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Mintos Review (Updated December 2019)

Mintos Review (Updated December 2019)

Last Update: / by Marco Schwartz

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 over four 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 how to get started on the platform, and the investment strategy that I am currently using on Mintos.

Mintos
My Overall Rating
My Average Yield
12.43%
Investment Protection
What I Liked
Buyback guarantee on most of the loans
Huge amount of loans available
Really easy to diversify
Auto-invest function
Secondary market
What I Didn't Like
Auto-invest function sometimes slow to react

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.

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:

Mintos Review (Updated December 2019)

Here were my general settings for the portfolio:

Mintos Review (Updated December 2019)

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:

Mintos Review (Updated December 2019)

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.

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Mo 2 months ago
I recently joined and tried to duplicate your strategy to see how it works. The result is 0 loans. Can you please explain this?
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Marco Schwartz Mo 2 months ago

Sure, currently there are loans with a bit lower interest rate on Mintos compared to when I started to invest, which explains that there is 0 loans when using the same settings. I recommend putting a minimum of 10.5% for the interest rates.

Sixnot Mo 2 months ago
The situation on Mintos have changed quite rapidly over the past 2 month. It has become much harder to achieve reasonable returns. The key reasons is that the speed of new capital (mainly due to more and more investors coming to the platform every month) is exceeding the amount of solid loans available. It is getting difficult to find loans even using Auto Invest. If you use Manual - forget it, by the time you get to a solid loan to invest in, it will be gone. This pushes the interest paid by the Loan Originators down (excess of demand versus supply). This is accelerated by the buyback option the Loan Originators have. They basically pay the loan back to you and immediately put it back on the platform with lower interest (this practice is rather unfair, but what can you do). This creates a massive downward spiral. After almost 3 years on Mintos I am divesting my funds as the risk/benefit ratio does not work for me anymore. It might improve but I am rather a pessimist here. As long as the LOs have buyback option to push the interests down whenever the situation suits them and the capital inflow continues I cannot see a light at the end of the tunnel. Perhaps a couple of LOs crashes would help to reset the game. Otherwise Mintos might eventually become a victim of its own success...
Alfredo Almeida 5 months ago
What loans originator do you have? i guess the better are: Mogo, Credit Star, Credius, ID Finance, Vizia/Banknote and iute Credit.
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Marco Schwartz Alfredo Almeida 4 months ago

Hi Alfredo, I invest in most of the originators for diversification purposes. Basically all of those that accept EUR investments & that have a buyback guarantee.

dusan 10 months ago
Can anybody calculate their actual XIRR on Mintos, my dashboard is showing 9.51 %, yet when I calculate it in excel it is just 7.51%.
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DiMi dusan 9 months ago
XIRR=8,64%
Gianni 10 months ago
@Jack: the loan origintors earn the real money with the loans being overdue. Anyone compared the interest rate calculated on mintos with the real interest they have received??
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Walter 10 months ago
Hi Marco, I noticed that you didn't use the option "diversify across loan originators". I did the same at th beginning (big mistake!) and the result was more than 80% of my money invested in a single originator. I guess your situation must be similar... aren't you worried about this?
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Marco Schwartz Walter 10 months ago

Hi Walter, I guess it depends how you selected the other criteria. I have quite tight criteria for my loans, therefore I end up anyway in only a few originators available, so I guess the option wouldn't change a lot for me. But indeed I agree with you, if someone has quite wide criterias they should definitely check the box.

Vedran Semenski 10 months ago
There is much talk about a financial crisis that is coming in the next few years. Do you have any advice or strategy on how to prepare for that? I am strictly asking about investments in P2P lending platforms like Mintos, Twino...? What do you think will happen with P2P lending platforms and investors in case of a financial crisis?
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Marco Schwartz Vedran Semenski 10 months ago

What I usually answer to that is that the crisis should happen every year if you listen to some people :) Joke aside, my answer to that is diversification. P2P lending should not be your only investment, and also you should diversify across many platforms, loan types & countries.  

Vedran Semenski 10 months ago
I have been making some statistics over the past year and have seen a dip in return rate in the second part of 2018. What is your experience with return rate over the years. Can you maybe share some insights into that?
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Marco Schwartz Vedran Semenski 10 months ago

Indeed there was a drop at some point of the available loans on Mintos with interests rates > 12%, I noticed it too. Now it's back to normal as I can see :)

Ash 10 months ago
@Marco Schwartz - it's interesting that you didn't lose anything when Eurocent crashed. How is possible?
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Marco Schwartz Ash 10 months ago

A bit of luck on this one I have to admit - I only had one of their loans in my portfolio :)

Lotus Eater 10 months ago
Hi Marco, This was a good effort on the review, but can I suggest you look at the reviews below? They are similar but seem a bit more in-depth. Perhaps you could learn a bit from the format? https://obviousinvestor.com/mintos-review/ has a good review and publishes actual results month by month in GBP investments. https://financiallyfree.eu/ does the same in EUR https://www.financialthing.com/mintos-review-2/ has a good review in GBP but doesn't publish actual results.
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Dimitar 10 months ago
Hi Marco, could you comment on Jack's comment. The topic is very interesting.
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Kasper Kristensen a year ago
Why did you tick off "Diversify across loan originators"?
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Vedran Semenski Kasper Kristensen 10 months ago
That setting is one of the "BAD" or un-intuitive parts of the Auto Invest feature. It forces the portfolio to be completely diversified. This means that in case you chose 20 loan originators, the amount of money needs to be spread completely evenly across all loan originators. This is useful in case you are creating a portfolio that targets a few selected loan originators. It is not useful and "un-intuitive" whey you are not targeting a few loan originators and simply want to target a interest rate or duration/term range. What happens is because it requires to have the loan completely diversified, in case 1 loan originator does not have a loan available for the conditions you specify, the portfolio will not grow at all or grow to only 1 loan per loan originator (minus the one that does not have that kind of loan). I tried using the setting a few times but it requires daily or weekly checkups in order to maintain it. The market on mintos changes frequently. One loan originator can have short and long term loans one week and only long term loans the week after. In case you do not maintain this list of originators your funds will not be invested, your portfolio will be empty and returns will be low or non existing. I really hope Mintos invests some time and improves the Auto Invest part.