How do you select the best Mintos loan originators when investing in P2P platform Mintos? I asked myself the same question, so I made a list for you to help you select the loan originators to invest in.
Last update: November 24, 2019
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What did I look at?
Since I started investing on Mintos, I have been reading a lot about the platform and tried to figure out what the best investment strategy is. Which loan originators do I have to avoid and which ones are good and solid?
To answer this question, I looked at a couple of different things:
- The ratings of Mintos loan originators from ExploreP2P
- The ratings of Mintos loan originators from Mintos itself
- Does the loan originator offer a buyback guarantee on it’s loans
- Does the loan originator pay interest on late loans
- Loan originators with a grace period of max 10 days
- The average interest rates the Mintos loan originators offer
Explore P2P ratings
ExploreP2P has rated all Mintos loan originators according to different things, like their financial reports. It’s very informative and looks like a very solid rating. That’s why I use their rating as well to decide which loan originators I would like to invest in.
Mintos loan originators ratings
Mintos has 10 different ratings, from A+ to D. Since I don’t like to invest in loan originators with too much risk, I only include loan originators with a low to moderate risk. (Explanation about the Mintos ratings can be found here).
I don’t invest in loans without a buyback guarantee.
The risk is a bit lower with this guarantee, as all loans that are 60 days late, will be bought back by the loan originator and I will get my money plus accrued interest instead of losing my money.
Of course it doesn’t make investing risk-free as the loan originator or the platform itself can still default and the buyback guarantee won’t be worth much at that point.
Interest Income on Delayed Payments
Since I want to receive interest on my late loans, I usually exclude loan originators that don’t pay interest income on late loans. There are some exceptions, like Mogo as they have a good track record and seem like solid loan originators.
Mogo does have a penalty income on delayed payments, which also covers some of the interest on late loans. In the end it’s up to you if you want to invest in them or not.
The grace period
Since the grace period doesn’t count as being late, you don’t get any interest over this period (unless a loan goes from grace period to late, then all days do count as late).
I personally don’t want to invest in loan originators that have a grace period of more than 10 days.
The average interest rates
The returns from loan originators differ a lot. I always look for higher returns without investing in loan originators that are too risky. The table is by default sorted by highest interest rate.
The average interest rates are not only for EUR loans, but also for the loans in other currencies.
Combining everything, I made a list of the Mintos loan originators I feel comfortable investing in.
|67||B||Yes||Yes/No||0 - 9||11.4%|
|Mogo||79||A||Yes/No||No||0 - 4||11.3%|
|ID Finance||78||B||Yes||Yes||0 - 3||11.1%|
|Credit Star||79||B||Yes||Yes||0 - 3||11.0%|
|Placet Group||71||A-/B+||Yes||Yes||0 - 2||8.5%|
Hopefully you can use this list to your advantage. I will try to keep this list up to date. If you see anything that is incorrect or missing, please leave a comment below and I will update the list accordingly.
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