Mintos Review & BONUS

• Consumer loans: mortgage, cars, short-term, personal
• Business loans: invoice financing, business, agricultural

Investments are available across Worldwide countries,  in multiple currencies (e.g. EUR, USD, GBP) and the platforms accept investors from most of the countries. Even investors from United-States (USA) can invest in this European p2p lending platform.

The image below shows the constant progress of the amount under the management of this platform.

How it works:

• Borrowers apply for a loan to one of the loan originators present on Mintos
• The loan originators evaluate the risk of each application, define an interest rate and lend money from their own funds to the borrower.
• The loans are then listed on the Mintos marketplace, where investors can find general information  such as loan details (e.g. ROI, term, amount)
• Investors select loans on the marketplace, select the investment amount
• The platform provides monthly interests to the investor and returns the invested amount to the investor at loan term

Performances:

This p2p lending platform provides loans generating an average of 11% ROI and proposes investments with a term from 1 day to more than 5 years.

Usually, if you invest in short term loans (< 30 days) interests are provided at end of the investment term and if you invest in long term loans (multiple months) you will receive interests and part of your invested amount (principal amount) every month.

In addition, most of the loans come with a BuyBack guarantee feature, meaning that the peer to peer lending platform will pay back the investment to the investor if the borrower defaults to pay (on this platform it happens after 60 days).

Safety:

Here are the factors that give safety to this p2p lending platform:

• It is the biggest European crowdlending platforms with more than € 3.3 billion investments under management
• Its growth has been funded by more than € 7 million from a venture capital fund of Latvia
• The financial reports of the platform (of 2017 and 2018) show that it is profitable.
• Loan originators have skin in the game of 5 to 20% (10% on average)

Also, this platform statistics show us that if we invest without BuyBack, the average investments default rate is 0.1% which is pretty low. And that the investments types with the biggest default rate are: Invoicing Financing. Business Loans and Mortage Loans.

When investing with Mintos multiple information are provided. Below are explained the relevant or complex ones.

Loan Details

• Loan Type: in this case, it’s a short-term loan. It’s a consumer loan usually for less than 30 days
• Effective APR: it’s the overload of fees + interests charged to the borrower during the loan term. In our case, the 182.7% APR of this 30-day loan means that the borrower is charged of 82.7% on his loan during the term of 30 days. It’s ideal to find the smallest APR as possible.
• Investment rate: it’s the yearly rate of return that then needs to be reported to the loan term. In this case, the 13% ROI over the 30-day term means that it will return 1.07% over 30 days (=13%*(30/365))
• Loan To Value (LTV): it’s the ratio between the loan size and the purchased asset size. For example, if the LTV is 50%, it means that the loan represents 50% of the value of the asset purchased.
• Amortization Method: it explains how the principal invested amount is paid to the investor. In our case of “Full” it means that the invested amount is repaid at the end of the term.

Investment Breakdown

• Skin in the game: it’s the amount that the loan originator invest in the loans mandatorily (here 10%). Most of the originators invest from 5% to 15% depending on their risk profile determined by Mintos. It can be used as an indicator of level of originator risk.
• Share: the share invested by the loan originator (in this case they invested 25% of the total amount)
• Investors: display the number of investors (in this case 9) and the amount invested by them in the loan

Loan Originator Details

• Loan Originator: The name of the company (“loan originator”) that provided the loan to the borrower is displayed. Investors can click on it to have additional information.

Below you will find the resulting forecast when investing using Mintos compared to investing the same amount in the US stock market (US stock market: 6% average yearly growth in the last 30 years).

By investing €1’000 using Mintos for 15 years you might end up with €4’785 (€2’388 more than with the stock market).