mintos p2p lending platform

Mintos with 13% yield on my invest – Is that possible?

Mintos is one of the biggest p2p platforms in Europe. With over 2 billion Euros invested loans and nearby 150.000 investors Mintos outperforms anyone else. Relying on the p2p loan volume of p2p-banking.com from April 2019 the whole market volume is about 550 million Euros.

The share of Mintos is 190 million Euros. This is nearly 35% of the whole market, whereas Mintos is the biggest platform for investors. Investing in the leading platform sounds like quite safe and additionally very clever. The yield to receive through an investment is 13%, if I believe the public data.

Tell me more about the vision of AS Mintos Marketplace

The company is located in Riga, Latvia. The team has a size of 65 employees in June 2019. Those people guarantee the the work of the platform. Mintos was launched in 2015 and expanded since then to the leading loan provider.

Investors and borrowers are brought together through Mintos. Therefore the loans are rated by standardized conditions. Depending on the investment strategy the lenders invest their money in the loans. Every month they now receive their interest and are able to invest again or to withdraw they money from the p2p platform.

Who is leading Mintos?

The founders are Martins Sulte (CEO) and Martins Valters (COO, CFO). Both agreed on several values with their team to work on. So lets check those values to get a better impression of their vision:

Growth mindset

The definition of their growth mindset is to “challenge the status-quo“. Learning and experiencing is the main point in the mindset to always go further on.

Transparancy

As a provider of loans for investors the goal is to be trusty to any partner. Knowing the vlaue of trust in the business of p2p lending every action is organized along their transparancy rules.

Innovation

Being “simple, efficient and hassle-free” is the motivation to go the extra mile for the business. As a leader and innovator the goal is to stay hungry in order to satiesfy the partners.

mintos leading team

Efficient investing in peer to peer loans

Well, on the first view this vision sounds like a real all-inclusive investment. I will check, whether my investments in loans will be handled that way or not.

As I mentioned in my first post about P2P lending I really like the easy way of making investments. Less time invested and still a good yield should lead to a step further onwards to financial freedom.

My personal vision of my Mintos p2p investments

The seize, the age and additionally the good reviews made me think of a special project here. I already mentioned that my financial freedom should come from passive income streams.

I will try some of them the next months, but peer to peer lending itself is passive income stream. So why not use it?

Mintos just announced their yield of 13%. Until my early retirement I have another 77 months to go. Lets establish the very first passive income stream in my portfolio. Therefore I made an inital first invest of 1.000 Euros.

calculation passive income

Every month I will add another 100 Euros. Calculating with 13% interest the total amount in 6.5 years will be approximately 13.980 Euros. Now calculate this amount of money with 13% the yearly passive income will be 1.817 Euros. Divided by 12 the income stream is 151 Euros monthly.

Does that sound great?

For me, it does. So lets just start this project.

What if….

There are quite a lot things and circumstances, which can happen in 6.5 years. You are right. But I am not able to avoid them. By now it feels good to act like this. I already mentioned in one of my last posts, that P2P lending has its risks. But to clear up things: I am not only investing in peer to peer loans!

This is just a part of my portfolio. So please do not invest just in peer to peer. Fill up your portfolio with several different assets, to minimize the risk of losing everything.

What is the risk in this project?

I can not see any more risk, than before. There might be a risk of not using the other platforms as much as I invest here in Mintos. But lets see what time will show in one year for my Mintos review. If there is a imbalance I need to rebalance it. First of all I need to save the monthly rate and hope for automated interest on my account.

Lets start the first investment on Mintos

I browsed to the Mintos platform and made my inital registration. You just need your personal data and a scan of your ID card or your passport.

Register your investor-account

At first you just need to enter your mail-adress. After pressing “continue” fill in your name, surname and create a password.The strength of your password is shown in the screen. Maybe it is not very useful to choose your name.

Mintos registration first step

If you do not have any idea you will receive very strong passwords from the LastPass-Generator. Afterwards you need to choose your country. Here it is necessary to scroll a bit, whether you are not from a country beginning with an A. The function of an auto-fill is missing here and would be quite useful.

Second step of registration of investors account

Identify yourself via online verification

Now you will need a webcam, which is included in any laptop or computer. I think this would be also possibly with your smartphone, but to be honest, I have not tried it. Just click on “verify” to start the process.

Verification at mintos

First you will have to take a picture of yourself. In the second step you need to make a picture of your passport or your ID card, which shows your data. Please take care of the pictures quality. Mintos is forced by law to do this process. If they are not able to read the data on the picture, the will not verify you – and you will have to do it again.

Make your first deposit

Before investing in a loan you need to make a deposit to your account. Choose your currency as well as the method. You are able to tranfer via trustly, SEPA-transfer or transferwise.

Each of the possibilites has their advantages, but for me the SEPA-transfer is the easiest way. Usually SEPA-transfers cost nothing at your bank, but please check your account details before using it.

Always insert your account details within the transfer, so the money can be forwarded to your account. When you forgot about it you are able to contact the support. They will help you out when you send them the details of your transfer.

Setup the Mintos auto-invest

Account registered, verified and some money transfered? That is the perfect condition to start for me. So here we go.

Setup Mintos auto-invest

As you know I do not want to select each loan myself. I want to invest automatically, whereas I need an auto-invest to do the work for me. When browsing to the auto-invest on the peer to peer platform I have to “create a new auto-invest strategy”.

Now I am offered three different strategies, which are all explained in the boxes below. As I want some details of any strategy I have to setup my own auto-invest strategy. Do not by shy, just have a try!

Mintos investment strategy

Therefore I go to “custom strategy”. Here you choose the currency, which is Euros for me. Additionally I just want to lend my money on the primary market. This means to just put lending money into loans from originators.

auto-invest strategy

On the secondary market you are able to also invest into a loan from another investor. At the moment this is no option for me, so I choose the primary market.

Choose the loan originators

Well, the list of originators is quite long with 57 entries at the moment. Time passes by an new originators will be added and others will be thrown out. Because I do not have any idea of those companies I trust in Mintos and click any originator.

Setup your risk-profile

The second pulldown-menu is for choosing the risk rating. Here you can click any risk class you are willing to lend to your money in. As long as the loan is buyback guaranteed I am not interested in the risk class. So I keep all of the them and do not exclude any.

mintos auto invest setup

Investing in loan types

Some investors do not want to lend their money for consumption loans like car loans or a personal loan. You are guessing right, that I am not interested in those possibilities, as well as I can understand anyone who differs here. You have to make your own choices when lending your money to anyone else.

Auto-invest by country

When investing in shares many people are told to just invest in home shares. This is called the home bias. You can act the same way with p2p lending, as long as your country is mentioned here. I take this amount of countries as a big diversification for my peer to peer loans. So once again I tick all boxes, because I do not want to exclude any country.

Setup loan originators

Lending money with buyback guarantee

My strategy just includes loans with buyback guarantees. When asking in the auto-invest for buyback guarantees I just take those loan, which is additionally secured with a guarantee.

High Risk and longtermin investing

After adjusting the auto-invest about the loan types, I will have to choose some different details. At frist I have to choose the interest rate. This number is quite important for your auto-invest, because the automation will just invest in a loan, when the interest rate meets qour requirements.

Loan term at mintos

I really thought about this point, but I will accept all interest rates above 8%. The average interest rate is currently at 13%, so I will trust Mintos another time to make the best out of my money.

auto-invest setup last step

In the next graph I am able to choose the remaining loan term. There I will adjust it to 48 months. Do not ask why, but somehow I feel better with it. Anything you are lending money for should be payed back as soon as possible. More than 4 years sound quite like an investments which is above the possibilites of the lender.

Save and forget

This is how you setup an account and your auto-invest. I am very excited whether things will work out for me as planned. So I will keep an eye on it, but just once a month.

With in the next days I will check how fast my deposit of 1.000 Euros will be invested. Afterwards I will try to forget about it.

Do you want to invest in Mintos? Use this link and have fun!

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