Not Your First-Choice P2P Platform
The first impression of Mintos P2P Platform is that it’s focused on quantity rather than quality.
In November 2018, Mintos has 56 different lenders. They offer loans originating from 27 countries. There are 8 different types of loans to invest in. Even if most loans are in Euro (EUR), there are also several currencies available depending on the country you are investing in.
The complexity of Mintos platform makes it less ideal for your first investments in P2P loans.
But as you become more familiar with P2P lending in general, Mintos can prove to offer much more than other platforms. You just have to do a bit more homework – and do it well. With our first investments, more than 15% of the borrowers failed to keep their repayment schedule, which is more than market average. When this happens, you must wait 60 days before the buy-back feature kicks in.
Risk Ratings and Risks on the Mintos Platform
Mintos offers risk ratings for its loan originators. The ratings are on a scale from A+ to D, where D represents the highest risk. It may be a good idea to stick to loan originators with a high rating (A+ to B+), at least to start with.
Even with the ratings, you should do your own quality research. Try to get as much information as you can about each loan originator you want to use.
You should also make sure each lender offers a Buyback Guarantee. Remember, not all loans on Mintos have this guarantee.
What is Mintos' Buyback Guarantee?
The Buyback Guarantee is given by the loan originator, not Mintos. The guarantee applies on the individual loan level. If a borrower fails to pay back a loan and repayments are delayed for more than 60 days, the loan originator will step in. You will get back the invested principal and even the interest earned.
The guarantee is not foolproof. Even when a loan is backed up with a Buyback Guarantee, there is a risk that you can lose your money. If small loan originators with many bad debts end up in bankruptcy, the Buyback Guarantee isn’t worth much.
This 2017 article lists some of the lenders that you might want to take a second look at before investing: 9 lenders on the Mintos platform that we would not touch right now.
You should also know that one lender on Mintos platform, Polish Eurocent, went bankrupt in 2018. Read more about Eurocent on blog.mintos.com
Mintos is, however, not less safe than any other platform.
How to Use Auo-Invest on Mintos P2P Platform
Like most platforms, Mintos have an “Auto-Invest” feature so you don’t have to select loans manually every time your account has cash available.
The auto-invest service helps you create diversity between different lenders, countries, and type of loans.
It automatically invests in new loans when money is available and always based on the criteria you have set up.
Before finalizing an auto-invest portfolio, manually check that there are loans available that match your criteria and that they are the type of loans you want to invest in. Once your auto-invest portfolio is active, money is withdrawn from your account almost instantly.
Settings of loan term and interest rate come with a preview of available loans matching your criteria. There is also a box showing the number of available loans matching all your criteria! It’s a very useful feature on Mintos (see below).
Know This about Currencies
If you want to invest in different currencies, you use Mintos’ currency converter and make sure there are money available in all the currencies you want to use. Mintos P2P Platform use a mid-market rate to exchange your money from one currency to the other. The mid-market rate is considered the fairest exchange rate and can be found on independent sources such as Google and Reuters. There may be a very low fee connected to this service and it is displayed upfront before conversion.
The rate for a different currency may go up or down. When converting back to your own currency, you may lose some of your profit or you may gain some.
Mintos is based in Riga, Latvia, with an bank account in Estonia, which means that you normally add funds to your Mintos account in Euro. If your own currency isn’t Euro and you transfer funds from a bank, you may end up with a cost for the exchange to and from Euro when you deposit and withdraw funds. It may significantly lower your profit from any loans.
Explore your options carefully.
Open to Investors from Outside EEA
It is convenient to use SEPA money transfers from bank accounts or payment services in the European Economic Area to Mintos.
SEPA can also be used by investors in Australia, Brazil, Republic of South Africa, Hong Kong, India, Japan, Canada, South Korea, Mexico, Singapore and Switzerland.
If you are a citizen or resident in United States, you cannot use Mintos P2P Platform. Registration is currently denied.
What Others Say
Mintos has recently dropped from Excellent to Great on Trustpilot (November 2018). The Trust Score is 8.9/10, which is very good.
People with negative reviews usually complain about low profit due to bad debts or not finding the type of loans they want.
What We Say
While Mintos P2P Platform is very easy to use, the complexity of loans and loan originators makes it less ideal for newbies in the P2P investment business. It is easy to make mistakes when setting up auto-invest criteria.
For the experienced investor Mintos P2P Platform offers tons of possibilities and it may very well be the only investment platform you need.
Pros – What We Like
- Many available loans – Easy to create diversity on your investments
- An easy-to-use currency converter for investments in many currencies
- Main overview (your first page) shows late and defaulted loans
- Account statement can be created based on any time period
- Support answer received in less than 1 hour
- Tax reports and tax information available
- Risk ratings (loan originators) helps picking the right lenders
- Auto-invest settings with a preview of available loans matching interest rate and loan term
- Number of previous successful repayments on current loans is immediately available
Cons – What We Don’t Like
- Sorting function on current investments not intuitive
- No search function for additional information, unless you go to the blog