Not feeling that great about mintos anymore

I mentioned I was pretty happy with mintos about a month ago, and a lot changed since then. I found out a guarantee on mintos is not insurance, it’s just saying that the lending company should pay off the borrower if he is unable to do monthly payments. But if the lending company goes bankrupt, their guarantee is useless.

That was a big surprise to me, in December I got a nice chunk of money from some affiliate networks and I transferred it to mintos right away. Few days after I realized the guarantee is not what I expected. (thanks mintos for explaining the guarantee in the article). I no longer feel safe with these p2p lending investments. It’s a very risky income that I can not rely on for my retirement. I don’t know these lending companies and for what its worth, they might be just a Ponzi scheme to earn some money. So I think I would be better off investing in stocks, where I am the shareholder of underlying assets.

Apart from learning about guarantee, XIRR on mintos lowered from 10.30% to 10.13% in the past month and a half.

I also noticed over half of the loans are due. This never happened before and is a bit troubling. Here is the current ratio of current and late loans. It looked like this a quarter ago.

I am a bit worried, I wanted to have 3 pillars for my future passive income – stocks, p2p lending, and probably some lending through cryptocurrencies.

Right now I will have to replace p2p lending with something less risky. Probably real estate.

Even with all mentioned above, I am still keeping my money in mintos, will watch closely if those late loans will be paid back and what will XIRR look like. Hope mintos is doing it’s homework with lending companies.

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