Since launching in 2015 Mintos has developed into one of the top peer-to-peer marketplaces in Europe, but is it worth the hype? The Latvian based business went from a start-up to a Fintech Award nominee in just one year. With over 15,000 investors from over 50 countries, Mintos is certainly a bustling marketplace with a thousands new users signing up.
It might seem strange that a Latvian based lender would be a go-to choice for people in Ireland but one of the most appealing things about Mintos is its popularity with international investors. Mintos states that their “mission is to facilitate free and efficient movement of capital” and they have already seen huge growth since launching.
The signing up process is simple, all you have to do is fill out the registration, it should not take longer than five minutes.
Whether you’re with AIB or Bank of Ireland, all transfers must be made via SEPA bank transfer. On average transfers take 1-2days to show up into your Mintos account. Don’y forget to add your investor number as the reference. This number can be found on the deposit page.
How Does Mintos Work?
One of the main pros of Mintos is its simplicity; they act as a matchmaker for lenders looking to raise capital and investors looking to make money. The marketplace is where all the action takes place, investors browse through the website in search of lucrative loans and invest in loans that will offer a safe return.
Lenders, on the other hand, can list their loan on the marketplace to attract investors to them, rather than looking for a loan from a bank they can simply use the platform to raise money at affordable rates. The marketplace makes it easy for lenders to sell their loans on to investors and it can all be set-up in minutes.
There are six different loans you can invest in on Mintos including mortgages, car loans, business loans, short-term loans, agriculture loans and that’s just a sample of them. The secondary market is also worth mentioning, this is separate to the main marketplace and can be leveraged to sell any current investments you have to other users.
The risk involved could be minimal or high depending on exactly what type of loan you invest in and navigating the platform can be tricky unless you have some experience. Still the process of investing is very simple and Mintos offers a lot of variety. In comparison to Irish P2P lenders such as Linked Finance and Flender, Mintos are a lot bigger with more opportunities to make money; this is the main reason they are becoming popular in Ireland.
The Pros and Cons
So, now you have an idea of how the platform works let’s take a closer look at the pros and cons.
- Minimum investment of only €10.
- Great alternative to Irish P2P lenders.
- High potential interest returns – it’s not unrealistic to receive an annual return of 12%.
- Buyback guarantee available on certain loans. In the event that a loan is overdue or defaulted on, the loan originator will repurchase the loan.
- A wide range of loan options.
- Free currency exchange is available.
- The secondary market allows investors to cash out early with no selling fees.
- Auto-invest management tool can be programmed to suit you’re level of risk.
- The lender is not FCA regulated.
- Higher risk on certain kinds of loans.
- No provision fund service is available.
- Currency exchange risk when investing in loans with a different currency.
- Mobile app needs to improve so customers can conveniently check investments.
- You need to act quickly because the best loans got bought fast. Lenders can overcome this by learning how to use the Auto invest feature.
- Irish residents have to pay tax on any profits.
Mintos vs Twino
Twino is another leading P2P lending platform based in Latvia that is growing at a phenomenal rate in Europe. Both companies are safe and offer buyback guarantees but Twino is less popular because they have lower loan volumes and offer lower interest rates. Despite Twino having low loan volumes its easy to liquidate investments on the secondary market.
No promo codes are currently available but Mintos does offer a 1% cashback on investments made within the first 90 days.
Mintos might not be perfect, but it is definitely worth exploring in 2018 before it becomes too popular. Once supply and demand levels out overtime the interest rates on loans will drop below 10%, this has happened to well-known peer-to-peer lenders in the US and UK.