In 2018, Mintos introduced a rating of the loan originators which takes profitability, equities, liabilities and other assessment factors into account. This should give investors the possibility to better judge which lenders they want to invest in. I think that’s a good start but since many new loan originators with basically no track record but surprisingly good ratings can be found on Mintos I started to look for more information on the internet. I found this very helpful website that offers an independent and regularly updated rating of Mintos’ loan originators: http://explorep2p.com/mintos-lender-ratings/
The guys from p2pexplore tend to give more weight to a good track record. Lenders which have been successfully active for a longer time tend to score a higher rating. I invest in all loan originators that score at least 65 points while trying to keep the effective interest rate somewhere between 11% and 12%. That’s already close to the maximum you can get on Mintos (at least for loans with Buyback Guarantee) and gives me a good feeling about the balance between diversification and profit. My maximum loan duration is 24 months but I guess that’s up to personal preference. When you set your Auto Invest strategy make sure to enable the diversification setting so Mintos will actually spread your funds over all selected loan originators!
Varks Am for short term loans
In addition, I invest into short term loans from Varks AM. They got a poor rating on p2pexplore but Varks has been a very profitable business in 2018 (5th most profitable credit organizations in Armenia in 2018, see here: http://www.armbanks.am/en/2018/11/15/117160/). These current Varks financials are not available on Mintos yet and probably have not been considered in the lender ratings on p2pexplore.
A nice advantage of loans from Varks are the high interest rates between 12% and 14% and the short loan duration of max. 30 days. This gives me a high monthly cash turnover from which I can withdraw funds relatively quickly if I need to. I just need to stop Auto Invest for some days to get a few hundred Euros of free funds to withdraw.