Mintos Review: My P2P Investing Returns with Peer-to-Peer Lending Mintos

Mintos Review - My P2P Investing Returns with Peer-to-Peer Lending Mintos
My Review on Mintos P2P Platform
  • Invested in Mintos - €5 000
  • Self-reported returns - 12.04%
  • Passive earnings per month - €80
  • Investing time on Mintos - 13 months
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My Mintos Overview:

If you read the whole review, you will sense that I am delighted with my investments in Mintos so far. The returns have been stable, and the platform is super sound. With Mintos, I really have the vibe that my investments are safe (as safe an investment could be).

For both new and experienced investors, Mintos is my top choice. Beginners will learn very quickly how to invest with Mintos, and for the experienced investors, Mintos will take 10 minutes to set up, and they will have, in my opinion, the most advanced P2P platform on the market.

Chapter I: Introduction to P2P Lending Platform Mintos

Before proceeding with our Mintos Review, let’s explain to the beginners what Peer-to-Peer lending is. Also, check out our p2p cashback offers available for new investors.

What is Peer-to-Peer Investing?

Peer-to-peer lending, for short P2P lending, is a type of loan service, where a P2P business lends money to companies and individuals online and matches lenders with borrowers. The P2P services are often offered online as it is cheaper than the traditional financial institutions.

The result is that lenders earn higher returns compared to deposits and savings accounts, provided by banks. And at the same time, borrowers can borrow money at lower interest rates. 

Thanks to the development of the FinTech industry in the last 10 years, we are now able to earn interest rates on our cash higher than even. And we don’t even have to go to the local office to do so.

For the past 18 months, I have been actively investing in 18 platforms for P2P and Crowdlending platforms, and in this article, I will make a review on one of the most famous European Peer-to-Peer lending platform – Mintos.

Let’s do this FIRE-starters!

Who is the Peer-to-Peer Lending Platform Mintos?

Mintos is a Peer-to-Peer lending platform founded in 2018 in Riga, Latvia, and is currently the biggest P2P lending marketplace in Europe. Now, Mintos has about 3 billion EUR worth of loans, which have been funded since the creation of the platform in 2015. 

Their investors over 165.000 and are coming from all over the world.

Mintos’ team consists of more than 60 employees. For the last 2 years, the company has reached already profitability, which is an excellent sign for growth and business, executed the right way.

At the moment, Mintos is hands down one of the best Peer-to-Peer lending platforms in Europe. Not just because it is the largest one, but it also offers the most advanced functionality, which, combined with high returns, makes it an outstanding opportunity.

Mintos has also earned several awards. In 2016 and 2017, Mintos won the People’s Choice award by ALTFI. The company was also a European Fintech Nominee. According to an AltFi article in 2018: “Mintos currently is the leading player in the peer-to-peer lending market in continental Europe with 39% of market share.” Mintos platform has consistently received excellent ratings on Trustpilot.

Mintos platform accepts investors from around 70 countries so far and offers a variety of loans in business, agriculture, invoice financing, car, mortgage, personal, pawnbroking, including short-term loans.

Right now, Mintos has available more than 300 000 loans on its primary market and more than 200 000 loans on the secondary market. All these loans are offered by 65 loan originators in 12 different currencies and 30 countries.

Today, you can invest in 8 different loan types (business, mortgage, personal, short-term, agricultural, car, pawnbroking, and invoice financing), in 27 countries (Armenia, Albania, Bulgaria, Botswana, Czech Republic, Colombia, Denmark, Estonia, Macedonia, Georgia, Finland, Kazakhstan, Kosovo, Kenya, Latvia, Moldova, Lithuania, Philippines, Romania, Poland, Russia, Spain, South Africa, Sweden, Spain, Ukraine, and Zambia) and in 12 currencies ( DKK, CZK, EUR, GEL, GBP, KZT, MXN, RON, PLN, SEK, RUB, and USD) with the most significant share of loans in EUR.

I hope you understand how big Mintos as a platform and opportunities are!

Mintos Review: Short Platform Overview

Here is a short overview of the benefits which Mintos platform offers to its investors:

  • Headquarters: Latvia
  • Founded: 2015
  • Funded loans (cumulative): 3 billion Euros
  • Average annual return: 12,08% pre-tax (self-reported)
  • Loan originators: 65+
  • Loan types: business, personal, invoice, agriculture, pawnbroking, mortgage, car, short-term loans
  • Loans from: 30+ countries
  • Currencies: DKK, CZK, EUR, GEL, GBP, KZT, MXN, RON, PLN, SEK, RUB, and USD
  • Investors from: 70+ countries
  • Minimum investment: 10 EUR
  • Buyback guarantee: Yes
  • Auto invest: Yes
  • Secondary market: Yes
  • Liquidity: High
  • Trustpilot TrustScore: 4.7/5

Chapter II: Getting Started on Mintos – Step by Step Process

How to Open an Account with Mintos

Mintos is one of the most accessible peer-to-peer platforms to get started with. It is straightforward and intuitive for the user. The first thing you need to do is to open an account on their website, which is free. This process takes less than 3-5 minutes, including the step where you will be asked to verify your identity. 

Remember that as with any investing platform – no matter if it is P2P, crowdsourcing, crowdfunding, stocks, or crypto, you will be asked to verify your identity in order to prove that you are a real person and you are not trying to launder money.

Once your account is created and verified, which usually happens immediately, you can then browse loans that are available on the platform to get a good sense of the platform.

To make your first investment, you will need to make a deposit first. I will show you how to do so in the next paragraph. Depending on the currency you would like to invest in, you will be provided with different bank accounts, which I found to be very thorough and convenient for the investor. 

The cost for the transfer on Mintos’ side is 0. Yes, you pay no taxes, unless your bank charges you for SEPA transfer (and it will). However, I will show you how to transfer money to Mintos without having to pay a dime. 

In my experience, if I make the transfer in the morning to my Mintos investing account, the money will arrive on the same day, early afternoon. The most I’ve waited is 1 day.

Even my local bank doesn’t execute that fast domestic transfers.

Mintos Sign Up Bonus

Except for the high returns on your cash, another reason to start using Mintos is that it offers several ways to maximize your income, through sign-up bonuses and cashback on particular loans. 

For new investors, Mintos offers a 1% bonus of the total invested sum in the first 90 days on the platform (I will also earn 1%). For the record, I am investing in Mintos long before, even considering becoming an affiliate.

If you sign up directly on Mintos.com, you will not get any bonus.

To get your 1% bonus, use this link to open an account on Mintos.

How to Deposit Money on Mintos?

So here, we reach the phase when we need to make the deposit after we have already signed up. As I previously mentioned, this is a super easy process. 

Click on the tab “Deposit / Withdraw / FX.” On this page, you will notice the “Deposit” section. From the drop-down option, please select the currency for your deposit. I invest only in EUR, so I make deposits only in EUR.

For each currency, there will be some additional options, but the main two are deposits via TransferWise and deposits via bank transfer. I have used both, and they work just fine.

How to Deposit Money in Mintos

However, my preferred option is to use my Revolut account. Why? Because it’s the fastest way and the cheapest. It costs me zero EUR to send money from my Revolut account to my Mintos account.

My Revolut bank account is also free. So there aren’t any hidden costs here.

For each type of deposit, there is a detailed explanation of how to make the transfer and how to include your account ID. Again, nothing complex, everything is straightforward.

Here is also an excerpt from the Mintos deposit page:

How to make a deposit?

1) First, transfer funds from your bank or your e-money account to your Mintos investor account.

2) In order to transfer your funds to Mintos, you need to indicate your Mintos account’s ID number.

3) The processing time of the fund transfer will depend on the transfer method you choose.

4) When the funds are in your account, you will be notified via your provided email address.

5) With the deposit in your account, you can start investing with Mintos right away! It will grow.

Chapter III: How to Set-up Your Investing Portfolio with Mintos – Step by Step Process

Primary Market: Types of Loans

Currently, I mainly invest in the primary marketplace. These are loans, available for investing.

On the primary marketplace, let my auto-invest strategies to invest all of my money automatically, and each week, I will invest 10 mins of my time in assessing the auto-invest strategies I am using – if I am making the best I could from what’s available on the Mintos platform.

Here is how to find the Primary Market. Note that on the right are the options through which you can filter out the loans you would like to invest in. They are a lot, and since the screenshot is small, not all of the options are displayed.

Primary Market Strategies on Mintos

In Chapter IV I will show screenshots from my investment portfolio, total investments, and my return of investment so far.

Mintos Invest & Access

Another cool feature which Mintos launched recently is their Invest & Access option. Here is a screenshot:

Mintos Invest and Access Feature

 

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This is basically an automated investment in a separate portfolio called Invest and Access. You can set how much money you want to invest in this portfolio. You can also change the limit whenever you want to do so. 

The Invest & Access was introduced during this summer (2019), and I started first with 500 euro just to test how easy it will be to withdraw money. As everything went smoothly, I added a total of 2000 EUR.

The benefit here is that you can withdraw all the money with status “Current” immediately, at no added cost. So you don’t have to wait or sell them on the secondary market.

For the amount of money with status “Late and Grace period,” you will just need to wait to be repaid or for the buyback guarantee to kick in. After that, you will be able to withdraw them immediately, again at no additional cost.

I call this portfolio “The Liquid Money” as I can literally in no seconds withdraw them to my Revolut bank account if I need cash. 

A few details to explain here. Mintos will invest only in loans on the primary market. Also, the average interest rate and average term are changing metrics, depending on what’s available on the primary market.

For example, when the feature was launched this summer (2019), the average interest rate was between 11% and 12%. Right now, the interest rates are a bit lower, thus the number you see. But next month it could be back to 11%-12%.

Also, from the screenshot, you can see that Mintos has diversified my Invest & Access portfolio across 267 loans from 41 lending companies. You can access all the details for each loan.

What is the Secondary Market:

Personally, I don’t invest in the secondary market. There are enough loans on the primary or my taste. However, here are the answers to some essential questions about the secondary market, available on Mintos.com

A secondary market is a place where investors can place their investments for sale to other registered Mintos investors.

Benefits to investors selling loans on the secondary market include:

– more liquidity for their investments, which allows access to funds when necessary;

– opportunities to profit by selling investments at a premium.

Benefits to investors buying loans on the secondary market:

– opportunities to make investments in loans not available on the primary market;

– opportunities to profit by buying loans at a discount.

How liquid is the secondary market?

You can see statistics about the secondary market under the Statistics section, where you will find monthly data about the number of transactions on the secondary market, volumes transacted in, and the number of investors that have made investments through the secondary market.

What is the premium/discount in the secondary market?

When you decide to sell your investment in the secondary market, you can do it at a premium, par or discount.

Selling at par (0% discount/premium) means that an investment with an outstanding value of 100 EUR will be available to other investors to purchase for 100 EUR.

Selling at a premium (e.g. 5%) means that an investment with an outstanding value of 100 EUR will be available to other investors to purchase for 105 EUR. Possible situations in which selling and purchasing at a premium would be viable:

  • the seller is looking to make a profit on sales of an investment;
  • the buyer is willing to get exposure to the cash flows from a loan, and the premium paid is acceptable when looking at the forecasted return on the investment.

Selling at discount (e.g. 5%) means that an investment with an outstanding value of 100 EUR will be available for purchase to other investors for 95 EUR. Possible situations in which selling and purchasing at discount would be viable:

  • the seller is looking to receive cash flows faster than according to the loan schedule;
  • the seller is looking to exit an investment with delayed payments, while the purchaser is ready to buy a loan with delayed payments.

Can I cancel my investment?

Once you have reviewed and confirmed your investment, you cannot cancel the investment. However, you can use the secondary market to sell the investment to other investors.

Loans with Buyback Guarantee: How Does It Work on Mintos

One of the risks associated with investing in peer-to-peer lending is a borrower default. And here comes the benefit of the buyback guarantee on the loan you have invested in – it protects your money. If you have invested in loans with a buyback guarantee, the loan originator issues a guarantee to re-purchase the loan from the investor once it is delayed by more than sixty days.

So the loan originators will buy back the loan from you, the investor, with the principle’s outstanding value, including interest income. This means that no matter the delay, you will still receive the expected return on your investment.

I think that this concept is excellent as it makes it more accessible for me and you to invest in P2P platforms, as the risk shifts from the investor to the loan originator.

And since there are plenty of loans on Mintos marketplace with buyback guarantee (not all loans come with a buyback guarantee, but there is a filter for this), I only invest in loans with a buyback guarantee. 

How Does Mintos’ Auto Invest Work?

A must function for any peer-to-peer platform is the auto-invest option. This feature allows you to create portfolios of automated strategies and reduce the time you spend manually investing.

Imagine if I have to log in each day to all of the platforms I invest to manually invest in loans. I still do this twice each month in order to check how my strategies are performing.  

Mintos offers 3 types of ready-made strategies, depending on the risk you are willing to take, or how conservative investor you are. And, as I have mentioned above, you can make your custom strategies by setting the loan parameters.

As I am in my early 30’s (just turned up 30), I am still an aggressive investor, and I have created my own strategies.

If you are just starting, I recommend investing manually in loans to see what are the different parameters for the loans. Then you can move on to auto-investing, as it will allow you to automate your investments on the platform and have a “passive investment.”

You can have different auto-invest strategies set simultaneously. At the top are strategies with the highest priority (before each strategy name, there are arrows to move them up and down) — this way, you are prioritizing their execution starting from the top to the bottom. 

I use this prioritization to firstly invest in high-interest loans before moving on to lower interest loans. Also, I pay attention to invest first in short-term loans, as my primary strategy is to achieve high liquidity, although I am a long-term investor.

Here is a screenshot of my auto-invest strategies for the primary marketplace:

Autoinvest Strategy on Mintos

From the screenshot above, you may notice that I only invest in loans with a yield above 10.5%, and loans with a maturity of up to 18 months. Also, I invest in EUR currency, in loans from all countries, and as I mentioned already, only in loans that have a buyback guarantee.

I also invest in each loan the smallest amount possible – 10 EUR. My portfolio settings include all loan types and all loan originators above.

There are a few other essential settings. Here is how I set the preferences: 

  • Interest rate: this is the range of interest rates you would like to invest in, for example, from 12% to 15%.
  • Remaining loan term: the maximum I set here is 18 months. As like my money to be liquid, I am experimenting with short, medium, and long-term loans;
  • Do you want to reinvest: “Yes,” I reinvest all returns;
  • Include loans already invested in: “No.” 
  • Diversify across loan originators: “Yes.” 
  • Portfolio size: make it large, so the investments don’t stop unexpectedly;
  • Investment in one loan: 10-20 EUR in high-interest-rate loans, and 10 in lower interest rate loans.

The only thing I don’t like about Mintos’ auto-invest feature is that when a new originator appears on the platform, they are not included automatically in your portfolios.

But it makes sense, as you may not want them to be included by default due to some personal feelings towards the new originator. However, I am subscribed to Mintos’ news and updates, and when a new originator appears on the scene, I get notified. Then I’ll go to my Mintos account and adjust my auto-invest strategies accordingly.

How to Withdraw Money From Mintos 

As with any investing platform, before committing a large amount of money to invest, I will always test how the withdrawing function works.

On Mintos, it is as smooth, as depositing funds. In my experience, it takes up to 2 days for the money to arrive in my Revolut account.

Here is a screenshot of the withdrawing function: 

How to Withdraw money from Mintos

Chapter IV: My Investment Portfolio and My Current Results with Mintos

Okay, so finally, let’s take a look at my portfolio. How much money I have invested so far, and what are my returns.

I started investing on Mintos in October 2018. Now, have in mind that I didn’t start with 5000 euros from the start. I have invested small sums during the past 1 year.

My Mintos Portfolio Overview

As you can see, I have invested so far 5000 euros in both the primary market and the Invest and Access portfolio. At this moment my annual return is 12.03% on my investments with a total profit of 279.30 euros.

This is a number that ultimately makes sense, as I mostly invested in loans with yields around or above 12% (at the moment of this writing, October 2019, short-term loans have a little bit lower interest rates of around 10.5%). You can also see that I haven’t had any defaults yet.

I have started tracking my progress only recently, however, since August 2019, where I have fully invested 5000 euros, my gains per month (before tax) are 79 euros per month on these 5000 euros, which is more than any deposit a bank can offer us at the moment.

I will update this section at the beginning of each month when I calculated all of my returns: next update, November 1st.

And as a rule of thumb, create diversified portfolios. Try different strategies and aim to invest small sums in many loans. Never put all eggs in one basket.

Conclusion on my Mintos Investments so far:

Currently, Mintos.com contributes regularly to my dividend income with nearly 80 euros per month in passive income. Yay!

What I Think are the Main Advantages and Disadvantages of Investing with Mintos Peer-to-Peer Lending Platform

Okay, so let’s highlight the advantages and disadvantages of Mintos I’ve found from my experience.

The advantages of investing with Mintos are:

  • Mintos is the leading P2P platform with the market’s most advanced features such as auto-investing prioritization, site-wide filtering, secondary market, and I think the only one to support currency exchange within the platform;
  • Mintos offers large varieties of originators and loans in different countries and countries;
  • Mintos offer buyback guarantee on almost all loans, which protects the investor from borrower bankruptcy;
  • My current average annual returns of 12.03% are great, compared to deposits, saving accounts, and even the stock market returns;
  • Mintos offers detailed information on the originators and credit ratings of all loans; 
  • Mintos has sound and accurate deposit, withdrawal, and customer service – all three tested;
  • Mintos is a profitable company and continuously growing one, shipping with new functionality and more loan originators monthly.

The disadvantages of investing with Mintos are:

  • The first disadvantage is that there isn’t a way to automatically include new countries, loan types, or new originators in your already created auto-invest strategies. You will need to do this manually. If you have activated your notifications from Mintos, you will receive an email each time a new originator or country enters their platform. 
  • The second disadvantage (although, not exactly disadvantage), there has been one case in the past where one originator went bankrupt. However, this is the most significant risk with any P2P lending platform. This can happen to any platform.

Chapter V: Questions and Risk Management with Mintos P2P Platform

What Returns Can I Expect From Mintos?

So this is one of the most asked question – how much I can earn on Mintos? You can definitely make more than what you are currently earning from your bank’s deposit or savings account rates. 

The essential part with Mintos and the other P2P platforms is that they gave us the ability to keep our cash liquid while fighting inflation and earning income on top. I hope you understand how valuable is this. And the development of the FinTech Industry in recent years made it possible for us, the end investors.

So, up to the question. On the homepage, Mintos advertise a consistent return of 12.05% per year on average. What I have achieved is 12.08%, which proves their statement.

Of course, you can achieve less or more, depending on how aggressive your strategy is. At the time of this publication, the interest rates are from 5% to as high as 20%.

They will depend on the loan-term and their risk. I am absolutely happy with any return of 10%+, and my money is still liquid. I am also glad that I can support Mintos by investing in their business – as if brave investors didn’t exist, the P2P business wouldn’t have survived.

Is It Safe to Invest in Mintos? Is Mintos Legit?

As for risk, every type of investment comes at a risk, even your bank deposit, and savings account. Even investing your money in real estate is put under risk.

However, Minos gives to its investors some solid reasons to believe that their business is quite stable – they offer buyback guarantee, most of the loans on the Mintos marketplace are secured by property, car, etc.

What this means for the investor is that even if a loan goes to default, the originator has an asset to sell and distribute the money among the investors.

Always remember to invest a sum, you are willing to lose in case the economy goes down a bit. I am not trying to scare you away, just to outline the benefits and the risks of any investment.

Who Can Invest in Mintos? Is Mintos Available for International Investors?

At the moment of this writing, both companies and individuals are eligible to invest in Mintos. However, there are some requirements for investors to be able to invest in Mintos.

First, individual investors must be at least 18 years old, have a bank account in the European Union or third countries currently considered to have AML/CFT systems equivalent to the EU, and have their identity successfully verified by Mintos.

UK citizens, residents or taxpayers currently can’t invest on Mintos platform.

Mintos Fees

Mintos is entirely free to use. There are no subscription fees for opening an account. Withdrawing and depositing money is also free.

Mintos Support

I’ve used Mintos’ support via email, and I have been answered and supported within the reasonable 24-hour-time frame.

For me, an online service must have an excellent and empathetic support team. And Mintos meets this requirement.

Should You Invest on Mintos?

Mintos has definitely won my heart, and it has the biggest position of investment in my portfolio. After a year of investing in the Mintos platform, my experience with their investment process, and the results are more than exceptional. 

The fact that they are already profitable and stable, the fact that they have very sound support, the development of the platforms continues with new features, and they have the vision of a leading player in the FinTech and Peer-to-Peer industry.

However, you should always remember that all investments are risky, and you should never invest more than you are willing to lose. I am not saying that you will lose your money, but nothing in this world is absolute, investments too. 

The rule with P2P investments is to invest around 10% of your net worth across multiple platforms. I am a big fan of diversification. That’s why I invest in multiples P2P and crowdfunding platforms.

So to answer the question, should you invest in Mintos – yes, if you have chosen to include peer-to-peer lending in your investment portfolio, Mintos is the first platform to recommend. I am so far pleased with their overall performance on the market and as a part of my FinTech investment portfolio.

Should I Pay Taxes?

Yes, you should pay taxes on your net income received from Mintos. Usually, the tax is paid once a year, but as the legislation in each country is different, please do research or advice yourself with an accountant.

Also, the tax percentage you would have to pay on your income is different for each country. You should check how much it is for your country of residence.

Mintos has helped a lot in the process of taxation, as each investor can receive extensive information necessary for tax returns when logged into your Mintos investor account.

Here is where to find this information:

Mintos Tax Report

Which Are the Best Alternatives to Mintos

Mintos is definitely one of the favorite platforms for all investors I know. However, it is not wise to put all of your money into one platform – you have to diversify a bit. The alternative P2P platforms I use are Bondora, Swaper, Dofinance, Debitum, Viventor, Klearlending.

Mintos Review Conclusion

In this review, you have probably already sensed that I am delighted with my investments in Mintos so far. The returns have been stable, and the platform is super sound. With Mintos, I really have the vibe that my investments are safe (as safe an investment could be). 

For both new and experienced investors, Mintos is my top choice. Beginners will learn very quickly how to invest with Mintos, and for the experienced investors, Mintos will take 10 minutes to set up, and they will have, in my opinion, the most advanced P2P platform on the market.

Mintos investors – go-go!

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