Indemo.eu Review

Based on checking the website, Indemo.eu positions itself as a platform enabling retail investors to access real estate-backed loan investments, typically reserved for institutional players. While the platform highlights features like EU licensing and regulation, an Investor Compensation Scheme, and a focus on Spanish real estate, the core investment model involves interest-based loans Riba and discounted debt investments, which inherently fall into categories that are impermissible in Islamic finance. This makes Indemo.eu an unsuitable option for those seeking Sharia-compliant investment avenues.

Read more about indemo.eu:
indemo.eu Review & First Look
Indemo.eu Features (Ethical Considerations)
Indemo.eu Pros & Cons (Focus on Cons for Ethical Investing)
Indemo.eu Alternatives
Does Indemo.eu Work? (From a Sharia Perspective: No)
Is Indemo.eu Legit? (From a Sharia Perspective: No, Due to Impermissibility)
Is Indemo.eu a Scam? (Not a Scam, but Ethically Problematic)
Indemo.eu Pricing (Implied by Returns, but Ethical Cost is High)
How to Avoid Indemo.eu (and Similar Impermissible Platforms)
indemo.eu FAQ

Here’s an overall review summary:

• Investment Model: Focuses on mortgage loan investments and discounted debt investments.
• Target Audience: Retail investors seeking access to real estate-backed loan opportunities.
• Minimum Investment: €10.
• Stated Returns: Average Annual Return of 25.3% overall, 10.0% per annum for Mortgage Loan Investments, 15.1% per annum for Discounted Debt Investments.
• Regulation: Fully licensed and regulated in the EU.
• Investor Protection: Covered by EU Investor Compensation Scheme up to €20,000.
• Asset Backing: Investments are backed by Spanish real estate.
• Fees: Advertises “no fees attached” for exclusive peer-to-peer loan opportunities.
• Transparency: Provides information on low LTV ratios, independent valuations, and a predictable legal system in Spain.
• Islamic Compliance: Not permissible. The investment model is based on interest Riba and debt trading, which are forbidden in Islamic finance.

Indemo.eu aims to democratize access to a sector traditionally dominated by large institutions: real estate-backed loan investments. indemo.eu FAQ

The platform asserts that it allows individuals to earn income through assets like mortgage loans and discounted debts, emphasizing diversification across Spanish real estate objects, which they claim limits exposure and reduces portfolio volatility.

On the surface, the figures presented, such as €12.7M total funds invested, €1.7M totally repaid, and over 10,200 investors, might seem appealing, along with an enticing “25.3% Average Annual Return.” However, a deeper dive into the specifics of their offerings—Mortgage Loan Investments with a stated “10.0% per annum interest” and Discounted Debt Investments with an “Expected Return – 15.1% per annum”—reveals the underlying issue.

The term “interest” is explicitly used, and the very nature of profiting from defaulted loans discounted debt raises red flags from an Islamic finance perspective.

The website tries to reassure potential investors by highlighting its “Fully licensed and regulated in the EU” status and coverage by the “Investor Compensation Scheme,” protecting cash and securities up to €20,000. They also mention “Low LTV Ratio,” “Independent Valuation” by top appraisers like Tinsa and Idealista, and a “Predictable Legal System” in Spain, all designed to build trust and mitigate perceived risk.

They even boast “8 years of track record” for their loans servicing company, supervised by the Central Bank of Spain, managing a portfolio above €65M. How to Avoid Indemo.eu (and Similar Impermissible Platforms)

These points are meant to convey a sense of security and professionalism.

Yet, despite these apparent safeguards and assurances, the fundamental mechanism of Indemo.eu’s investment products—earning predetermined returns on loans, whether performing or non-performing—is predicated on the concept of Riba interest. In Islamic finance, Riba is strictly prohibited, as it is seen as an exploitative gain derived without a reciprocal exchange of goods or services or tangible risk-sharing.

Investing in mortgage loans with a fixed interest rate, or profiting from the discounted sale and subsequent recovery of “bad debts” where the profit often stems from the initial interest component or speculative trading of debt, directly contravenes the principles of equity, justice, and risk-sharing that are central to Islamic economic ethics.

Therefore, for an individual seeking genuinely Sharia-compliant investments, Indemo.eu, despite its attractive figures and regulatory claims, presents an insurmountable conflict.

It’s crucial to understand that in Islamic finance, wealth generation must come from productive activities, genuine trade, or asset-backed investments where risk is shared between parties. Indemo.eu Pricing (Implied by Returns, but Ethical Cost is High)

Loans are permitted if they are interest-free Qard Hasan, and real estate investment should involve direct ownership, partnership Musharakah or Mudarabah, or leasing Ijarah arrangements that avoid interest and excessive speculation.

The concept of “making a healthy profit” from the sale of attached real estate in Discounted Debt Investments, while sounding like real estate, is fundamentally tied to the recovery of a debt that originated from an interest-bearing loan, making the entire transaction problematic.

Therefore, for those committed to ethical and Sharia-compliant financial practices, Indemo.eu’s offerings are not a viable path.

It’s not about whether the platform is “legit” in a conventional sense.

It’s about whether its operations align with Islamic principles. In this case, they do not. Is Indemo.eu a Scam? (Not a Scam, but Ethically Problematic)

Here are some excellent, ethical alternatives that align with Islamic principles:

Best Ethical Alternatives to Interest-Based Investments:

1. Wahed Invest

   • Key Features: Offers Sharia-compliant digital investment portfolios. Investors can choose from various risk levels, with assets diversified across global stocks, Sukuk Islamic bonds, and gold, all screened for ethical compliance. Wahed ensures all investments avoid industries like alcohol, tobacco, gambling, and conventional finance.
   • Price: Management fees typically range from 0.49% to 0.99% annually, depending on the plan.
   • Pros: Fully Sharia-compliant, easy to use for beginners, diverse portfolio options, global accessibility, robust screening process.
   • Cons: Limited control over individual asset selection, minimum investment requirements may apply for certain plans.

2. Amanah Ventures

   • Key Features: Focuses on ethical venture capital and private equity investments, typically in tech and sustainable industries. They aim to support real businesses with tangible products and services, avoiding debt-based models. While not directly for retail investing, it offers a look into ethical venture capital opportunities often structured as equity partnerships.
   • Price: Varies significantly based on the fund and investment size. typically for accredited investors.
   • Pros: Supports real economic growth, high potential for returns with higher risk, aligns with Islamic principles of risk-sharing.
   • Cons: High barrier to entry often for accredited investors, less liquidity than publicly traded options, higher risk due to early-stage investments.

3. Islamic Relief USA Zakat-eligible projects Is Indemo.eu Legit? (From a Sharia Perspective: No, Due to Impermissibility)

   • Key Features: While not an investment platform in the traditional sense, donating Zakat or Sadaqah to reputable organizations like Islamic Relief USA, which fund sustainable development projects, aligns with Islamic wealth circulation. These projects often involve establishing small businesses, agricultural initiatives, or providing essential services that generate real economic value and benefit communities.
   • Price: Donation-based.
   • Pros: Direct social impact, fulfills religious obligations Zakat, supports productive economic activities at a grassroots level, builds real infrastructure.
   • Cons: Not a financial return-generating “investment” for the donor, focus is purely philanthropic.

4. Amana Mutual Funds

   • Key Features: Provides a range of Sharia-compliant mutual funds that invest in publicly traded companies. These funds are managed according to Islamic principles, avoiding interest-bearing instruments, companies involved in prohibited activities, and excessive debt. They offer different funds focusing on growth, income, or global markets.
   • Price: Expense ratios vary by fund, typically between 0.50% and 1.00%.
   • Pros: Professionally managed, diversified portfolios, strict Sharia screening, accessible to retail investors.
   • Cons: Management fees apply, market fluctuations can affect returns.

5. StashInvest Smart Portfolios with Ethical Options

   • Key Features: Stash offers “Smart Portfolios” which can be customized to align with certain values, including socially responsible investing SRI options. While not exclusively Islamic, users can curate portfolios that avoid harmful industries. This allows for direct ownership of stocks and ETFs that align with ethical standards, avoiding debt instruments.
   • Price: Subscription fees typically range from $3 to $9 per month, plus expense ratios for ETFs.
   • Pros: Accessible for small investors, encourages direct ownership of assets, allows for some ethical screening, educational resources.
   • Cons: Requires manual screening by the user to ensure full Sharia compliance for individual stocks, not a dedicated Islamic finance platform.

6. Islamic Gold and Silver Bullion Physical Assets or Kinesis Money Gold/Silver backed digital currency

   

   • Key Features: Direct investment in physical gold and silver bullion. Historically, gold and silver have been considered permissible forms of wealth preservation and are often seen as a hedge against inflation. Kinesis Money offers a digital currency backed by physical gold and silver, allowing for easier transactions while retaining the asset backing.
   • Price: Spot price of gold/silver plus premium for physical purchase. Kinesis Money has transaction fees.
   • Pros: Tangible asset, Sharia-compliant wealth preservation, potential for capital appreciation, provides a stable store of value.
   • Cons: Storage costs for physical bullion, price volatility, not an income-generating asset, Kinesis involves a more complex digital asset approach.

7. Crowdfunding for Ethical Businesses e.g., platforms like Fundable or StartEngine, with careful project vetting or StartEngine Does Indemo.eu Work? (From a Sharia Perspective: No)

   • Key Features: These platforms allow individuals to invest in startups and small businesses, often through equity ownership shares rather than debt. While not exclusively Islamic, a diligent investor can seek out companies that operate ethically, produce permissible goods/services, and avoid interest-based financing in their structure. This aligns with Musharakah partnership principles.
   • Price: Investment amounts vary, typically starting from a few hundred dollars. Fees may apply for the platform or for the company raising capital.
   • Pros: Supports real businesses, direct equity ownership, potential for high returns, aligns with risk-sharing and productive investment.
   • Cons: High risk startup failure rates, illiquidity of investments, requires significant due diligence to ensure ethical and Sharia compliance of the underlying business. Not all projects will be suitable.

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Indemo.eu Alternatives