Mintos is a peer to peer lending marketplace, where many loan originators come together and offer their loans to a large amount of investors. Investing in peer to peer lending allows a steady growth of your net worth, assuming everything goes right. Mintos is currently the leading peer to peer lending company in Europe.
The goal of this article is to help newcomers or people that don’t have a lot of time to spend on research. Fabulous Life Adventures will help you maximize returns or help you find safer investments.
|3 months||6 months||12 months|
|13.42% (EUR) / 13.94% (GEL)||24.49% (EUR) / 15.95% (GEL)||21.89% (EUR) / 13.88% (GEL)|
Loan Originator Performance Analysis
Here we will analyze the loan originator’s performance on Mintos by buyback guarantee, country and currency. We found by experience that these are the 3 parameters that influence the loan performance the most. This also gives us an accurate understanding as to why a certain loan originator may not be performing so well.
On Mintos, we found that investing in loans with a term of at least 6 months perform better. Generally, you may want to avoid all short-term loans with 1 month or less. The reason behind this is that simply you cannot solve debt by getting a loan and pay it off next month. Most likely they will end up being late, sitting in your portfolio forever, until they are eventually purchased back.
What you should do is invest in long-term loans. What you are probably thinking is that this will increase your exposure, and you may not be able to pull your money away quickly enough when things turn bad. However, if you invest in long-term loans such as 36 months or more, in the beginning your portfolio may not look so good, you will notice a lot of late loans. However, those loans will be purchased back, and new loans will come into place. These new loans may have some good loans too, and they will stay in your portfolio, and the bad loans will be bought back once again. After a few months, you should have a very strong portfolio with only 10-20% of the loans being late, maybe less if you picked the loans well.
With a well diversified portfolio, over let’s say 10 loan originators, you have about 10% exposure, if only 10-20% of your loans defaults, you will lose an estimated 1-2% of your portfolio. I strongly believe peer to peer lending will not be affected by an economy going bad. People always need loans, some people lose their jobs. If you look at actual statistics, there were only a few hundred thousand job losses every month with an actual population of 300 million people.
That being said, I believe your chances should be better compared to stock trading or cryptocurrencies where you could lose everything overnight.
- Minimum 1,000,000 EUR in outstanding loans
- Minimum 500 loans
- Minimum term of 3 months
|Loan Originator||Currency||Country||Current/Total Ratio||Outstanding|
|Capital Service||EUR||Poland||87%||€ 2,845,687.57||4,807|
|Capital Service||PLN||Poland||90%||€ 2,845,687.57||227|
|Creditstar||CZK||Czech Republic||66%||€ 8,074,592.74||267|
|ID Finance||EUR||Georgia||90%||€ 33,250,039.96||5,927|
|ID Finance||EUR||Kazakhstan||100%||€ 33,250,039.96||350|
|ID Finance||EUR||Spain||89%||€ 33,250,039.96||274|
|ID Finance||GEL||Georgia||83%||€ 33,250,039.96||3,838|
|ID Finance||KZT||Kazakhstan||100%||€ 33,250,039.96||82|
|Mozipo Group||EUR||Denmark||71%||€ 6,756,570.68||602|
|Mozipo Group||EUR||Lithuania||90%||€ 6,756,570.68||6,087|
|Mozipo Group||EUR||Romania||80%||€ 6,756,570.68||978|
Loan Performance Details
When we remove the term filter. However, short-term loans don’t give an accurate indication of a loan originator’s performance.
- Minimum 1,000,000 EUR in outstanding loans
- Minimum 500 loans
|Loan Originator||Cur.||Country||Type||Ratio C/L|
|Capital Service||EUR||Poland||Personal||87%||€ 2,845,687.57||4807|
|Capital Service||PLN||Poland||Personal||90%||€ 2,845,687.57||227|
|Creamfinance||CZK||Czech Republic||Personal||78%||€ 16,972,116.73||292|
|Creamfinance||CZK||Czech Republic||Short-Term||73%||€ 16,972,116.73||1620|
|Creditstar||CZK||Czech Republic||Personal||61%||€ 8,074,592.74||346|
|Creditstar||CZK||Czech Republic||Short-Term||66%||€ 8,074,592.74||205|
|EcoFinance||EUR||Russian Federation||Short-Term||80%||€ 5,017,121.62||1383|
|EcoFinance||RUB||Russian Federation||Short-Term||100%||€ 5,017,121.62||451|
|ExpressCredit Zambia||EUR||Zambia||Personal||100%||€ 1,401,983.98||2230|
|ExpressCredit Zambia||EUR||Zambia||Short-Term||100%||€ 1,401,983.98||5414|
|ID Finance||EUR||Georgia||Personal||90%||€ 33,250,039.96||5927|
|ID Finance||EUR||Kazakhstan||Personal||100%||€ 33,250,039.96||350|
|ID Finance||EUR||Spain||Personal||73%||€ 33,250,039.96||4816|
|ID Finance||EUR||Spain||Short-Term||67%||€ 33,250,039.96||6493|
|ID Finance||GEL||Georgia||Personal||83%||€ 33,250,039.96||3838|
|ID Finance||KZT||Kazakhstan||Personal||100%||€ 33,250,039.96||82|
|Mozipo Group||EUR||Denmark||Personal||71%||€ 6,756,570.68||615|
|Mozipo Group||EUR||Lithuania||Personal||90%||€ 6,756,570.68||6327|
|Mozipo Group||EUR||Lithuania||Short-Term||93%||€ 6,756,570.68||176|
|Mozipo Group||EUR||Romania||Personal||80%||€ 6,756,570.68||1032|
|Mozipo Group||EUR||Romania||Short-Term||91%||€ 6,756,570.68||34|
If you plan on investing manually, then car loans is most likely the best way to go. You know the age and gender of the borrower as well as the type of car they are buying. You may for example want to avoid investing in a 20-35 year old buying a BMW 7-series, these borrowers will end up most likely with expensive repairs sooner or later. Look up the MSRP of the car they are buying, the new value of car will most likely represent the repair costs more accurately.
Also don’t forget to look at the fuel type and capacity of the engine. Anything above a 2.0L engine is going to be consuming a lot of gas. Mogo is very transparent about these details.
If possible, try to invest in car loans that have been issued at least 1 or 2 months ago and have had 1 or more successful payments. Most of the time used cars have some problems that need to be fixed after purchasing, which can lead to unexpected costs.
- Which car brands depreciate the least? Dacia, Toyota, Mazda and Nissan.
- Which car brands depreciate the most? Cadillac, BMW, Audi, Lexus, Infinity, Mercedes, Opel, Ford, …
- Which car models depreciate the least? SUVs, cross overs, pick-up trucks, sports cars
- Which car models depreciate the most? Hatchbacks, luxury vehicles
Generally I would avoid this type of loan altogether. When you look at the bare statistics at Mintos, you can see these type of loans have a lot more late running loans. The reason behind it is most likely that people are more desperate to get a loan, so they are starting to put valuable personal items as collateral.
If you want to have your money available within a 3 month time frame assuming they may run late and are bought back within 60 days, then this loan type is for you. However, there are a lot of late loans here, so if you invest you can check if late fees are being paid by the loan originator when it’s bought back. But I find this counter productive, and only increases the chance of the loan originator defaulting.
Generally you can expect much lower returns. Because of this, I would recommend investing in long-term loans and just selling them if you need the money again. As I mentioned earlier in the article, buying new loans very frequently results in more late loans in your portfolio which could result into higher risk if the loan originator defaults.
Agricultural loans are fairly risky when we start looking at the climate. Make sure to look up the climate of the region and the possible impact of the weather on the agriculture industry in that region.
Having a mortgage loan with an interest rate of 8% or higher is risky. Be sure to invest in mortgages with a lower borrowed amount. However, a default rate of 2-3% isn’t all bad for mortgage loans without a buyback guarantee. And they are secured by collateral after all.
Business Loans & Invoice Financing
I’d recommend taking a look at the finances of the business you are investing in, if available. Sometimes these are backed by collateral.
How much taxes you have to pay on Mintos, depends on the type of income. I recommend you to consult with an accountant to optimize your strategy for Mintos.
- Interest Rates: 30% (Tax Code 1160-04)
- Capital Gain: 0%
Belgium only has capital gain tax on buying and selling real estate with profit, and pattern day trading.
- Campaign Rewards (Cashback): 0%
Sign up now and receive 1% cashback on your average balance the first 90 days.