Mintos is the second crowdlending platform I personally started investing in. In this review I will share my experiences based on the first 3 months investing with Mintos.
These are the topics that will be covered:
- What is Mintos?
- My Investments
- Becoming an investor
- Navigating the website
- Pros and Cons
On the the review, shall we?
What is Mintos?
Mintos is the largest p2p lending platform in Europe and is based out of Latvia. The platform was founded in 2015.
A few key figures to get us started:
- 134,335 investors from 72 countries
- Over 2 billion in capital raised
- 11.82% average net annual return
- 59 employees
- 58 loan originators
- Revenue of 4,6 million in 2018
- Net profit of 13,000 in 2018
Based on the key figures it’s immediately obvious Mintos is incredibly popular. And it’s easy to understand why. Some of the main advantages of Mintos are their proven track record, their loan volume, the ease of diversification, the auto invest function, the enormous secondary market and all of that combined with market conform returns. The majority of loans come with a buyback guarantee as well.
Mintos’s popularity is also confirmed by the fact the platform has won the AltFi People’s choice award for the third year in a row.
My Mintos Investments
I became an investor with Mintos in February 2019 by investing € 1,000. Shortly after I made a second deposit, for € 2,000 this time. At the time of writing this review I still have € 3,000 invested with Mintos.
The minimum investment is € 10 and no additional fees to investors are being charged.
My net annual return of 11.65% is slightly below the returns Mintos has reported. I’m expecting to slowly increase my returns, upwards of 12%. It always takes a bit of time for compounding to take effect. Currently the interest rates of my investments range from 11% to 14.5%.
Find out more about my current Mintos portfolio here.
Becoming a Mintos investor
Becoming an investor with Mintos is fairly easy. It starts with entering your email address and several personal details.
Anyone who meets the following criteria can become an investor:
- Over 18 years old
- Own a bank account in the European Union or third countries currently considered to have AML/CFT systems equivalent to the EU
- Identity succesfully verified by Mintos
Navigating the Mintos website
The website is fairly easy to navigate, but let’s run through the basics.
The main menu consists of six options:
- Loan Listings
- Auto Invest
- Account Statement
- My Investments
- Deposit / Withdraw / FX
Let’s navigate the website together by going over the menus one by one.
The Overview page is the landing page and provides a dashboard of your portfolio. Every bracket under My Investments is a link which leads to the individual loans invested in.
The Loan Listings Menu leads to an overview of the Primary Market, the Secondary Market and further information on loan originators, including a rating system. As displayed below the primary market currently has 410k loans listed and the secondary market another 278k. The loan volume is by far the largest of any European platform.
The primary market and secondary market loan lists allow you to invest manually and the filter pane on the left combined with the bars in blue at the top. Typical criteria are interest rate, term, buyback guarantee and rating.
Primary Market (410.427) and Secondary Market (277.871) loan availability.
Mintos has developed a rating system for their loan originators ranging from A to D. Loan originators rated A are low risk, B moderate risk, C elevated risk and D means a loan originator is in default. Based on your risk appetite you can choose which loan originators to invest in.
The Mintos rating system ranging from A to D.
It’s crucial to understand that loans with a buyback guarantee are guaranteed by the loan originator, not Mintos. Your investment is at risk in case a loan originator goes out of business. Mintos does not guarantee your investment in such an event. They will act and aim to mitigate investor loss as much as possible.
It has happened once a Mintos loan originator has gone bankrupt: in 2017 EUROCENT were suspended from Mintos and in 2018 EUROCENT has been legally declared bankrupt.
Under Loan Originators you’ll find more details of individual loan originators including their Mintos rating, loan portfolio and whether the loan originator pays interest on delayed payments. More on this later when Auto Invest is discussed.
Loan Originators information including rating, loan portfolio, skin in the game and average net annual return.
The Auto Invest menu allows you to set up and prioritize your custom auto invest strategies or select a pre-defined investment strategy. I suggest setting up your custom strategies. It’s possible to set up auto invest strategies for the primary and secondary market.
Criteria I typically include in my auto invest settings:
- Currency EUR
- Mintos Rating of B or higher
- With a buyback guarantee
- Minimum interest rate varies
- Maximum term varies
- Maximum invest per loan of € 20.00
- Re-invest returns
- Exclude loans already invested in
- Diversification preferences
- Only select loan originators which pay interest on late payments
It’s a reality a portion of your consumer loans will be paid late and it’s no different at Mintos. Only choosing loan originators whom pay interest on late payments avoids your funds not generating returns for up to 60 days.
The Loan Originators menu that provides details about whether interest on delayed payments is being paid.
The Account Statement menu allows you to generate your account statement. There are pre-defined date filters, but there’s also an option available to manually decide your time frame.
My account statement for April 2019.
My Investments shows statistics on your finished and current investments. It provides details on interest rate, remaining term, loan type, country, loan originator, buyback guarantee and status. This is the view I use to reflect on how well diversified my portfolio is.
The menu also allows you to look into every individual loan in your portfolio.
Statistics to reflect on your portfolio are available under My Investments.
Example of an individual loans and the iInformation that’s available for investors.
Deposit / Withdraw / FX
The Deposit / Withdraw / FX menu allows you to deposit, withdraw or convert your funds for a different currency. FX becomes relevant if you’re looking to invest in currencies other then your default currency. Converting your funds comes at a price. The fee is 0.2% up to 2% depending on the currency you’re converting to.
The highest interest rates availabe currently are loans in ruble (RUB) with an interest rate of 19.1%. So far I’ve only invested in EUR loans.
When exchanging EUR for RUB Mintos charges a 0.7% exchange fee. Different fees apply for different currencies.
- Mintos has a proven track record
- Largest European P2P platform
- Large loan supply
- Majority of loans with buy back guarantee
- Active secondary market
- Market conform returns
- Auto invest available
- Easy to diversify your portfolio
- Difficult to assess risk for all loan originators
- Lower returns than some newer competitors
Mintos is a platform that should be part of everyones portfolio. It’s the first platform I’d recommend for a new investor. The list of pros mentioned above is extensive and immediately explains why Mintos is such a popular platform. I typically spend about an hour or two per month maintaining my account.
My Mintos rating is 4/5.
If you’re considering becoming an investoring with Mintos I’d suggest you sign up through this affiliate link. The affiliate link provides you with a 1% cash back bonus for 90 days and it’ll help me run this blog. You will not receive this bonus when signing up on the Mintos website. Win win.
Share your experience
Are you an investor with Mintos? Please share your experience in the comments below.