We analyzed a case study of a portfolio launched in June 2021 with an initial €10,000 investment, supplemented by monthly contributions of €300 until June 2025. For most projects in this portfolio, principal repayments were made twice a year, while interest payments were received monthly. Over four years, this approach generated a whooping 12.2% annual interest rate, while total active portfolio grew to an impressive €34.230.

Here are key strategies that contributed to this portfolio’s success:

  • Regular €300 investments steadily increased the loan portfolio.
  • Both principal and interest payments were reinvested, compounding growth.
  • The investor spread funds across a variety of loans, reducing exposure to individual project risks.

What brings high yields

Andrius Liukaitis classifies this case study as a medium-risk portfolio. Initially, the investor deployed larger amounts (€500–€3,000) in a single project to build up the portfolio, then adopted a more consistent strategy of €100–€300 investment per project. This balance between early momentum and steady diversification helped maximize returns while managing risk.

“With InSoil Finance, investors can diversify not only by geography, but also by asset type, risk rating, loan term, farm type, and loan purpose. Spreading investments across a wide range of loans helps shield your portfolio from external shocks“, explains Andrius Liukaitis. 

How to Assess Projects on InSoil Finance

InSoil Finance enables investments in Lithuania, Poland, Latvia, Bulgaria, and Portugal. When evaluating potential projects, Andrius recommends focusing on the following factors:

Risk Rating: InSoil assigns ratings from A+ (lowest risk) to C (higher risk), updated regularly based on historical performance. This transparent system helps investors gauge each loan’s risk profile.

Financial Metrics: The average funded farm has 14 years of operational history. InSoil provides two years of financial data for each borrower, allowing investors to assess business stability and performance.

Loan-to-Value (LTV) Ratio: LTV indicates the proportion of assets pledged relative to the loan amount. Higher collateralization enhances investment security in case of borrower default.

Loan Duration: It’s essential to match investment duration with your liquidity preferences. InSoil loans typically range from 6 to 48 months. Andrius notes that longer-term loans often carry lower risk, as they give farmers more time to repay.

Balancing Risk and Reward

“High double-digit returns are appealing, but investors should honestly assess their tolerance for repayment delays. Chasing the highest yields may require patience and composure when repayments are late,” Andrius advises.

While it’s possible to achieve slightly higher returns by concentrating funds in a single project, broad diversification is the best strategy for long-term peace of mind. Since its inception in 2020, the InSoil Finance community has funded over €80 million in agricultural loans, with €40 million already fully repaid. To date, investors have enjoyed a weighted average return of 13.16%.