I love to diversify my Peer-to-Peer lending investments on as many great platforms as possible. Mintos was the second Peer-to-Peer lending platform I ever invested on, and one year later it is time to make a detailed review of the platform & of my current Mintos Peer-to-Peer lending portfolio.
In this article, I will tell you what I think are the biggest strength of the platform, and what is the state of my current portfolio on the platform. I’ll also share the investing strategy that I am currently using on Mintos.
The Mintos Platform
Mintos is one of my favourite Peer-to-Peer lending platform, and that’s for three main reasons. Those reasons are actually summarised in the picture below, showing some of the available loans on the platform:
The first one is that Mintos is actually a marketplace for loans, so more than an usual Peer-to-Peer lending platform. Indeed, instead of accepting borrowers and listing their own loans, they are working with several loan originators, bring loans to the marketplace. This allows investors to diversify the investments in several countries, and also several loan types.
The other thing I really like about Mintos is that most of the loans on the marketplace are secured. This means that the borrower is attaching an asset (car, property, etc) with his/her loan application. For the investor, that means that even if the loan goes to default, the loan originator will actually engage a procedure to sell the asset and redistribute the money to investors, significantly lowering the potential loss after a default.
Finally, a lot of loans on Mintos also come with a buyback guarantee, usually with secured loans. This means that even if a loan defaults, the investor will be paid back by the loan originator, that will then handle all the money recovery process on their side. On Mintos, the buyback kicks in after 60 days late. This is for example the reason why I didn’t lose a single Euro on Mintos during the whole time I was investing there.
My Current Portfolio on Mintos
Let’s now have a look at my current portfolio on Mintos. This is the statement for the past year, at the date on which I really started to seriously invest on Mintos:
I received 829 Euros in interests during the past year, so that’s not too bad! Let’s now have a look at the overview of the account:
As you can see, I managed to get an annual return of 12.24% on my investments. This is smaller than on other platforms in Europe in Bondora, but here nearly all the loans I’ve invested in are secured loans & also have a buyback guarantee. You can also see that I had no defaults so far, and there is just one loan that is in the 60+ days late section and might default in the coming future.
Strategies I Used
Let’s now have a look at the strategies I used to invest on Mintos. At the start, as I always recommend, I was investing manually in loans to see what were the different parameters. Then, I quickly activated the auto-investing functions, with the following settings:
As you can see, I only invest in the most ‘safe’ loans, that are secured & come with a buyback guarantee. I also invest the smallest amount possible in each loan (10 Euros). You can also notice that I am using a maximum LTV (Loan-to-Value) of 70%, meaning that the loan never represents more than 70% of the asset the borrower attached to the loan. I might get slightly higher returns with a more aggressive approach, but I’m happy with those settings so far as it didn’t produce any money loss.
Conclusion on my Experience with Mintos so Far
After one year of investing on the Mintos platform, I can say my experience with the platform has been great. It’s now the second biggest position in my portfolio, and I love the fact that all the loans in this part of my portfolio are secured & comes with a buyback guarantee. I will definitely continue to invest on Mintos in the future, and I can’t wait to see them adding more loans originator in the future!
Are you also investing on Mintos or considering doing it? Don’t hesitate to share below!