If you’re looking for a way to diversify your investment portfolio, consider P2P lending. This asset class provides passive income that’s separate from your standard market driven investments. P2P lending takes place on the internet through P2P lending platforms, of which Mintos and Grupeer are the two strongest competitors.
One of the largest P2P lending platforms in Europe, Mintos has more than 233,000 investors spanning 68 different countries and they offer thousands of investment opportunities from around the world. To date, they’ve funded 22 million loans and more than 95% of their loans come with a buyback guarantee.
How Does Mintos Work?
Mintos offers investors the chance to invest in loans already funded by originators. After originators fund the loans, they list them in the Mintos marketplace where investors can invest as much money as they want into the loan. You can invest in multiple currencies and choose loan originators based on risk ratings provided by Mintos, which range from A+ (little risk) to D (high risk).
The Mintos marketplace is filled with offers of various types of loans including agricultural, car, invoice financing, business, mortgage, pawnbroking, and personal loans. Some loans in the Mintos marketplace also have a ‘buyback guarantee.’ The guarantee ensures that the loan originator will buy back the loan from the investor should the borrower default on the loan for more than 60 days. The loan originator buys the loan back at the outstanding principal balance amount plus accrued interest.
Mintos offers rates all across the board, starting at 6% and ranging up to 16%. During times of high loan volume, rates tend to hit 16% and taper off to 12% – 13% during slower times.
How to Become an Investor on Mintos?
The steps to become an investor on Mintos are simple:
- Register as an investor (takes less than 5 minutes)
- Transfer funds to your Mintos investor account
- Purchase your loans
- Receive principal and interest payments from borrowers each month, which you can then re-invest or transfer to your bank account
Mintos offers investors the following features:
- View the loan listings in one place, sorting by as many of the 14 filters you would like
- Set up auto-invest to take the work out of manually choosing investments that meet your criteria
- Sell your loans on the secondary market before maturity
- See all of your investments in one place on your dashboard
Is Mintos Safe?
As one of the largest P2P platforms in Europe, Mintos does take safety seriously. They require each borrower to have ‘skin in the game,’ or their own money invested. Many loans also carry the buyback guarantee which helps minimize your risks. Of course, every investment has risks, though, which is why doing your own research is important before investing.
Grupeer is another large P2P lending platform in Europe. Grupeer has 22,164 investors spanning 91 different countries and has more than €47 013 051 invested this year. Grupeer specializes in secured business loans, loans financing development projects, and buying a square meter in a development project to earn rents.
How Does Grupeer Work?
Like Mintos, Grupeer offers the chance to invest in loans already funded by originators, but Grupeer calls them Deal Partners. You purchase a share of the loan based on how much you want to invest. You conduct all transactions through the Grupeer platform and you choose your investments based on the loan originators’ rating as well as the individual loan details include the rate of return and term.
Just as Mintos, Grupeer loans have a buyback guarantee. However, every loan on Grupeer has the guarantee, not just certain loans. The guarantee is the same, though, if the borrower doesn’t make a payment for more than 60 days, the originator will buy your portion of the loan back.
How to Become an Investor on Grupeer?
Grupeer offers the following features:
- Trustworthy screening model that decreases your risk and increases your profits
- An auto-invest option to make investing in your desired investments easier and faster
- Earn referral commissions on any investments your referrals make on Grupeer
- Investor protection, namely all borrowers must have ‘skin in the game’
- See all transactions in your user profile for easy tracking
Is Grupeer Safe?
While Grupeer offers its buyback promise and its previous investors have made decent profits, there’s no guarantee. Any time you invest in any investment, you put your money at risk. Grupeer has been in business since 2016, and they put all originators through a rigorous vetting process, but no investment is risk-free.
When comparing Mintos vs Grupeer – you are looking at two similar P2P platforms, but there are some differences. While both platforms are strong contenders, Mintos comes out the winner thanks to its larger platform and proven track record. Mintos also has the advantage of a secondary market and a bit more transparency than Grupeer offers. However, Grupeer offers more different types of investments.
It’s a good idea to diversify your investments across multiple platforms and investment types to avoid putting all of your eggs in one basket. Neither platform has a minimum investment requirement or charges fees, giving you plenty of options when investing in P2P loans.