So, you have decided that you want to invest in P2P loans, or you want to find out some more information about what P2P loans are? Well you have come to the right place.
A P2P investment account is classed as an alternative investment (compared to things such as share trading, term deposits etc). What is P2P investing you ask? P2P means peer to peer (i.e. from me to you) and allows one a person to take a loan from another person, This means that you bypass a bank or other official financial institution . The result – better loan interest rates for the borrower, and a higher investment interest rate return for the investor. These returns can be much higher than interest, term deposits and other financial investments. Read more about mintos, and how you can invest.
Mintos (www.mintos.com) launched in 2015, and classes itself as a global online marketplace for loans. At the time of writing (May 2018), Mintos facilitates 39 loan originators which operate in 22 countries. These countries include: United Kingdom, Poland, Armenia, Sweden, Czech Republic, Latvia, Georgia, Colombia, Lithuania, Estonia, Bulgaria, Denmark, Finland, Spain, Russia Federation, Romania, and Botswana among others. Mintos also allows investments in multiple currencies including, among others: US Dollar, Euro, British pound, Swedish krona, Danish krone, Russian ruble, Georgia lari. Mintos also offers a currency exchange (for a fee) within the platform. These fees save you from having to have multiple bank accounts in multiple currencies. However, you may be able to integrate a TransferWise account into this as well. More about that in a future post
So far, the average net annual return for investors on the Mintos platform is over 12%, with more than 57,000 investors registered. Each investor has an average investment of over 4,000 Euro.
Mintos also has a secondary market, where people can buy or sell their part in a loan for a discount or a premium, allowing for you to achieve an even higher return.
Expected Returns from a Mintos P2P Investment Account
I have been investing in Mintos for a couple of months now, and you can see from my investment summary below the types of diversification, and types of regular payments you can get.
I have been careful with only using an amount that I was happy loosing. From the below picture, you can see that I have earnt an average of 16.3% so far investing in Euro p2p loans, and have earnt over 19% from investing in Georgian Lari (GEL) p2p loans. As you can see from the picture below I have created diversification by spreading out my loans into 70 or more different people per currency. If you have a loan that reaches 60 days without receiving a payment, you will get your money returned to you with the buyback guarantee supplied by the loan originator. As I always choose to invest with a buyback guarantee. Read more about what I look for in a loan, and how I reinvest my interest into high paying p2p loans.
It is important to do your own due diligence. Recently one of the loan originators, Eurocent, ran into problems. A Temporary Judicial Supervisor was appointed to verify the financial standing of the company and help with debt restructuring. More can be found on the Mintos website here.
If you use this Mintos link to sign up to Mintos, you will receive 1% bonus on your average daily invested amount within the first 90 days of registering!
Please note: Before investing in anything do your own due diligence and research. Nothing in this article is financial advice. Just one man trying to share his working and investing experiences!