Review After 24 Month of Investing in Peer to Peer Lending

| Personal finance | 11 seen

I've been investing in peer to peer lending marketplace since the beginning of 2017, or it has been already 24 months or two years since I've been exposing my funds to this Latvian fintech platform. 

In the past 24 months I've made a nice revenue of EUR 902.57 (before tax) and in today's article, I decided to share a quick overview for the past two years and also make a quick glimpse for my plans for 2019

Both individuals and entities can invest through Mintos. Individual investors must be at least 18 years old, have a bank account in the European Union or third countries currently considered to have AML/CFT systems equivalent to the EU, and have their identity successfully verified by Mintos. At the moment, US citizens or taxpayers cannot register as investors at Mintos.

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Remember - investments are risky, never invest more you can afford to lose.

Background - I first heard about this Latvian fintech at the start of 2016, one thing that made it attractive to me was an option to lend in Georgia (the country I've been living since 2011). As been familiar with overall Georgian economy and the fact that so-called fast credits are very popular among Georgian population, just oblivious I did it find appealing to monetize on it somehow. And Mintos seemed like a plan. See: Invest in Georgia - Peer-to-Peer (P2P) lending -

Make sure to check out my previous review about investing with after 12 months: Review After 12 Month of Investing in Peer to Peer Lending

At the end of 2018, took the second largest position (after stocks) in my portfolio with 23.3% of my funds invested on marketplace.

Investment portfolio structure at the end of 2018

Investment portfolio structure at the end of 2018

Learn more: 2018 in Review and Financial Goals for 2019

The overall impact on the total portfolio for Mintos has decreased from 27.7% in December 2017 to 23.3 % in December 2018. And I'm glad. The reason is simple:

  • My investment portfolio started just in 2017
  • I have diversified it in Stocks, mutual fund, crypto, cash and peer to peer lending

A diversified portfolio helps. Never put all eggs in one basket, as they say. 

23.3% seems to be a kind of save level to be exposed in peer to peer lending, but in fact, I would love to limit this number to 20% in 2019, meanwhile by increasing total amount lent via peer to peer lending.

Despite being just second in size Mintos, have been the top earner in terms of dividend income (loan repayment) in 2018, in a passive income earning me EUR 591.14 or EUR 1.61 daily. Dividend income from the Baltic stocks earned me  €386.56 or EUR 1.06 daily. 

Learn more: Dividend Income

About interest earned on

During the past 24 months, I've invested in total EUR 3,988.81 and have made a profit from interest payments  EUR 902.55. That would be to about 30% yield over the past two years. In 2017 the yield was 7.94%, while in 2018 I  managed to get it 14.82%. This number is higher than average excepted around ~11-12% annual rate because I keep investing about a half of the amount in Georgian Lari loans (they come offer 16%-17% yield, but for a long time in 2018 were at 18%)

Monthly income from 2017-2018

Monthly income from 2017-2018

Unfortunately, because of I keep investing both in EUR and GEL currencies and because of currency exchange rates, the total value for my investment if converted back to EUR currency at the end of 2018, equals just to EUR 3,861.06, which is a negative -3.2% value growth.  Be cautious when investing in international currencies. contributes regularly to my dividend income with little over than EUR 40/mo, and I'm looking to increase interest earned here to about EUR 50, during 2019.

Withdrawing money and paying taxes

During 2018 I have withdrawn money from peer to peer marketplace several times, to finance new purchases on Nasdaq Baltics or NY stock exchanges  I most times money arrived at the bank account in one-two working days. 

Withdrawing funds from

Withdrawing funds from

Now, from money earned on platform I should pay taxes, luckily the platform offers simple tax guidance for the citizens of Latvia, Germany, and other countries.

Tax reports for private individuals - residents of Estonia, Germany, and Latvia are available. Tax reports for 2018 for Germany and Estonia will be available from January 11, 2019. For investors from other countries, a general tax report template is available. To receive your tax report, please select your country of residence and it will be sent to your email shortly. Due to various accounting standards applied by legal entities, there is no specific report for legal entities. Please consult with your accountant on how income generated through Mintos should be recognized and how taxes should be calculated.

I requested my Tax Report, which was shortly emailed, and for 2018 seems I need to pay a tax from EUR 235.22 and GEL 1086.55 . According to the Latvian Tax system I might have to pay 23% income tax. Which would mean I've to pay in tax EUR 54 and  GEL 250.  As I'm not a tax advisor, I cannot comment much on here, for further questions and your situation please consult your tax advisor!

About Auto Invest

Despite Auto Invest works like a charm, in 2018 I've disabled it and now I'm doing all investments manually, as I like to keep a hand on the pulse.  

Auto investing on platform

Auto investing on platform

Auto Invest automatically implements your chosen investment strategy. After you have entered your investment criteria, Auto Invest will automatically invest in suitable loans. You can access Auto Invest at any time and follow your portfolio activity in real time to make sure it is working according to your investment goals. Auto Invest is a very efficient tool for saving time spent on investing activities. It also allows you to access newly placed loans in the system before manually-made investments.

You can pause or cancel Auto Invest at any time.

Once you have confirmed your investment criteria, Auto Invest will review loan listings and invest funds in loans that meet your preferences. Auto Invest will continue to automatically analyze and invest in suitable new loans as soon as they are listed. If you change any Auto Invest setting, all available loan listings will be rechecked to make sure they meet your investment criteria.