Twino lets you invest in unsecured consumer loans from Poland, Georgia, Denmark, Russia, Kazakhstan, Georgia and Spain.
The Latvian-based peer-to-peer lending marketplace that started in 2009 and currently has more than 17.000 investors registered on the platform.
At the end of July 2019, more than 500 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.
- Loan types: Consumer Loans
- Loan terms: 1-60 months
- Interest rates: 8-12%
- Fees: no fees
- Minimum investment: 10 EUR
- Currency: EUR
- Secondary market: yes
- Auto-invest: yes
- Buyback guarantee: yes
- Last update: July 2019
- Started Investing: August 3rd, 2018
- Current value: 0 EUR
- Profit: 11.45 EUR
- Average interest rate: ~10%
I had big hopes for Twino but it didn’t really fit my expectations.I started with a test 275 EUR deposit and since then I only withdrew money from Twino.
One thing that makes me uneasy is that the number of loans on the platform is usually really low. Although this might be only because there are way more investors than loans available on the platform.
Update July 2019: It’s been a few months since I left Twino (see this article where I explain my reasons) and I don’t feel sorry at all. The platform only has loans at 8% interest rate and lots of loans delayed or defaulted. It doesn’t look like Twino is in a great place right now.
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.
Based on your first deposit, your account will use either EUR or GBP.
Why invest in Twino
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 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.
Investing in Twino
You can either manually invest in the available loans or set up an auto invest profile.
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.
It sometimes takes a few days until Twino finds any loans to put your money in. Or maybe I just caught a dry spell when I started investing with them.
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.
As of July 2019, I see there are lots of loans available on the market. I’m pretty sure most of these are loans re-sold by other investors that want out of the platform.
The mobile app
Twino 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.
You can’t withdraw money or manually invest from the app but it’s still cool because you can check your account.
Twino has good things and bad things.
Twino offers good interest rates, between 8% and 12%. 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 feature is similar to what PeerBerry or Viventor offers for late or defaulted loans.
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.
As a downside, the number of loans available is very small, and it sometimes it takes a few days until your auto-invest profile finds some loans that match your preferences. At this point, I’m not sure I’ll add more funds to my account here.
As a downside, the interest rates dropped to only 8%, while other platforms (like Mintos), offer much better returns. It might not be the right moment to invest in Twino.
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