Mintos Review: in this post we will learn more about of the most popular peer 2 peer lending platforms currently available
Are you considering investing in peer-to-peer lending? Learn more below in our Mintos review, one of the leading peer to peer lending market places in Europe.
Mintos Review: What is Peer to Peer Lending?
Peer to peer lending is a relatively new concept that has gained popularity during the past few years. In this type of investment, individuals or companies lend money to other individual or companies in return for an interest back when the loan is paid back in installments.
One of the most interesting aspects of peer to peer lending platforms like Mintos is that you can invest in multiple loans at the same time. If you deposit 1000 in Mintos for example, you can loan that fractions of that money to multiple borrowers, from different countries and in different types of loans.
What is Mintos and How Does it Work?
Mintos is a peer to peer lending marketplace founded in Riga, Latvia in 2015, with the promise of connecting loan originators to investors. Mintos is also one of the fastest growing companies in the sector. The company has earned a number of prizes from AltFi and is was also an European Fintech Nominee.
As of 2018 and according to an article on AltFi “Mintos currently is the leading player in the peer-to-peer lending market in continental Europe with 39% of market share.”
The company functions in a way that helps investors to have a reliable income from loans interest rates, and is, at the same time, attractive for loan originators to capitalize.
As an investor on Mintos, you will basically deposit money on the marketplace, invest in the loans of your choice, and earn interest rate as the loan installments are paid back.
Advantages of Investing using Mintos
That concept of peer to peer lending is altogether very interesting. Users can diversify their portfolios and invest in sectors which would otherwise require higher sums and possibly dealing with much more bureaucracy.
Another advantage in which Mintos is one of the best on the peer to peer market is the availability of loans. Both in terms of geographic locations as well as type of loans Mintos offers a huge selection of loans to invest in.
Some of the markets in which you can loan money to using Mintos are: Armenia, Denmark, Moldova, Spain, Sweden, Georgia, Latvia, Zambia and many others. As you can see, you can invest in loans in a high number of countries, the possibilities inside the Mintos platform are really flexible.
Types of Loans
One of the most important aspects of every peer to peer platform is, in my opinion, the types of loans they offer. At the time that this Mintos review was published, the company offered the following types of loans to invest:
Invoice Financing: this is probably my favorite type of investment in peer 2 peer platforms. You can learn more about how it works in this article about invoice financing.
Apart from invoice finance loans, Mintos has a wide range of types of loans. Some of them are: agricultural loans, business loans, car loans, personal loans, pawn-broking loans, short-term loans and a few others.
How to Open an Account in Mintos?
Opening an account with Mintos is a pretty straightforward procedure. Once you open the account you have to deposit funds. There are different options depending on the currency you want to deposit, and in most cases Transferwise is also available.
Mintos Sign Up Bonus
If you use the links in this post to sign-up for Mintos you will get 0.5% of the total invested in the first 90 days on the platform. It is another great incentive to start using Mintos and the company has a number of ways to maximize your income, like loan cashbacks as well.
There are also other options depending on the currency you want to deposit. For example if you want to deposit in PLN you have the option to do a domestic bank transfer in Poland. Regardless of the currency you choose to deposit there are pretty convenient options, and the most convenient in my opinion which is Transferwise. Once the money is available on your Mintos account you can start lending it to different loans.
Mintos Auto Invest
Another useful resource available on Mintos is the auto invest function. As the name says, it is a feature that will automate your investment strategy and reduce your “administrative work” of searching suitable loans.
The best aspect of the Auto Invest feature is that you can set the parameters for this feature to choose loans. In fact, Mintos offers some ready made strategies, but you can also make your custom strategy for the loan parameters.
Some of the parameters you can choose while auto investing are loan type, loan originator, country, buyback guarantee and others. You can also set it to invest only in loans in a given range of interest percentage.
How Much Can I Earn on Mintos?
The most asked question regarding any type of investment is how much can you earn from it and with Mintos it is not different. The interest earned on loans on Mintos will depend on the type of loan, the currency and the country in which it was issued.
Another important aspect you should consider is how much taxes you will pay while using Mintos. This will entirely depend on which country you are a tax resident, and what is the tax percentage in your country for this type of investment.
From my experience, there is a good range of loans with an annual gross interest rate between 10% and 13%. At the time of this publication, there were loans available with interest rates from 5% to as high as 18%.
Loans with Buyback Guarantee
Some loans in Mintos have a buyback guarantee, which I think is an excellent feature especially if you are a risk adverse investor. If your loan has a buyback guarantee and the borrower fails to pay in a delay above 60 days, the loan originator buys back the loan from the investors with the interested earned over time.
There are various loan originators offering loans with the buyback guarantee. In fact if you want to set all your portfolio of invested loans in loans with buyback guarantee you can do it, the options are really vast.
Who Can Invest in Mintos? Is Mintos Available for International Investors
There are some requirements for users to be able to use Mintos, mostly depending on where you are a tax resident and where your bank account is located. Basically anyone with a bank account in the European Union can invest in Mintos. If you are from a number of countries outside the European Union you can also invest in Mintos as long as your country has have AML/CFT systems equivalent to the EU.
Both individuals and companies are eligible to invest in Mintos.
One of the best aspects of investing with Mintos is that there are no fees to use the platform. There are no such things as a subscription price, neither withdraw or deposit fees.
Is Mintos Safe? Is Mintos Legit?
Mintos is definitely safe and legit. It is currently one of the biggest peer 2 peer platforms in Europe, both in terms of investors as well as in terms of loan originators. If you want to minimize your risks with investing on Mintos you can also prioritize loans with a buy back guarantee.
Another important aspect I consider whenever I am using a new online service is their support availability and reliability. In the specific case of Mintos I have to say they have one of the best support among all online services I currently use.
Apart from the typical email support, Mintos also offers phone support in a number of countries and languages. Especially for financial services, I believe a direct line of contact with the service is crucial to build trust and reassure the user of its reliability.
- Widest variety of loan and loans originators.
- Highly advanced auto invest tool.
- Opportunity to invest in loans in Europe but also in some Asian and African countries.
- Buyback guarantee is available, but not to all loans.
My overall Mintos Review verdict is extremely positive. In fact, I wish that there were more peer to peer lending platforms and diverse, flexible and reliable as Mintos. It is an excellent platform if you want to get started with p2p lending, and it offers so many investing opportunities that you will feel like spending hours searching for the types of loans that suit better to your investment strategy.
Other P2P Lending and Investment Resources
If you are considering investing in Mintos you might want to check some of our other guides to peer to peer investing. Check our post on the best peer 2 peer lending platforms in Europe, and the best real estate crowdfunding platforms in Europe.
Are you already investing in Mintos or considering to do so? What is your profile of investing? What do you think about peer to peer platforms? Would you add anything t this Mintos review? Leave your thoughts and questions in the comment box below.