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.
Mintos Review People's Choice Awards
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.
Mintos review - How Mintos works
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.
Mintos review portfolio overview
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.
Registered investors Mintos
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%.
Buyback guarantee
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.
