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 in, and now three years later it is time to make a detailed review of the platform & show you the current state of my Mintos Peer-to-Peer lending portfolio.
In this article, I will tell you what I think are the biggest strengths 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 favorite Peer-to-Peer lending platforms, 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 a 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. Therefore, you are sure as an investor to always get back the money that you invested.
My Current Portfolio on Mintos (Updated 2018)
Let’s now have a look at my current portfolio on Mintos. This is the statement since August 2015, at the date on which I really started to seriously invest on Mintos:
I received 5681.90 Euros in interests for all this period, 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 12.29% on my investments. This is a number that completely makes sense, as I mostly invested in loans with yields around 12%. You can also see that I had only had a very small amount of defaults (2.25 Euros in more than 3 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.
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 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 didn’t produce any money loss (thanks to the buyback guarantee) and produced a decent average yield just a bit above 12%.
Conclusion on my Experience with Mintos so Far
After now over three years of investing on the Mintos platform, I can say my experience with the platform has been great. It’s now 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. I will definitely continue to invest on the Mintos platform in the future, and I really recommend you do the same if you want to build a solid Peer-to-Peer lending portfolio.
Are you also investing on Mintos or considering doing it? Don’t hesitate to share below!