My opinion on Mintos
Mintos’s pros & cons
- A huge quantity of loans available, for virtually any duration
- The platform features many originators, allowing you to diversify your portfolio
- Opportunity to invest in many countries and different currencies
- Overall ergonomics is excellent
- Opportunity to invest in pre-defined strategies
- Auto-invest can be tricky to configure for beginners
- Interest rates have recently dropped significantly
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.
The platform features both secured and unsecured loans. I initially invested in secured loans in Euro with a duration shorter than one year, but currently also invest in long-term loans (5 years or more). For Euro loans, the maximal interest rate available as of November 2018 is 12%; this is much lower than previously but still interesting.
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.
A great way to boost your returns is to sign up for Mintos’ campaigns, and direct your investments accordingly.
Mintos often adds new originators. You’ll get notified about it and will have the opportunity to include them in your auto-invest portfolio.
Like most competitors, 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 !Investors interested in easy ways to invest can refer to my article on one-click investing; it compares Mintos’ predefined strategies, DoFinance and Bondora‘s Go & Grow.
There’s a secondary market available, should you ever want to resell your loans. Mintos used to charge a 1% commission on these operations, but since November 2017 them removed this fee.
Here’s what the auto-invest screen looks like. You first select the currency to invest in, then display originators according to a criterion (loan type, buyback, country). For each of them, you see the loans type they provide, which countries they operate in, and can select if you want to invest in loans with or without buyback. This list as actually quite impressive : right now there are 25 originators available !
The lower part of the screen show two very handy graphs, allowing you to explore the available range of interest rates and remaining term. Using them, you can very easily estimate how quickly your funds will be invested. Finally, you classically choose the portfolio size, whether to reinvest or not, and the minimal/maximal loan size.
A recent feature is the neat option to diversify your portfolio across loans originators. This will help mitigate the risks in case things go wrong with one of them; I strongly encourage you to check this box.Finally you may click on the “Show summary” link on the right to view a breakdown of the matching loans by type/country/originator, or list them all using the “View all loans” link. Neat !
Website’s ease of use
Website’s design and ergonomics
It’s quick and responsive. Browsing and filtering available loans is easy, and so is the auto-investment feature. Also, they often rearrange the design of the website in order to match new settings. For example, as the originators list grew very large, they changed the design of the auto-invest page in order to make it easier to use.
Account statement and investments list look nice and are useful, just like the remaining of the website.
Actual performance of my Mintos portfolio
As of August 2018, the computed XIRR for my Euro loans is 12.97%. This value is slightly higher than the 12.62% displayed by Mintos as “net annualized return”. It’s a nice return for guaranteed loans, although I strongly encourage you to also check out Grupeer if you want the best performance for such loans. However, most of this performance is created by earlier loans, whose returns are higher than current ones. A more realistic performance for newer portfolios would be around 11%; it’s the price to pay for increased safety, as the main originator (Mogo) now takes less risks than it used to !
Mintos’s facts and figures
Number of investors88 867
Loans amount financed€ 1 265 315 439
Who can invest
Both individuals and entities can invest through Mintos. 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.
Family trusts, partnerships, limited liability companies and other organizations must have a bank account and be registered in the EU or third countries currently considered to have AML/CFT systems equivalent to the EU. (Mintos FAQ)
Please note that this review may contain affiliate links. It means that I will earn a commission if you decide to invest after clicking through the link – at no additional cost to you, of course -. Please understand that I have experienced all of these companies, and I recommend them because they are helpful and useful, not because of the commissions I make if you decide to invest through my links.