Mintos P2P Lending Platform Review

Published by Daniel on

(Last Updated On: March 6, 2019)

Mintos is a peer to peer lending platform founded in Latvia in 2015. Currently, they offer an easy way to invest in loans from 28 countries originated from 58 lending companies. Since they started, they funded loans worth more than 1.4 billion EUR.

You can start investing in loans with multiple currencies with only 10 EUR.

Key features:

  • Loan types: Personal Loans, Mortgage Loans, Business Loans, Car Loans, Invoice Financing, Short-term Loans, Pawnbroking Loans, Agricultural Loans
  • Loan terms: up to 20 years
  • Interest rates: 7-18%
  • Fees: no fees
  • Minimum investment: 10 EUR
  • Currency: EUR, GBP, USD, RUB, SEK, DKK, ETC.
  • Secondary market: yes
  • Auto-invest: yes
  • Buyback guarantee: yes

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My portfolio:

  • Last update: March 2019
  • Started Investing: June 25th, 2018
  • Current value: 3738.95 EUR
  • Profit: 244.83 EUR
  • Net annual return: 10.93%

I’m mainly investing through the auto invest tool, so my Mintos portfolio has been running by itself for the most part. I’ve recently started to look more into the loan originators and their ratings because I’m trying to reduce the rate of the loans that are late with their payments (currently at 20%). Around 30% of these late loans are now loans in the grace period, so this is better than what I had a few months back.

3 months ago I did an update on my auto-invest profile, removing some bad loan originators and also increasing the loan terms from a maximum of 14 months to 24 months. Since then, I get a bit better returns and fewer late loans.

All the loans I’ve been investing in have a buyback guarantee. This means I get a bit lower returns (the maximum interest rates I found were at 12.5%) but my portfolio feels safer.

How it works

Mintos is a marketplace where other loan originators (lending companies) offer their current loans for investment. You invest in small parts of these loans, in order to spread your risk as much as possible.

Mintos rates these lenders from A to D (around 10 levels) based on company health, financial status, quality of loans.

Below is a summary of how Mintos works:

essential guide to Mintos

Can I join Mintos

Yes, as long as you have an EU bank account. Revolut or Transferwise would do just fine if you don’t reside in the EU.

Why invest in Mintos

Mintos is one of the best on the peer to peer market because of the large amounts of loans it provides, the different types of loans offered, the multitude of countries it offers loans from and the many loan originators on the platform. All these allow investors to diversify their portfolio and lower the risk of losing money.

It’s a big marketplace

The platform has loans from 30 countries like Armenia, Denmark, Georgia, Latvia, Moldova, Spain, Sweden,  Zambia and many others.

The types of loans offered are also well diversified: mortgage loans, car loans, invoice financing, business loans, short-term loans, personal loans and agricultural loans.

Mintos has registered investors from all over the world. There are currently 100.000+ investors registered on the platform. The average investment sum per investor is 4.581 EUR.

mintos investor statistics

The average net annual return for investors is 11.7%. The loan interest rates range from 5% to 18%, although the ones I use, with buyback guarantee, have a cap at around 12% interest rate.

Buyback Guarantee

Many loans come with a buyback guarantee policy. If the loan payments are more than 60 days late, the loan originator will purchase back the investment from you. You’ll lose the interest payments owed for those 60 days, but your capital won’t be locked or lost in a bad investment.

The loans with a buyback guarantee come with a slightly lower interest rate than loans without it. I can’t find loans with 18% interest rate and with a buyback guaranteed policy. The interest rates are around 10-12% and that’s still decent. I’d advise everyone to only invest in loans with a buyback policy but this depends on each one’s risk profile.

Investing in Mintos

Manual investment or using the auto-invest tool? Playing around on the secondary market buying low and selling high? It’s your call.

The primary market

There are hundreds of thousands of loans available on the primary market. Each loan has additional details about the borrower, payment schedule, collateral (if any).

mintos loan listings

The number of filters offered on the page could satisfy even the biggest control freaks in the world. There’s interest rates range, loan term range, currency, loan originator, country, loan-to-value ratio (if the loan has collateral), type of loan, buyback guaranteed or not, whether you invested already in it or not, and so on.

If you have some preferred filters you do every time you search for loans, you can save them and reuse them.

Mintos Secondary Market

The interface and the filters are similar to the ones on the primary market.

You can use the secondary market from time to time to find loans that have better interest rates than the ones offered at the moment on the primary market. The interest rates offered on the loans from the primary market vary from time to time. Some days you can find good deals with a 12% interest rate, other days you’ll only find deals at 10.5% interest rate. These low-interest rate days are a good reason to check if the secondary market doesn’t have better deals at a 12% – 14% interest rate.

Mintos Auto Invest

You don’t have enough time or will to check in daily on Mintos and invest your funds in new loans? No problem. Mintos has an auto-invest tool that you can set up and let it do the investment for you. You can turn your Mintos investment profile into a passive income tool.

If you don’t know what settings to add to your auto-invest profile, Mintos already has 3 predefined setups to choose from.

mintos auto invest predefined strategies

I wouldn’t touch these 3 investment strategies with a barge pole. The return on investments is a lot lower then you could do with a minimal setup of your custom auto-invest strategy.

Recently, I’ve only selected the loan originators with Mintos ratings A and B, to see if the number of loans from my portfolio that are late with their payments gets reduced. I’ve also increased the loan terms up to 24 months. It gets me better interest rates than the short-term loans I was investing in before.

Conclusions on Mintos

Mintos is the largest peer to peer lending platform in Europe (except the UK).  There are 60 lenders from 30 countries and currently there are more than 200.000 loans offered in the primary market.

The auto-invest tool is a great way to turn your investment into passive income. You set the parameters you’re interested in: loan type, country, loan originator (if you know something about them) and then let it run, collect payments and reinvest them.

Mintos has a buyback guarantee on some of the loans, which is all the loans I invest in. Unless Mintos or the loan originator goes bankrupt, you’ll always get your money back at the latest in 60 days.

The secondary market is a good option to have. In case you want to free up your funds fast, you can sell early your investments instead of waiting for the end of the loan terms.

The website offers a huge number of loan filters. For me, there are too many filters that I’m not going to use and make me spend more time on the platform than I would want to.

If you found my review useful, you can also check my reviews on other p2p lending platforms: FastInvest, Grupeer or PeerBerry.


Daniel

Learning and sharing what I learn about alternative investments.

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