What is Mintos?
Mintos is a Peer-to-Peer platform based in Latvia and is currently the largest Peer-to-Peer lending platform in Europe, with nearly 3 billion Euros worth of loans funded since the creation of the platform. They currently have over 165.000 investors, coming from all over the world. They also reached profitability back in 2017, which is a very good sign for a Peer-to-Peer lending platform.
Mintos is actually a marketplace for loans, meaning that they are working with several loan originators to propose loans to the marketplace. They currently have 65 different loans originators, meaning that investors can diversify their investments in several countries, and also several loan types.
They also won several awards of the years, including the AltFi's "People's Choice Award" for three years in a row, and they have a very good rating of 4 stars over 5 on Trustpilot, meaning it's a platform that is really popular amongst its users.
What Returns Can I Expect From Mintos?
On their homepage, Mintos advertises a 12.26% average return for their investors. My personal return over the past years is currently at 12.04%, which is really close to the rate they advertise. I've also been investing in the platform since August 2015, and the returns have always been consistent. As for all my reviews, you will also find more details about my current returns with Mintos at the end of this article.
Is It Safe to Invest on Mintos?
As for all investments, investing in Mintos comes with a risk. However, there are many things that are included on Mintos to make sure that you only take a reduced amount of risk when investing on the platform.
The first thing I really like about Mintos on this side 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.
Also, 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. Therefore, you are sure as an investor to always get back the money that you invested. I actually invest only in loans that come with this buyback guarantee on Mintos, and I really recommend you do the same if you decided to invest in this platform.
Finally, as I already mentioned earlier, the fact that it is the largest platform in Europe & that they have some many loan originators means that it is really easy to have a very diversified portfolio on Mintos, reducing even more the level of risk on your investment.
Getting Started on Mintos
Getting started with Mintos is really simple. First, what you need to do is to open a free account on their website. This usually takes less than 5 minutes, including a step where they will ask you to verify your identity.
Once your account is created & verified, you can then browse loans that are available on the platform. The next step is then to deposit money on your account to start investing. This is also really easy to do, as they provide different bank accounts that you can use to make them a transfer, depending on which currency you want to use. I used TransferWise to make my deposits, and the money arrived on the platform & was ready to use in just one day.
As for all platforms I review, I tried to withdraw money from the platform as well. This went without any issues, and I had the money in my bank account in one day.
Setting Up the Auto-Invest Function
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. However, I recommend to quickly start using the auto-invest function, as it will allow you to completely automate your investments on the platform and have a truly passive investment. Here are the settings I am using for the interest rate & loan term:
Here were my general settings for the portfolio:
As you can see, I only invest in loans with a yield above 12%, and in short-term loans. It's not shown here, but I invest in loans from all countries, in the EUR currency, and of course only in loans that come with a buyback guarantee. I also invest the smallest amount possible in each loan (10 Euros). I’m really happy with those settings so far as it produced a decent average yield just a bit above 12%.
Mintos Invest & Access
Since I invested back in 2015, Mintos introduced a lot of new features, and the biggest one is called Invest & Access that they introduced in 2019. This is a new plan offered by Mintos, alongside the auto-invest function, that allows investors to not only have the platform invest automatically for them, but also allow people to withdraw money whenever they want, at no added costs. This is great if you fear that your money will be stuck for long periods of time when investing in Peer-to-Peer lending. They also advertise an average return of 11.94% if you invest this way, which is just slightly lower than the average return of the platform.
I haven't tested this feature yet as I love the level of control that I have with the auto-invest function, but I will definitely test this feature of Mintos in a close future and then update this review.
My Current Results With Mintos
Let’s now have a look at my current portfolio on Mintos. Note that I started investing on the platform around August 2015.
So far, I managed to get an annual return of 12.43% on my investments, calculated by the XIRR formula on the raw numbers given by the platform. This is a number that completely makes sense, as I mostly invested in loans with yields around 12%. I also received over 10,560 Euros in interests for all this period, so that’s not too bad! You can also see that I had only had a very small amount of defaults (2.25 Euros in more than 4 years). This is actually my fault, as once I invested in a couple of loans by mistake that didn't have a buyback guarantee, and one of those loans defaulted.
As for all platforms, I also like to know what the raw data is saying versus the information given by the platform. Let's now use that to have a look at the returns produced by my investment on Mintos since I started investing:
From this graph, you can see that I have a nice and constant raise of my income coming from Mintos, as I reinvest everything back in the platform. Overall, I can say that I still got very solid results from Mintos after these four years of investing on the platform. Of course, I will update this section regularly as I have more results coming from the platform.
Should You Invest on Mintos?
After now over four years of investing on the Mintos platform, I can say my experience with the platform has been great. It’s currently the biggest position in my Peer-to-Peer lending portfolio, and I love the fact that all the loans in this part of my portfolio are secured & comes with a buyback guarantee. They also constantly improve the platform by adding new features and new loan originators. I will definitely continue to invest on Mintos in the future, and I really recommend Mintos as this will be a very solid platform in any Peer-to-Peer lending portfolio.