Crowdlending is crowdfunding for loans. Private people lend small quantities to a company, a project, or another person, through an online platform. All these small contributions together make up the total amount of the loan. The person or company that receives the loan, pays periodically to every investor principal and interest according the agreed conditions.
ECrowd! is a crowdlending platform, meaning that you can lend money to verified and approved project investments in the real economy. These project are profitable and generate positive impact
At ECrowd! you will not find any speculative project.
Very simple: each loan is published with a term (period), an fixed interest rate and a re-payment schedule. We do not apply auctions or variable interest. Each month you will receive principal and interest payments, without any cost or commission.
To invest you need to be a registered investor, which you can do here. Once registered, chose the project you are interested in, and indicate the amount you would like to invest. For projects smaller than 100.000€ we request full payment, for bigger projects we request an initial downpayment of 10%. In this case we will only request the remaining amount, once enough investors have shown interest to invest, and once the external validation has been realized and approved.
More information can be found here.
The interest rates on the ECrowd! platform are fixed rates. When official rates rise, your investment might lose attractiveness compared with alternatives, but this will not affect the repayment schedule.
The final investor return is decided by 3 factors:
For example, in a portfolio with an average interest of 7%, an investor commission of 1% and a default rate of 2%, the final return to the investor is 7% -1% - 2% = 4%.
The good news is that ECrowd! doesn't like the small print and contrary to many other platforms, we don not charge any commissions to the investors. All commissions are charged to the project developer and we charge 0% investor commissions. For ever!!
The other good news is that our current default rate is also 0%. Various ther platforms offer high interest rates, but normally these go hand in hand with higher default rates. We recommend also our article about default in our blog.
To register you need to upload both sides of your valid national identity document, or your passport in case you don’t have one, and a bank receipt showing your name as the main account holder as well as the IBAN of the account.
In order to be considered an accredited investor, you have to comply with one of the following conditions:
The monthly instalments from your investments are deposited on your ECrowd! account. With the balance you can freely chose between three options:
Invested funds can not be recuperated. We do have an offline secondary market, where you can offer your investments to other investors. If you agree on the price, you will sell your investments to the other investor. For this service we charge a 2,5% commission.
In order to change your bank account, you need to send us a mail to inversores(to)ecrowdinvest(point)com, attaching a copy of a bank slip with your name and the IBAN of the new bank account.
Financial assets consist of all current accounts, stocks, mutual funds, pension plans and fixed terms that can be deposited in a bank. The remaining principal of your loans at ECrowd! are also considered as financial assets.
Yes, you can invite your family, friends and contacts. In case they invest, you both receive 0,5% of additional interest on your next investment. To refer individuals, enter in “My profile” section in your ECrowd! account From there, select “Share”. Now you can enter the name and emails of your contacts. That’s it. You can also see from this same section whether your contacts have registered, opened an ECrowd! Account and invested.
We also have a program to refer projects to be finance by ECrowd! This is called the project detective programe, details of which can be found here
So far we have intermediated more than € 1,600,000 and we have not had any payment default or delay, thanks to our strict project selection criteria.. If, in the future, there is a delayed payment, we will first contact the borrower in order to analyze the situation. ECrowd! loans normally do not default, but there can be temporary liquidity problems. In these cases we will renegotiate the payment terms in order for the borrower to pay back the loan. For example, if the promoter of an energy savings project cannot pay the instalment because achieved savings are lower than expected, increasing the duration of the loan will solve the problem. In extreme cass where the loan is considered as lost, we will transfer the recuperation of the loan to specialised loan recovery companies.
The maximum limit is € 3,000 per project, with a 12 month cap of € 10,000 for all crowdfunding platforms
Companies can invest as a legal entity. They must tick legal entity on the registration formand posteriorly upload the following documents:
ECrowd! is applying linear amortization to the loans, meaning that every month you will get paid back a proportional part of the loan, plus the interest on the outstanding capital amount. This means that every month, the interest part of the payment decreases, since the outstanding capital amount decreases on a monthly basis. This is contrary to the banks, which normally charge a fixed monthly instalment. In this system loans are amortized more slowly and more interest is paid. However, this means principal of the loan is recovered more slowly. ECrowd! prefers the linear system, in which loans are recovered more rapidly, which is favorable for the investor since he can diversify earlier on, and in which less total interest is charged, which is favorable for the project promoter. In order to keep the highest interest rate possible on your investments, we recommend you actively reinvest your account balance in new projects.
If you want to change your registered email address, you need to send an email to inversores(to)ecrowdinvest(point)com, indicating your full name and the new contact email. We will then proceed to change your mail
Once you are a registered investor, you will receive an email when we publish new active projects.. Please ensure you whitelist all emails coming from ECrowd! to ensure they do not go in your spam folder.
By law, this is only possible for accredited investors.
Enter the login screen, and click “I forgot my password”.
The public financing model absolutely fits our philosophy, since it allows direct participation of the residents of the municipality, or families that invest in school improvement projects, and saving public resources. In general, we actively seek to finance projects that involve local participation. We call those types of projects that involve the local community and immediate neighborhoods “Investment at Kilometer Zero” projects. Those types of projects which create a virtuous circle of collective finance are a core focus of our development activity.