Mintos Review

Summary

• Mintos is a P2P Lending platform. 
• Allows users to invest in loans from various providers, reducing loan provider risk
• Double digit returns - My return was 13.15% as at 07/07/2018
• Click here to register and start investing

Get started - How to set up your account

1. Click here to register for an investment account

2. Add the code "XCMN6L" in the promo code box. You will get a 1% bonus on the funds you invest within your first 90 days!

3. Make a bank transfer to top-up your account. Mintos keeps separate bank accounts for each currency, so ensure that the bank transfer you make is in the correct account depending on the currency you want to invest in. You can use Transferwise, Revolut or other online banks to minimise the bank transfer fees. It is important to include your investor number in the description of the bank transfers you make, as Mintos will process your top-ups much faster.

4. It will take approximately 3 working days for Mintos to top-up your account.

5. After receiving the funds, you can start investing. There are two markets in the Mintos; the primary and secondary. In the primary market, you can buy loans directly from loan providers, while in the secondary, you can buy loans from other investors, at either a discount or premium.

Tips

• ALWAYS invest in buyback guarantee loans. Buyback guarantee loans have essentially no credit risk, as the loan originator will buy back the loan you have invested in and pay the interest on behalf of the lender. Thus, you still get the principal and interest earned if the lender delays repaying the loan by more than 60 days.

• Invest in loans with short maturity dates. I try to invest 60% of my funds in loans maturing between 3-7 months and the remaining 40% in shorter than 3 months.
• Use auto invest portfolios. By using auto invest portfolios, interest and principal repayments are reinvested automatically on the same day, ensuring cash are not left reinvested. It also reduces significantly the times you have to check your account.
• Diversify by
• Investing €10 to €20 (or other currency equivalent) on each loan
• Using various loan providers
• Investing in loans from different countries (loans denominated in the same currency as your though!)
• Various loan types, such as business, personal, car loans and so on

Recommended strategy to follow

My strategy, leading to 13% annual return is:

• I use 2 auto invest portfolios, both which invest only in buyback guarantee loans
• My higher risk portfolio includes loans from higher risk loan providers, which offer higher returns, from 12.5% up to 14.5% and mature in less than 3 months. Such loan providers include Bino, Sebo, Varks, Kuki.pl and Metrokredit.
• My lower risk portfolio invests in loans starting with over 11% return which mature in less than 7 months. Low risk loan providers include Mogo, Banknote, Aforti, Creditstar, and ID Finance.

• Take advantage of offers. Some loan providers offer cashback rewards when you invest in their loans. Mintos emails and lists all offers in their website, so make sure you read your emails! For example, a few months ago, a loan provider offered 1% cashback for investing in their loans maturing within 1 year and 5% for their loans maturing in 5 years. I of course took the opportunity and invested in their 1 year loans, getting 1% fo my investment back within a few days!
• Use the secondary market to buy loans on discount. I use the filters to search for buyback guarantee loans, maturing within 12 months with high returns and on discount. Hence, leading to higher returns!

Review

1. Reward ★★★★★

My annual return exceeds 13%, thus returns from Mintos are really high.

2. Risk ★★★★☆

I invest in loans with guaranteed buybacks, from several loan providers which are diversified geographically. Thus, reducing risk significantly!

3. Availability ★★★★★

Mintos is available worldwide, in all major currencies.

4. Minimum investment ★★★★★

The minimum investment is €10 or other currency equivalent. Hence, anyone can invest!

5. Functionality ★★★★☆

Mintos is designed really well and is easy to use. 

I really like the auto invest function, as funds are reinvested on their own. Therefore, I do not have to worry about visiting their website daily to ensure that my funds are always invested!