This months’ € 1500 goes to Mintos. This will be my first ever peer-to-peer lending investment. The reason why I have chosen Mintos is that I did some research – well not a proper research, but I read other peoples researches and opinions on Mintos, and it looks like it’s a decent provider. I’m not going to pretend that I understand all aspects of peer-to-peer lending, but I think I understand enough. At the end of this post I will state a few questions to which I will try to find answers in the next weeks. But let’s do a deep dive into Mintos now.
I created an account and sent € 100 to it about 2 weeks ago. Just to have a feeling about it before I invest more. I used Transferwise for the money transfer, and although I had to contact Mintos support after 2 days about my payment, shortly after that the money appeared on my account. Kind of irrelevant, but this is what I did with that € 100:
I will probably have multiple strategies, but as a start, I created an auto-invest strategy with the following parameters:
- Interest Rate: 11-14%
- Remaining Loan Term: 0-5 months
- Loan Originator Rating: A or B, everything below is excluded
- Country: no offence, but EU countries only
- Max Amount in One Loan: € 25-75
- Buyback Guarantee loans only
It says that currently 2461 loans meet all my criteria, but there might be a bug in here because a few hours ago there were only 450. But even if it is 450 only, that’s more than enough to allocate my € 1500 this month. I saved this strategy “Short term, Europe, Safe”, and I will activate it as soon as my funds arrive to my account.
I will write a post about how my funds get allocated in a week or so. And now the questions that I’m yet to find an answer to:
- The interest rate of these credits are very attractive (from the lender’s point of view). Why people borrow money this way rather than going to a bank? Not that I’m a big fan of banks, but I presume banks would offer credits on a lower rate. I do have an assumption on why they still don’t use banks, but I won’t tell until I verify.
- How Mintos secures the sources for the buyback guarantee? I guess I could answer that with a simple search, but I’ve been lazy
If anyone knows the answers, please write in the comment.