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Twino P2P lending platform review

Twino lets you invest in unsecured consumer and property-backed loans from Latvia, Poland, Russia, Kazakhstan, and Vietnam.

Published:  Tuesday, 29 December 2020
Author:  Daniel
Launched:
2009
Headquarters:
Latvia
Investors:
18,000
Investors from:
Global
Investments Funded:
740 million €
Investment Types:
Consumer Loans, Property-Backed Loans
Investment Countries:
Latvia, Poland, Russia, Kazakhstan, Vietnam
Investment Terms:
1 - 60 months
Interest rates:
8% - 16%
Minimum Investment:
10€
Currencies:
EUR
Early Exit:
secondary market

The Latvian-based peer-to-peer lending marketplace that started in 2009 and currently has more than 18.000 investors registered on the platform.

At the end of 2020, more than 740 million EUR worth of loans were funded on the platform. You can view more statistics about Twino on their website.

There are no fees on the platform. Twino is making money from the spread between what interest rate borrowers are charged and what rate is offered to the investors.

Opening an account

Anyone in the world can open an account on Twino, as long as they have an EU bank account.

If you don’t have an EU bank account, you can also use Transferwise or Revolut. If you don’t have a Transferwise account, click here to open one (I might get some commission if the referral link didn’t expire).

Where are my funds kept

Your funds are kept in a bank account separated from Twino’s assets. In the event that something goes wrong with Twino, your funds will be safe.

Why invest in Twino

BuyBack guarantee

Twino will compensate both the invested principal amount and interest, as well as pay the accrued interest in case a borrower is late with the repayment for over 30 days.

Payment Guarantee

Payment guarantee makes sure interest on the loans is paid according to the repayment schedule, even if the borrower is late with their payment. Twino will cover the late payments instead and then retrieve the money from the borrower.

When a loan defaults, you’ll still get the interest payments for that loan every month. I assume Twino covers the payments and then recovers them from the loan originators.

Platform experience

You can either manually invest in the available loans or set up an auto-invest profile.

For auto-invest, you set your investment profile by selecting interest rates you want to invest in, select if the loans should have Payment Guarantee and Buyback Guarantee, the limits you want to invest in a single loan, and then you wait.

The loans come in 5 different ratings: buyback guarantee, payment guarantee, A, B, and C. The A, B, C loans don’t have any protection, and I stayed away from them so far.

You can sell your loans on the secondary market and let other investors buy them. The weird thing is that when you invest in a loan, you don’t see if it’s sold by a loan originator or another user.

So, there’s no “secondary market” section. What you’re actually doing is selling the loan back to the market.

The only loans you can’t sell back are the loans that are defaulted. If the defaulted loan has a payment guarantee, you’ll still receive interest payments every month for it, until the end of the loan term.

Twino also has a nice little mobile app that lets you check your account status, adjust your auto-invest portfolio, and receive notifications. This was one of the things I liked most about Twino.

Summary on Twino

Twino has good things and bad things.

Twino offers good interest rates, between 8% and 16%. Furthermore, most of the loans come with a buyback or payment guarantee, so your investment is safe.

The payment guarantee stuff is cool – you’ll receive monthly interest payments on time no matter how the loan performs. If you invested in a 2 years loan and it defaulted after the first year, you’ll still receive your monthly payments until the end of the loan term.

The platform is intuitive and easy to use. There’s also a mobile app to use that has enough features that you don’t really need to log in to the website.

The Twino ventures is an interesting product, allowing you to also invest in property-backed loans on the same platform.

As a downside, the interest rates are lower than what similar platforms like Mintos offer for comparable risk profiles.

Check out Twino's website and learn more about them.

Visit Twino

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