This post is also available in: Deutsch (German)
It was foreseeable that my really high Mintos return of over 20% would drop at some point. It happened and lies now a little shy of 18%, what is still very appealing.
What are the reasons for this reset?
There are three main reasons. Firstly, the bargains on the secondary market are very limited, and very hard to get respectively. Secondly, the supply of short term loans was too slight, and therefor I was unable to invest all my liquidity there. Last but not least, a trade on the secondary market went bad and hit my return (You win some, you lose some 😉 ). In the end these three factors caused the decrease in my return. Due to the circumstances I am bound to invest more passively at the moment.
Higher interest rates
For some time the loan supply did not look that promising at Mintos. Mogo car loans only yielded with 10.5%, short term consumer loans peaked at 11.1%. Luckily the luck seems to have turned (as other times in the past). Mogo car loans are now offered at 13% (or slightly more for longer terms) and there are new loan originators. The newest addition is Albanian short term loan provider luteCredit which offers loans with 13.5% at the moment. The duration is with about one year somewhat longer compared to other loans, but for this return I am willing to take chances. Hopefully this situation remains as it is for a longer period 😉
Most Investors from Germany
I received some info about the Mintos investors. Most investors come from Germany and are followed by Czechs and Spaniards. Germans like car loans (37% of total investments), personal loans (27%) and short term loans (24%). So more then half (27 + 24 = 51%) of the Germans investments are in consumer loans.
Referral Scheme / Cashback / Promo Code
At the moment there is a refer a friend scheme in place which (valid until July 7th). Sign up and write this code FDQ1DL into the field „promo code“. This will pay you 1% cashback on your invested money for the first three months. If you read this post after expiration, you can still benefit from the 1% offer by registering through this link. This is the more elegant way, as you don’t need to fill in any promo code.
If you have questions, don’t hesitate to contact me.