My opinion on Mintos
Mintos's pros and cons
1 month or less
1 month – 1 year
More than 1 year
Buyback guarantee available
Mintos offers an impressive array of loan kinds, in many countries. You’ll setup a different profile for each currency, choose the minimal interest rate, which originators to include… possibilities are nearly limitless.
It offers both secured and unsecured loans. I initially invested in secured loans in Euro with a duration shorter than one year. However, longer durations currently offer very interesting rates for secured loans (14%, with even a low volume of 15% loans as of May 2018), so I now invest for as long as 5 years.
I used to have a much more speculative GEL (that’s Georgian Lari) portfolio which was totally invested in short-term loans, offering a nice 17% interest rate. However, performance suffered from the exchange rate variations, and from Mintos’ FX conversion commissions so I ended up killing this portfolio.
Mintos often adds new originators. You’ll get notified about it and will have the opportunity to include them in your auto-invest portfolio.
Also, a great way to boost your returns is to sign up for Mintos’ campaigns, and direct your investments accordingly. One recent offer allowed you to get as much as 5% cashback when investing for 60 months or more with Mogo, one of their many originators.
Two last notes regarding originators : first, Mintos has a mechanism called “skin in the game”, which means that the originators have to keep a portion of the loans (usually 10%). This ensures that the originators provides quality loans, as they will be directly impacted if the borrower defaults. Mintos FAQ has a great explanation of the skin in the game, which I incite you to read.
Also, since August 2018, they started rating their originators, from A+ (safest companies) to D (defaulted originators). It’s possible to configure the auto-invest to use only selected ratings, which is great for investors’ safety !
For investors who don’t want to bother with configuring auto-invest, Mintos now offers predefined strategies. There are three of them, named Short-term strategy, Diversification strategy and Secured loan strategy. The indicative returns currently vary between 7% and 8.5%, which is lower than what you could get using custom auto-invest settings. When the pre-defined strategies were launched, the indicative returns were as high as 12.5%; they have since dropped significantly !
Secondary market available