Mintos is a Latvian P2P marketplace for investors that links different lending companies with investors and borrowers. According to AltFi Data, it currently leads the continental Europe marketplace with a 38% market share. Launched in 2015, the platform serves over 60 loan originators and more than 146,000 investors from 70 countries. Mintos offers an accessible and transparent option to the traditional banking system. In 2017, Mintos reached profitability with EUR 2.1 million in revenue and EUR 196,000 as net profit.

How it Works

Both retail and institutional investors can invest in fractions of loans from across various loan types and continents. Mintos connects loan originators to the marketplace and offers instant access to investors looking to buy loans

Opportunities for investment include personal unsecured loans, mortgage loans, invoices, secured car loans, and small business loans. Many of the marketplace loans are secured. This means the borrower has to attach an asset with their loan application. In case the borrower defaults, the loan originator can engage to sell the asset and redistribute the money to investors. This lowers any potential loss in case of a default.

Buyback Guarantee

Mintos buyback guarantee is usually with secured loans. This is a promise from the loan originator that they will intervene and refund you back the invested principal plus interest earned. This is inclusive of the 60 overdue days a borrower fails to make repayments. Though this method is not risk-free, it transfers the risk from the borrower to the loan originator.

Campaign Rewards

Mintos introduced campaign rewards in 2018. This allows you to get cashback when you invest in loans from a certain loan originator. In some cases, the loans may even be repurchased if the loan agreements change. In such a scenario, you’ll receive your invested principal plus earned interest which you can withdraw or invest in new cashback loans.

Mintos Auto-Invest

Auto-invest is a Minto tool that automatically completes your investment of choice strategy. Once you choose your investment criteria, Auto-invest will invest in suitable loans on your behalf. Auto-invest is accessible anytime and you can follow your portfolio activity in real-time. The tool is efficient as it saves time spent on investment matters. You can even access newly placed loans in the system before manually-made investments.

Auto-invest has three investment strategies

  • Primary market with a 14% interest rate and buyback guarantee within any duration.
  • Primary market which features a buyback guarantee, 13% interest rate, and a 12 months duration.
  • Secondary market which features loans with buyback guarantee, 14% interest rate and a 60 months duration.

As a new originator, you need to choose and fine-tune your strategy when there’re new campaigns or when interest rates change. Failure to adapt may lead to cash drag when no loans fit your benchmark. If you set your benchmark low, you can even miss on higher-interest loans.

The main advantage of Mintos is the variety of options to diversify your investments. But you must exercise caution as it could also be another fraud. This is partly due to the many loan originators and options making it difficult for new investors to choose the best investments. Despite some doubts, the generous buyback campaigns offer Mintos a trusted P2P platform with a long working history and various diversification options.

By Jeff Mwaura, Jeff is Kenyan based freelance writer with a focus on technology and finance.