Mintos launched in 2015, and is considered as the biggest marketplace for p2p loans. It has recently reached a staggering €3billion in investment loans. Mintos comprises of 67 Loan originators (it is where borrowers apply for loans) and from 33 different countries across 3 continents. This is great for diversification and also having investments in emerging countries will yield greater returns.
Mintos focuses more on shorter term loans, business, consumer, agriculture, mortgage and other personal loans. To add with the diversification strategy, Mintos allows investors to deposit and invest in multiple currencies like, EUR, USD, GBP, RUB, PLN, SEK, CZK, KZT, DKK, GEL. Mintos does offer an exchange, however that comes with a fee. To avoid this fee I encourage you to use Revolut or Transferwise, its a free multi-currency exchange app that provides you a visa card and lets you use multiple currencies, wherever you are in the world.
Mintos also offers a secondary market, where people can buy or sell their part in a loan for a discount or a premium, allowing for you to achieve an even higher return.
I have been invested in Mintos since May 2017. Mintos was my very first contact to P2P lending and I’m glad I took the plunge to put my first €500. The platform grew to the biggest one and returns have been varied especially lately with returns going as low at 5%. Aside from that it is a great platform for those starting in P2P lending.
- €0 fees for opening account
- €0 fees for investing
- €10 as a minimum investment
- Avg interest rates of 8%-14%
- Investments in Multiple currencies available
Mintos does offer a buyback guarantee on the majority of loans they offer, but keep in mind that not all loans are. On their site they claim that around 85% of loans published are with a buyback guarantee. If a loan is delayed by more than 60 days, the loan originator will repurchase the investment for the nominal value of the principal and the accrued interest till the date of repurchase. This happens automatically and with no additional efforts required from your (the investor) side. Loans with a buyback guarantee are marked with . So always make sure to invest in those loan types.
There is a large variety of loan originators on the Mintos marketplace. Each loan originator is carefully assessed. Due diligence procedure is put in place and perform thorough analysis of financial statements, management quality, underwriting policy, credit scoring, loan portfolio performance, and data accuracy to ensure that the loan originator complies with the strict risk standards. After the launch monitoring is continued on the loan originator for risks on an ongoing basis.
As a platform, mintos can be quite busy and might take a while to get grasps with. The do offer an auto-invest and you can set your own criterias and change them at any time. You can also pause or cancel auto-invest whenever you wish.
If you want to sell your investment before full repayment of the loan, you can use the secondary market. This is infact a very busy market as investors can increase their liquidity, increase their revenues, while potential investors have options always open to invest in something new and can also invest in loans at a discounted price.
This is where it differs from other platforms. Due to high activity in short term loans and small amounts it is very hard to forecast your interest payments. Every loan do have a payment schedule, but its quite common for borrowers to pay after the due date. There is also the grace period which affects your interest payments and the fact that the site is not as user friendly also doesnt help. One other thing is they calculate your percentage net annual return, however it differs from the actual return. In my case I have 10.22% but I calculated I made around 6%
Mintos Invest & Access
This is very interesting new feature for two types of investors, those who prefer a lower risk type of investment and/or those who would like to liquidate their investments fast in case of emergency. Invest & Access allows you to invest money in a more stable way and with access when you need it. When its time to withdraw from your invest and access account, minots will sell your loans in the secondary market. And because its a very active market you will have your money in no time. Mintos claims that avg returns are at 8.52%, however I believe the real return will be less.
My Personal Experience
Mintos was my first contact with P2P lending. Overall, tt is a really good platform especially for the beginner investor who would like to get started with smaller amount and diversify into plenty of loans. Mintos has a long track record, you money is more stable than other P2P platforms and it is the biggest P2P platform in Europe. With higher amounts of investments I found that I have alot of cashdrag, so alot of paid loans not reinvested back, and also the real net return does not reflect the same net annual return shown on my dashboard.
Signup Bonus & Cashback Offer
When signing up and start investing you will receive 1% of cashback within the first 90 days of your total investments.