Lower Interest Rates on Mintos

You may have noticed that interest rates dropped significantly on Mintos in August. This is especially true for loan types with higher interest rates like short-term loans, car loans, and personal loans.

If you look at the loan book, it looks like there has been huge repricing happening in August. In the picture below there is total loan amount by month and interest rate bin (by 2 points) for all EUR loans with buyback guarantee with rating better than C and only car loans, personal loans, and short-term loans.

What is visible is that month-over month (July to August) most of the interest rates dropped by one bin (2%). While this might be driven by lower demand I am more inclined to believe that Mintos is trying to push their margin up by lowering interest income for investors.

Added Funds to Mintos

Today I added additional ~ 19,000 EUR to Mintos, bringing overall invested funds to 145,000 EUR. This is because I have high confidence in Mintos business model. Currently, I have 25% of my liquid assets on Mintos platform. Mintos brings me reasonable revenues, and represents stable counterpart to my USD stock investment portfolio. I really believe and hope that Mintos will be around for next 10-20 years.

Dineo – new lender on Mintos

One of the loan originators who will be among the first additions to the Mintos marketplace in 2019 is Dineo, a company based in Spain. Founded in 2014, Dineo now offers short-term loans for investment and you can expect a net annual return of up to 10%.

Ever since its inception, Dineo has experienced exponential growth. From its foundation, the company has achieved a consistent increase in the number of new customers and stable portfolio growth. By October 2018, the company had more than 170,000 clients to whom they have issued more than 827,000 loans.

Dineo operates through its website www.dineo.es and via its more than 70 points of customer service throughout Spain, where loans can be granted and disbursed at the time when clients meet all the necessary requirements.

Spain-issued short-term loans placed on the marketplace by Dineo range from EUR 50 to EUR 500. The average loan term is 5 to 30 days and loans are repaid in a single instalment.

All loans placed on Mintos by Dineo are secured with a buyback guarantee and will be repurchased if they are delinquent for 60 days or more. In addition, the company will keep 15% of each loan on its balance sheet to maintain its skin in the game.

A loan originator with confidence

Dineo views their physical presence across the country as one of their strengths. This is because the process is client-friendly, brings transparency to the transactions and adds to the customer’s satisfaction as they are able to receive the loan in cash instantly.

To investors on the Mintos marketplace, according to Dineo, it will offer “an interest rate which is competitive and hence will move as the market does.” The initial net annual return rate will be 10%. At Dineo, they are confident about giving Mintos’ investors “peace of mind” which will come from the company’s track record and reputation.

As of October  2018, the net loan portfolio of Dineo is EUR 6.6 million, equity is EUR 3 million, and the gross loan portfolio is EUR 14.4 million.

Dineo’s creditworthiness

Dineo makes strict controls to guarantee its solvency. The company is doing check-ups every time a client performs a new operation to ensure that the situation remains optimal. Alongside checking the payment capacity of their clients, the company also addresses queries to the bureaus for credit. If the client has problems with the payment, Dineo proposes formulas for agreements to help the client plan their payments and settle their debt.

Mintos – about visibility and credibility

About joining Mintos, the global marketplace for loans, Carmen Gayo , the Manager of Dineo says: “Mintos is a marketplace that allows the lender to monetise part of the amount invested, and in addition, the marketplace helps to give visibility to the business and the brand. Having a presence on Mintos guarantees to the investor that a series of controls have been approved, and this also helps to give credibility to the business.” 

Dineo - short term loans in Spain
Dineo – short term loans in Spain

As of 2/4/2019 there are no loans from Dineo on Mintos, I will check later.