will be activated to mitigate the potential loss.
Type of investment available on Kviku
Kviku Finance provides investors with three distinct consumer products to consider for investment purposes:
- Virtual credit cards: this product offers credit lines of up to 1000 euros, with loan terms extending up to one year. Investors have the opportunity to invest in loans associated with virtual credit cards.
- Points of sale loans: with this offering, loans of up to 2000 euros are available, featuring loan terms ranging from two months to one year. Investors can allocate funds towards loans associated with points of sale financing.
- Credit line: The credit line product enables investors to invest in loans associated with credit lines of up to 3000 euros. The loan term for this product is six months.
These diverse consumer products cater to different borrowing needs and provide investors with a range of investment opportunities within Kviku Finance's platform.
Investing with Kviku Finance
Investing in Kviku Finance is a streamlined and automated process, requiring minimal effort on your part. Once you allocate your funds, the platform takes care of automatically investing your capital according to your predefined criteria. Getting started with Kviku is straightforward, allowing your money to begin generating interest on the platform without any hassle.
Both individuals and companies have the opportunity to invest through Kviku Finance. To begin, you need to be at least 18 years old and possess a bank account. Setting up your account involves completing a brief registration form and providing scanned copies of your identification documents. If you represent a legal entity, additional information such as business registration documents, details of beneficial owners, and other relevant information may be required based on the company's risk assessment.
Funding your Kviku Finance account can be done through various methods, including bank transfers, credit or debit card payments, and even cryptocurrency transfers. It's important to note that all transactions must be conducted from your personal bank account or company account (for registered legal entities) after the registration process.
Investor protection mechanism
Kviku Finance offers a buyback guarantee on loans listed on its platform. This guarantee ensures that if a borrower is more than 30 days late with loan repayment, Kviku will compensate investors for both the invested principal and accrued interest. The buyback guarantee mitigates the risk associated with borrower default. However, it's important to note that the primary risk to consider is the potential default of the loan originator.
To provide further protection for investors, Kviku has implemented a group guarantee. In the event that a loan originator faces financial difficulties and is unable to fulfill the buyback guarantee, the group guarantee comes into play. This means that other companies within the Kviku Group will step in to fulfill the buyback guarantee on behalf of the loan originator. The group guarantee adds an extra layer of security for investors in the event of loan originator bankruptcy.
By combining the buyback guarantee and the group guarantee, Kviku Finance aims to safeguard investor interests and minimize the risks associated with loan defaults and potential loan originator insolvency.
At Kviku Finance, all investments are facilitated through the auto-invest feature, which automatically allocates funds to available loans on the platform. Once you have deposited funds into your investor account, you can create your initial auto-invest portfolio. This auto-invest portfolio is the sole investment method offered by Kviku Finance, as it effectively and automatically invests in loans based on your specified criteria.
With the auto-invest portfolio, you have the flexibility to define your investment preferences, such as loan types, interest rates, loan durations, and other relevant criteria. The platform then utilizes this information to automatically invest your funds into loans that meet your specific requirements.
By utilizing the auto-invest feature, investors can enjoy a streamlined and hands-off investment experience, allowing their funds to be continuously deployed into suitable loans as they become available on the Kviku Finance platform.
One limitation of the Kviku platform is that it does not provide access to a secondary market, which means investors are unable to exit their investments before the scheduled loan term. Unlike platforms that offer a secondary market, where investors can sell their investments to other participants, Kviku does not currently offer this feature.
As a result, investors on Kviku must be prepared to commit their funds for the entire duration of the loan term without the ability to liquidate their investments prematurely. This lack of early exit options may limit the flexibility for investors who may require liquidity or wish to reallocate their funds before the loan term concludes.
It's important for potential investors to consider this factor and evaluate their investment strategy accordingly, taking into account their investment horizon and liquidity needs, as they won't have the option to exit investments ahead of schedule on the Kviku platform.
Summary of Kviku Finance review
Kviku Finance offers several appealing features that make it a reliable P2P lending platform. Investors can expect attractive yields, as well as the added assurance of a buyback guarantee on all loans. The platform boasts a robust auto-invest function, providing a wide range of available loans for automated investment. Moreover, the inclusion of a group guarantee, thanks to Kviku Finance's association with a larger group, enhances the safety of the loans offered.
However, it's important to note that Kviku Finance does have some limitations. Firstly, investors do not have the option to manually select specific investments, which may deter those who prefer a more hands-on approach to investing. Additionally, the absence of a secondary market means investors are unable to exit their investments ahead of schedule. These limitations should be taken into consideration, although they may not be significant concerns for all investors.
In summary, Kviku Finance is a favorable option for both novice and seasoned investors.
Benefits of investing with Kviku include:
- Competitive returns: Kviku offers highly competitive returns within the P2P lending market, with an average annual return of 12%.
- Buyback and group guarantees: Kviku provides buyback and group guarantees on loans, ensuring added protection for investors in case of borrower default or loan originator bankruptcy.
- Low minimum investment: investors can start investing on Kviku with as little as 10 euros, making it accessible for those with smaller investment amounts.
Consider the following points when investing with Kviku:
- Limited control over loan selection: Kviku does not offer the option to manually select specific loans for investment. Instead, investors can only utilize the auto-investing mechanism, which may not appeal to those who prefer a more hands-on approach.
- Lack of secondary market and early exit program: Kviku does not provide access to a secondary market or an early exit program. This means that once you have invested in a loan, you cannot easily sell or exit your investment before the loan term is completed, which may limit liquidity and flexibility.