Mintos Review

Mintos Key Facts:

Interest rates from 5% to 19%

Buyback Guarantee on most loans

High investment diversification possible

Investments in various currencies available

Loan durations from a few days to several years

Primary and secondary loan market available

 

updated April 4th 2019

My experience with Mintos

Mintos was the second p2p platform that I started investing in and it is still my favorite one. By now, it has turned into the biggest provider of p2p investments in the world and won several People’s Choice Awards for the most popular fintech company.  It is based in Riga, Latvia but has recently opened an office in Berlin as well.

Strictly speaking, Mintos is not really a p2p platform since you don’t invest directly into some loan. Instead, Mintos serves as a middleman between you and the so called loan originators which are independent companies that provide the loans to the credit takers. So, there’s additional player between the investor and the credit taker which is why it’s not a direct p2p investment. These loan originators list their active loans on the Mintos platform and you can invest in those loans which essentially refinances the loan originator. In return, the loan originator offers you a certain interest rate.

Source: www.mintos.com

The great thing about Mintos is that most loan originators offer a Buyback Guarantee which kicks in when repayment of the loan becomes more than 60 days overdue. In this case, the loan originator will pay you back the remaining invested principal amount and all interest that has accrued. This gives a good amount of security for the investors.

The Buyback Guarantee is financed by the much higher interest rates that the loan originators charge to their customers (this value is usually listed as well in the loan information on Mintos, so there’s good transparency). At the time of writing, Mintos hosts 60 loan originators which let you invest into loans in 29 countries across Europe, Asia and Africa.

Investing on Mintos is easy: after opening your investor’s account you can transfer funds to your account by bank transfer or through alternative money transfer providers like Trustly. Withdrawing money to your bank account is just as easy. Keep in mind that you need to validate your account by providing a photos of your ID card or passport and a photo of yourself holding up your ID/passport next to your face before you can withdraw funds.

Mintos Deposit/Withdraw/FX
Mintos Deposit/Withdraw/FX: Here you can choose how to make deposits and cash withdrawals. The foreign currency exchange service is also available here.

The major share of available investments is in Euro but you can also invest in loans in GBP, Danish Krone, Russian Rubel and other currencies. Mintos offers an on-site currency exchange service. The minimum amount for investments in Euro is 10 Euro and a corresponding amount applies to the other currencies as well.

All available loans are listed in the Loan Listings section:

Mintos Loan Listings
Mintos Loan Listings: In the left hand side column are all the attributes for filtering the loans by loan type, loan originator etc. Desired interest rates and loan duration are quickly adjusted with the 2 sliders on top. Preferred filter settings can be saved under My Filters.
Mintos Secondary Market
Mintos Secondary Market listings: here you can buy loans from other investors on Mintos. The settings are essentially the same as on the primary market but the interest rate is replaced by Yield to Maturity (YTM) since loans can be bought with discounts or premiums which affect the effective return on investment.

By setting Auto Invest strategies (for which you choose e.g. the loan originators and loan types you want to invest in) you can fully automate your investments. This can be done for Primary and Secondary Market loans. Despite the Buyback Guarantee it is still a good idea to minimize your risk which is typically done by diversifying across many loan originators. More on my risk management strategies on Mintos in the Tips&Tricks section. I recommend to set up your own custom strategy and to exclude loan originators with poor ratings.

Mintos Auto Invest Settings 1
Mintos Auto Invest Settings: choose the loan originators you want to invest in. Personally, I don’t care about the detailed settings for each loan originator. Most important for me is that they have a good rating and offer a Buyback Guarantee.
Mintos Auto Invest Settings 2
Mintos Auto Invest Settings: Here you can adjust the interest rate range and the loan duration. After setting name, portfolio size and loan size you can save and activate. Make sure to set the Diversify across loan originators setting to Yes if you want to invest in more than one loan originator.

All loans that you have bought are listed under the My Investments tab. Here you can also select loans that you want to sell on the secondary market. This section further gives you some basic statistics of your portfolio like average interest rate, loan duration, portfolio structure and so on.

Mintos My Investments
Mintos My Investments: all you need to know about your portfolio. Select loans and click Sell to place them on the secondary market.

Last not least, there’s the Overview section which greets you every time you log into your account. It gives you the most important facts about your investments like your account balance, overall profit and the status of your loans.

Mintos Dashboard
Mintos Dashboard: the key facts about aout investment account.

Despite the lengthy explanations above, investing on Mintos is easy and straightforward. Once you have set your Auto Invest strategy it will do its magic and you can lean back and watch your profits grow. If you don’t want to concern yourself with these settings you can also choose one of Mintos’ preset investment strategies (short term, diversified or secured) which will however tend to give you less profit than a custom strategy.

If you’d like to give Mintos a try you can open an account through this link and you’ll receive 1% cashback on all funds that you invest in the first 90 days after opening the account. That’s already more interest than any bank is currently offering per year. The cashback is paid in monthly installments based on what you invested in the previous 30 days.