Value Nomad

April 19, 2019

Kuetzal Review (Peer to Peer to Lending Platform)

Kuetzal Review: Examining one of the emerging peer to peer platforms in Europe that is offering high yielding investment opportunities.

Peer to peer lending is becoming popular day by day, for this reason, investors everywhere are looking for the most reliable and profitable platform to invest in. In this Kuetzal review, we take a look at one of the new platforms that is offering high-interest rates and unique guarantee services. Read on and find out if it’s the best for you.

Kuetzal review

Kuetzal Overview

If you follow online financial trends, you most likely have come across the term peer to peer lending, if you haven’t, here is a quick definition. Peer to peer lending is a debt financing method that enables individuals to lend or borrow money without going through an official institution such as a bank.

Instead, the borrowers meet the lenders through an online platform. In the process, the method removes the middleman saving the participant’s time and the hassle involved in the traditional brick and mortar lending scenario. The simplicity and the availability of the required technology has seen peer to peer lending industry grow by double digits every year in Europe.

Due to the industry’s rapid growth, new players are emerging every year, one of the emerging platforms is Kuetzal. Kuetzal is a new peer to peer lending platform that rose to popularity at the end of 2018. It is based in Tallinn, Estonia and was registered on 4th July 2018.

The platform has aroused public interest because of its unique Kuetzal Care feature that guarantees that the projects covered will be financed even if investors do not reach the set goal. That alone makes the platform an interesting option, but that is not all, it also offers returns of up to 21% per year. The interest rates average at 16% per year. The platform is subject to both Estonian and European laws.

Let’s examine how the platform works, and the first part of our Kuetzal review is about getting an account set up.

Opening an Account on Kuetzal

The platform has one of the simplest account opening processes. Opening an account on Kuetzal is free. To open an account you need to provide your first and last name, active email address, country of residence, a working phone number and a password for your account.

The company name and registration number are not mandatory but are provided for in the registration form. The registration process takes less than 2 minutes.

Click here to open an account on Kuetzal

How to invest in Kuetzal

After completing the registration process, confirm your account’s email by clicking on the message you will receive from Kuetzal. You can now make a bank transfer to start investing on the platform. For the first deposit, you will need to use your personal bank account to verify your identity.

For subsequent deposits you can use other payment methods such as Skrill and Neteller. The platform will provide the account number for the transfers. Your deposit will reflect in your account within 2 working days.

Currently, the platform only allows investors to invest manually as it does not have an auto-invest tool yet. However, this is not a problem as there are few projects on the platform and can be managed manually. The minimum investment per project is 100 EUR.

Types of Investments Available at Kuetzal

Currently the platform only deals with peer to peer loans. All the loans are in Euros to minimize the effect of currency fluctuations. The loan terms are between 12 and 24 months.

Most of the projects available have interest rates ranging from 11% to 21%, some loans have interest rates of as low as 6% but with the expected interest rate, they may rise up to 15%. Kuetzal has provided no details on how the final interest rate is calculated. Loans covered by the Kuetzal Care start earning interest from the next day after the investment is made.

kuetzal review

The platform does not provide a buyback guarantee for the projects but it gives investors the opportunity to sell the investment back to the platform. This will cost you 10% of the amount you decide to withdraw from the investment. You must ensure the project is covered by the ‘investment return’ tool.

Kuetzal Auto Invest Tool

Currently the platform does not have an Auto-invest function. This should not be a problem considering the current volume of operations is still low.

How much can you earn on Kuetzal

The majority of the projects on the platform have fixed interest rates ranging from 11% to 21%, the platform boasts an average of 16% return per year. Depending on project success, the interest rates may increase during the loan period.

The amount financed varies from project to project with most being above 100,000 EUR, by the end of December 2018 the platform had projects with a total value of 5 million EUR.

Investors can request withdrawals from one euro cent at no cost. The withdrawals are processed quickly and reflect in your bank account within 2 days. Kuetzal charges project owners individually.

Who can invest Kuetzal

To invest in the platform, one must be of legal age (18 years). There are no geographical and nationality restrictions on who can be an investor. The platform, however, does not accept projects or investors from blacklist countries.

If you want to fund a project though and not be an investor, your business project must be based in EEA + Switzerland.

Kuetzal Pros

  • Kuetzal Care guarantee – this means that all projects covered will be funded if they don’t reach the goal. This also means that interest rates are calculated from the next day after the investment is made and not after the goal is attained.
  • High returns – the projects on the platform have interest rates of up to 21%

Kuetzal Cons

  • Minimum investment per project is 100 EUR.
  • The platform has no buyback guarantee.

Kuetzal Verdict

Our overall Kuetzal review verdict is rather positive. The platform although new has a lot to offer to investors. Through its exclusive Kuetzal Care guarantee, investors start earning interests immediately. Based on the high involvement of Kuetzal in all stages of the loan- from the filter, selection to the economic level, the platform does not need years of experience to prove itself.

kuetzal review 2

The high-interest rates make the platform suitable for new investors and others looking to start earning immediately.

Other Crowd Investing Resources

For those looking for other similar peer to peer platforms to invest, you may want to read some of our other reviews. There are many peer to peer lending and investing platforms currently available, and you can diversify your interest income by using several of them simultaneously.

You can consider some other peer to peer companies checking our Peerberry review and our Grupeer Review. Check our post on the best peer 2 peer lending platforms in Europe, and the best real estate crowdfunding platforms in Europe.

Are you already investing in Kuetzal or in any other peer to peer lending platform? Leave your thoughts and questions about this Kuetzal review below.

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