For making this Mintos review, we have invested through the platform ourselves. This review is based on our own experiences, and should not be considered financial advice.
Attention: We have arranged a deal with Mintos, so you can get a 1% exclusive bonus on all the investments you make in the first 90 days. To get the bonus, you just have to sign up with Mintos with any of the links on here on our Mintos review.
But for now, simply read through our Mintos review and see if it is for you. For further reference, you can also check out P2PLendingSites.com’s Mintos review.
Table of contents:
- What is Mintos?
- What rate of return can you expect?
- Who can invest via Mintos?
- Buyback guarantee
- Mintos secondary market
- How to set up a Mintos Auto Invest strategy?
- Mintos review – Conclusion
What is Mintos?
Mintos is a P2P lending platform originating from Latvia in Europe. They entered the market in early 2015, and have since then grown to be the worlds largest platform of its kind. At the time of writing, they have over 100.000 registered investors from 71 countries.
They have offices in several continents where more than 50 people are employed – and they are constantly employing more people to meet the demand for their product. Their employees are very innovative and are constantly making improvements to the platform.
Therefore, Mintos have become an award-winning platform, that has won Altfi’s People’s Choice Award in both 2016 and 2017.
Although Mintos is a fairly new platform, they have also managed to be profitable in less than 3 years. In 2017 their revenue was EUR 2.1 million and they ended up with a net profit of EUR 195.000.
Their great success is probably due to their solving of scalability issues a lot of other P2P lending platforms often run into.
Opposed to a lot of other P2P lending platforms, Mintos works by connecting loan originators with investors instead of issuing the loans themselves.
As a result of this, Mintos is a very scalable platform. This is good for investors, as the platform is not as likely to run out of lucrative investment opportunities.
Mintos offer loans issued in a broad variety of currencies, loan types, locations and through a lot of different loan originators.
Therefore, you will have a lot of options to diversify and choose loans that fit your preferences.
What rate of returns can you expect?
At the time of writing, the average return for investors on Mintos is 11.7%.
The weighted average returns our current loans matches this number pretty good at an 11.8% weighted average interest rate.
On the picture below you can have a look into our investments. Here you can see how their interest rates are, and how long they have until maturity.
Furthermore, we have experienced that our return has been very stable and predictable month after month.
Who can invest via Mintos?
Currently, it is possible to invest via Mintos in the countries that are colored blue.
Investors from these countries can look forward to returns well over 10%, as the current average net annual return on the platform is a staggering 11.7%.
A vast majority of all the loans on Mintos comes with a buyback guarantee.
Essentially the buyback guarantee is a promise, that if a borrower doesn’t repay their loans within a specified timeframe, the loan operator will have to buy back the loans from you.
Therefore, the biggest risk you face will be that the loan originators go bankrupt, and thereby fails to deliver on their promise.
What happens if a loan originator goes bankrupt?
It is unlikely that all loan originators will perform endlessly without any problems. Therefore, it is very important to diversify between the loan originators. Especially due to the fast implementation of new loan originators on Mintos platform.
However, though all the 3.5 years Mintos have been operating, they have only had problems with one loan originator called Eurocent. The company initially ran into troubles after only 4 months on Mintos platform. Since then Eurocent ended up declaring bankruptcy.
Even though Eurocent ended up declaring bankruptcy, over half of the invested principal has been recovered. You can learn more about Eurocent on Mintos blog. But just be aware that problems with loan originator aren’t unlikely to happen in the future as well.
So even if you only choose loans with a buyback guarantee, it is still important for you to diversify between a lot of loan originators. But this part, the platform makes very easy for you.
And since there are well over 40 loan operators to choose from, it should be possible for you to lower your risk by diversifying your P2P lending portfolio.
Mintos secondary market
Mintos have a secondary market, where it’s possible for you to buy loans from other investors, who want to cash out on their loans or try to sell their loans for a markup.
You can also sell your own loans on the secondary market.
Therefore you won’t be stuck with your loans if you find even better investment opportunities elsewhere.
Typically it’s possible to snatch up loans slightly discounted on the secondary marketplace.
So we tried to cherry-pick loans from the secondary to see if it was worth the time.
Even though it was possible to make some extra money finding discounted loans, we found it not to be worth it.
You could work at nearly any job and make more money per hour instead of cherry-picking loans on Mintos secondary market.
Luckily for you, Mintos is now introducing their auto investor for the secondary market. An option that was not available when we started reviewing them.
How to set up a Mintos Auto Invest strategy?
Mintos Auto Invest option allows you to invest in a very effortlessly way. We highly recommend using this and letting Mintos do the hard work. This way you won’t have the struggle picking loans on a daily basis.
How to set up a Mintos auto invest strategy:
- Make sure you have created an account
- Head to the “Auto Invest” tab
- Click “Create new Auto Invest strategy”
- Choose on of Mintos Investment Strategies or make a Custom Strategy
- Tailor your strategy to fit your desires
- Activate it and start investing effortlessly
We went with the diversification strategy but tweaked it to only include loans with a buyback guarantee. We also adjusted what kind of interest rate we wanted to receive.
When you have set up the auto investor, simply let Mintos do its wonders of making you passive income.
Even though it’s a passive way of investing, we recommend checking up on your auto investor from time to time. We haven’t had any problems, but it’s better to be safe than sorry.
Mintos review – Conclusion
As a conclusion to our Mintos review, we found that if you are looking for a P2P lending platform that will scale with demand, there is no way around Mintos.
The platform offers high return investments, that due to buyback guarantees are fairly secure.
By using their auto investor, you can also make your investing easy and passive.
A big drawback with Mintos is that you’ll need to manually add new loan originators to your auto investor. This happens due to the fact that they often add new loan originators to the platform. But they are continuously improving their platform, so this is might not a struggle in the future.
Protip: When transferring money to Mintos, make sure you transfer it in the currency the loans you want to buy are issued in. Otherwise, you will be met with a relatively high exchange fee.
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