p2p loan portfolio

So, the year 2019 ends with yet another successful month for my p2p loan portfolio. All in all, I managed to make a 514€ profit in December. Also, this is a time to look back on the year 2019 as a whole which was extremely profitable for me.

See the numbers in detail here.

I started into the year with only two p2p platforms (Bondora and Mintos) but added several others bit by bit. The roughly 29.000€ that I started with in January have now turned into about 52.000€ through 18.000€ deposits and 5200€ interest earned.

Averaged over all platforms, my return on investment in 2019 was 14.1%.

Let’s take a look at the platforms one by one.

Bondora

Since I think that Go&Grow is a pretty good and transparent investment opportunity, I stocked up my account by 5000€. These are my “go-to” funds and I might make use of the liquidity that Go&Grow offers at some point.

I stopped investing into single loan shares via the Portfolio Manager since the timespan required to reach profitability is too long for my taste. That’s a personal choice and doesn’t mean that the “normal” investment into single loans on Bondora does not return a profit eventually. See my video on that topic in a previous post.

Long story short, my return on investment on Bondora will keep decreasing over time and converge on 6.75% eventually.

If you’d like to start investing on Bondora this link will get you a 5€ bonus.

Mintos

Despite some hick-ups with loan originators that ran into financial or legislative trouble, Mintos is still a close to perfectly performing platform. In terms of diversification and ease of use there is still no better option, I think. Over the course of 2019 I managed to get a 13.5% return on investment which is great given the severe drop in interest rates in September/October.

Also, my loans in Russian Rubles are running smoothly with 18% average interest rate which certainly helps to keep my overall profits on a high level.

This link will give you a 0.5% cashback on the investments you make in your first 90 days on Mintos.

Envestio

I added Envestio to my portfolio in January 2019 and this platform quickly became the biggest contributor to my monthly passive income. This is due to very high interest rates and zero loan defaults in 2019. On average, I get a 17.5% return on investment which is outstanding.

Lately, there has been some criticism regarding the new owner and COO of Envestio. You can read up on that here if you are interested. Also, there have been concerns about the limited number of borrowers that took multiple loans from Envestio (see here). On the latter topic I can only say that by now there are 23 individual borrowers with 44 active loans on Envestio. I don’t see a big issue here.

Regarding the new owner of Envestio we’ll have to see where he will take the platform. I tend to wait and see before making a judgement here.

The new COO Eduard Ritsmann published a video on YouTube in which he explains his ideas for Envestio, so you can see for yourself.

Envestio offers a 0.5% cashback on the investments that you make in the first 270 days after registration.

Crowdestor

This platform is basically exploding with new business loans every week and is run by a sympathetic team of young entrepreneurs. They have recently re-designed the website and important features like an Auto Invest function will be added soon.

In my opinion, this is currently the most interesting platform for investments in p2b loans. The interest rates are very competitive and range between 12 and 26%. On average, I’m making close to 16% annual profit here.

For 2020, I expect a much further growth of the platform and I’m excited to see how Crowdestor will develop.

You can open an account through this link. There’s no cashback for new investors right now but I’m working on it 😉

Kuetzal

One of the latest additions to my portfolio and sadly maybe a really bad choice. Kuetzal offers p2b loans very similar to Envestio and Crowdestor but lately came under scrutiny for potential fake loan projects. The Kuetzal team has been completely replaced and it is open if and how this platform can continue its business.

Looks like a black sheep in the p2p world. I currently advice against investing here until these issues are resolved.

Iuvo-Group

It’s been 5 months since I started investing in loans on the iuvo-group platform. My return on investment now stabilized around 9.5% which I think is what you can expect from this platform. The returns are lower than e.g. on Mintos since there is no interest paid for delayed loans. On the other hand, all loan originators that are listed on iuvo have solid financials and have been in business for a long time. Furthermore, they are required to hold 30% skin in the game.

So, the iuvo-group pays more attention to stability and the coming and going of loan originators that we see on Mintos will likely not happen here. The price is a somewhat lower profit but I think this is a good addition to my p2p loan portfolio.

If you like to invest with the iuvo-group and receive a 90€ sign-up bonus you can send me an email to hallo-at-financiallyindependent.eu.

Grupeer

Grupeer is the platform that I write the least about. The reason is quite simple: everything is running smoothly. No drama, no scandals. Just a continuous income stream with around 13% interest rate from business and real estate projects. This platform will certainly receive additional deposits in 2020.

You can check out the platform through this link.

CoinLoan

I still very much like the concept of this platform. Loans are secured by a collateral that the borrower has to pledge to CoinLoan. The collateral is paid in crypto currencies and the maximum loan to value is 70%. In case the borrower cannot pay back the loan, CoinLoan will automatically sell the collateral to pay back the lender.

So far I was able to make above 15% profit on CoinLoan by issuing loans on my own terms on the marketplace. This has changed now as CoinLoan is offering “Instant Loans” with 10% (for EURO loans) to borrowers and 8% interest to lenders through the “Interest Account”. This effectively eradicated the loan marketplace since basically all borrowers simply take the loans at 10% interest. Lenders can now expect to get the 8% interest of the Interest Account. So, this is a hassle-free investment option similar to Bondora Go&Grow.

You can check out the platform through this link.

Summary of my p2p loan portfolio in 2019

Long story short, my p2p loan portfolio in 2019 was very profitable and I managed to get through the year without any major losses. I will keep my eyes open to keep it this way in 2020.

The field of p2p investments keeps growing strongly and many platforms will at least double in size in 2020. This will not go smoothly all the time but I think that with the right information and the right decisions 2020 will be an even more successful year.

For 2020 I see an average monthly income of 550-600€ which should leave me with about 7000€profit by year’s end.

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