Mintos interest rates drop

Funnily enough, the drama of interest rates dropping has happened many many times. For example with Twino this was an issue multiple times – they dropped interest rates and investors walked, then they increased the rates again but didn’t increase it to previous levels, so after a bit of turbulence, the rates ended up being slightly lower, the business was happy that the price of money supply was lower and the investors felt like their complaints were listened to (were they?)

With Mintos, we’re currently going through the interest drop turbulence again (second if not third time? maybe even fourth?). Once again though there is a big amount of investors who are surprised at *how* on earth the interest rates can be dropped, and threatening to walk.

Of course some investors will walk (if they have better options to invest), a very large amount will however be willing to invest at lower rates (as you can see from current statistics that is the case with Mintos).

The answer to the question of how the rates can be dropped is easy – supply and demand – there is a lot of money and not that many loans, meaning even lower rate loans get picked up.

This means that even if the money supply dries up a bit and originators increase the interest rates a bit, then they’ll likely never be as high as they used to be before.

Those who have been investing with Mintos for a while remember that at the start it was easy to have *only* 14% loans in your portfolio, the move to 12% loans has been gradual, and 11% loans have been tested for a while now (in mogo’s case).

Currently the primary market is at about 10-11% (and secondary market is cleared of 12%+ loans) and while the loans are moving slowly, then they are moving – the mogo buybacks have left investors with a lot of cash and the refer-a-friend campaign combined with the activate-automatic-strategy cashback campaign seem to be helping the cash flow.

So as is, investors have three options:

  1. Transfer money out and invest somewhere else (where?)
  2. Yield and invest the money into lower rate loans (to prevent cash drag)
  3. Wait and hope the interest rates bounce back (which they definitely might)

I’m currently a mix of 2-3. I am reinvesting some of the money, mostly picking up discount loans on the secondary market, and some 11,5-12% loans if I seem them on the primary market. I have been lucky though and not had that many mogo loans bought back so far, so I might have enough money locked in until the interest rates bounce back (I might have just jinxed myself and be hit with the next round of buybacks).

All in all – not much new, interest rates get tested all the time in P2P investing, been a while since it has happened on Mintos though but this is something that’s been talked about a long time – there is a serious push for interest rates to be lower (money supply from investors, longer histories for originators), and every now and then something like this is to be expected.

21 thoughts on “Mintos interest rates drop

  1. I think there is a lot p2p where you can get 12 % , gruper, peerberrry , robocash, viainvest (only 11%) and maybe more, I mentioned only which I am using

    1. It becomes a matter of risk though – you need to compare the originators to different portals – would you go in 50K into any of those?

  2. Thanks for your articles. Noticed it too as well as end of loan details in daily emails(came back this morning) to me it looks like mintos is getting more and more greedy and testing investors. but they are the biggest, the best i think i left bondora with big losses, viainvest and and viventor too, leaving twino. As you I am between 2 and 3, waiting and see. about georgian and russian i did it too but returns dropped a lot after the big increase in exchange rates in both ways.
    Also, i had the same strategy as having long mogo loans but stopped, maximum 3months now being able to leave quick if any sign of worrying or collapse, after all, is mintos as strong as that ?

    thank you again for the blog

    1. Not so much Mintos being greedy, but originators probably – Mintos makes rather similar amount of money probably whether investors get 12 or 13%, but for originators that one per cent either way is a pretty big difference. For Mintos it’s good if loan originators get cheaper money though (they’ll bring more loans into the portal), however investors do have a cut off point.. will see how low it is.

  3. Hi Kristi! I got hit hard as I had an portfolio of Mogo loans worth about 17 500 euros and now I have 9000 euros left :) As I haven’t found new loans that I’m happy with, I’m that investor who have chosen your 1st option – to transfer money out. Nothing to do but wait right now. Maybe rates will pick up again.

  4. It looks like the #3 option (wait & see) wasn’t a bad choice; right after you wrote this article, around two million euros worth of 13% loans from GetBucks became available. While it may not be the most solid originator available, it proves that lower interest rates aren’t a fatality !

    1. I think now originators have a good way of guaranteeing money – put up 13% loans and you’ll be sure to get it if you need it. Now, if many originators need money at the same time… then we’ll start seeing climbing rates again.

  5. I am more concerned with the low quality of the originators now joining Mintos. No track record, low equity to assets ratio etc. They need to bring on more experienced originators.

    I think there is a huge mispricing in Mintos right now, you can get quality loans from an experienced originator for the same yield as some brand new company just set up somewhere in Armenia.

    When the water goes down we will see that some of these new originators are swimming without underwear :)

    1. I do agree. The originators founded 2016+ just do not have the track records… This is why I have narrowed down the list of originators I consider down to about 8, with 3 being a bit more reliable. Others I don’t even look at, no matter the interest rate.

      1. Hi Kristi,
        Which originators are you currently considering? I tend to look at track record meaning since when the originator is operating and the % of current loans for the originator in the statistics page.

        What would be yours indicators to assess the health of a originator?

        1. History (how long they’ve been operating, volume os loans), any public/private bond offerings (extra due diligence done by third party), markets they operate by country (some markets I just know more about). If possible profit / loan default stats.

          1. That makes sense, especially the private bond one, like Mogo securing the private 50M bond and immediately decreasing interest rates offered on their loans, which just means they’re more financially healthy / resilient, which is good for the lender as in there is less interest being offered on the loan, but a decrease in associated risk, by Mogo having a third party providing additional funding.

            Would you be so kind as to share what in your opinion might be some of the better/more sturdy loan originators?

            1. I’ve looked more into Lendo, Banknote, Iute, Creditstar, Creamfinance, Getbucks, Placet. I’ve only invested a bit into those since I haven’t had a chance to do that much due diligence yet.

  6. Hello Kristi , it ‘s a real shame what happened in Mintos, but like many investors, investing only 10.5% is not acceptable to me. Other short-term platforms, such as Robocash or Viainvest, do not have enough capacity to have a significant amount invested or only offer a little more profitability, sometimes it happened to me that I had money stopped.

    So I started looking for an alternative and found an Estonian platform that I consider very interesting: Envestio.

    Envestio offers investors investment opportunities at the Premium level, offers bridge financing loans to owners of investment projects. At the moment, the main industries with which he works are real estate development, energy production, urban mining and the production of hardware for cryptocurrency mining. From what the support team has told me, they only accept projects from borrowers with a proven reputation and a solid commercial structure (they do not accept start-ups, small businesses, etc.).

    It has 5 active projects available , among which are one to 18% and another 22% in cryptocurrency hardware of which only 4 months remain. So part of what I had in Mintos I have invested in Envestio.

    As the first explorer of this investment platform I read all the information provided by your website (available at the moment in English and German). Everything is pretty well explained, with a wide FAQ section, details of each loan, legal details and presented the entire commercial address. One realizes that behind it there is a professional team, which has managed since it was a private investment fund to carry out such a number of completed projects, which helps the economy of many Estonian companies.

    The interest rates of the projects they are really interesting, currently being 17-22% per year, with a minimum investment of 100 euros. In Envestio we can invest in a guaranteed commercial loan, which means that, in case of default of the borrower, the commercial commitment and the personal guarantee of the beneficiary of the borrower will be used to cover the borrower’s obligations towards the investors.

    I sincerely believe that it is a good opportunity to diversify our investments and obtain a good return, since it is a platform young, where you can participate in projects without problems to be overcrowded as others.

    Also if you decide enroll and invest with Envestio to Through my reference link, ( ) You will get a € 5 bonus immediately when you deposit at least € 100. Y You will also receive a refund of 0.5% of all your investments during the first 270 days, or in other words for 9 months.

    I hope you like this contribution!

    1. With Envestio’s affiliate program I seriously question their business model – paying affiliate returns for 270 days??? How do they not go broke.

      1. Even though that platform is quite new, Envestio’s private investment fund has operated since 2014, so it functioned for 3,5 years before going public. The amount of completed projects shows they know what they’re doing. So they can perfectly fund all the bonuses they offer to their inverors

        The key distinction from many other crowd-investing and P2P platforms is that they are financing real business ventures that brings tangible added value to the economy, instead of simply refinancing personal loans.

        1. Santi, there are only 5 projects to invest in Envestio. Are you still having your money in there?

          1. Hi Stefan

            This type of platform is not like Mintos where it is invested mostly in personal loans, that is why they do not have

            So many loans are investments in projects. I see day to day how I have thousands of euros left without investing in Mintos, because more than 12% in the primary market there are hardly any loans, so I have changed my strategy and distributed enough of these amounts that I have taken out in the different projects of Envestio (especially in those with less term) and also in Grupeer.

            In addition there have been changes in the investment project “Construction of Modern” Slowfood “Street Market” (project ID EN018022). Envestio informs (as I indicated that it was negotiating) that it has been changed from the category “subordinated debt” to “guaranteed debt” maintaining the interest rate of 17% and offering a higher level of security to all users.

            You can see more about the project at

            In case you have not yet read the article about the envestio buyback and guaranteed between secured and subordinated debt you can find it here ( )

            Remember the welcome promotion : a bonus of € 5 immediately when you deposit at least € 100. And you will also receive a refund of 0.5% of all your investments during the first 270 days, or in other words for 9 months.

            Sorry for my english, because is not my country language.

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