11-26-2018, 11:01 PM
For years I've been intrigued by these p2p lending platforms. However I've always been way too skeptical, mainly because they have always been full of payday loans and similar, and we all know the financial status of most people using those. People with horrible finances loaning money at ridiculous interest rates in order to fund their spending habits... sounds way too dangerous. And I'm pretty much against the whole idea of ripping people off with atrocious interest rates.
But I just opened an account with Mintos. This one feels different. Why?
First of all, people don't put their own loans up here. It's companies that have already handed out loans that sell you a portion (they are obliged to keep a portion for themselves) of the loan. The majority of these loans come with a buyback guarantee, which means the company in question will buy back the full loan from you if there are no payments within 60 days. And the majority of the loans are backed with a decent collateral.
Currently I'm invested in a few auto loans from the baltic countries. Loans that have been paid in full without delay for the moment, with under 12 months remaining until maturity, all with the vehicle as collateral (with the value far exceeding the amount of debt outstanding). I'm picky about the ones I choose. Average interest rate for me: 9%
I'm steering away from the "personal loans" and sticking to auto because of the collateral. There are even some real estate deals (mainly home renovation loans with the real estate as collateral) but those come with a significantly lower interest rate.
Of course these are high risk investments. I would never put significant money into these, this is more of a thing I'm doing out of boredom. I'm interested in seeing where this goes. So far, so good.
Anyone have any experience with these?
But I just opened an account with Mintos. This one feels different. Why?
First of all, people don't put their own loans up here. It's companies that have already handed out loans that sell you a portion (they are obliged to keep a portion for themselves) of the loan. The majority of these loans come with a buyback guarantee, which means the company in question will buy back the full loan from you if there are no payments within 60 days. And the majority of the loans are backed with a decent collateral.
Currently I'm invested in a few auto loans from the baltic countries. Loans that have been paid in full without delay for the moment, with under 12 months remaining until maturity, all with the vehicle as collateral (with the value far exceeding the amount of debt outstanding). I'm picky about the ones I choose. Average interest rate for me: 9%
I'm steering away from the "personal loans" and sticking to auto because of the collateral. There are even some real estate deals (mainly home renovation loans with the real estate as collateral) but those come with a significantly lower interest rate.
Of course these are high risk investments. I would never put significant money into these, this is more of a thing I'm doing out of boredom. I'm interested in seeing where this goes. So far, so good.
Anyone have any experience with these?