July and August were tough months for the peer to peer lending industry in China. This also partially reflected in the loan portfolio on Mintos for a very brief period, when interest rates dropped from a whopping 13-14% to a meager 5-9%. Luckily for us, Mintos recovered for the most part as interest rates are hovering around 10-11% once again. If we will ever see the previous high interest rates again remains a question to be answered as other peer to peer lending platforms such as Grupeer, PeerBerry, BulkEstate, CrowdEstate and Twino also keep lowering their interest rates slightly.
Note that their IT infrastructure synchronizes with loan originator once per day, so it’s possible the actual statistics may be different. It is worth mentioning however that EBV Finance performs exceptionally well, so does LeaseLink.
There are two bad performing outliers 1pm and Credisssimo which have no outstanding loans on the Mintos Marketplace at the time of writing and was given a Mintos A-rating. Then we have a few other below average performing loan originators hovering around 60%. It looks like most other loan originators have about 80% of their portfolio being paid on-time.
Note that the performance below doesn’t necessarily indicate that their financials are bad. But it is still something you want to keep in mind the moment the buyback guarantee no longer can be honored.
If we take the chart above, and we run the same query for loans with an issue date of at least 1 month ago, we get the results below.
The results are a little bit shocking to say the least. Take short-term loan originators such as Varks, Kuki and Kredit24 with a grain of salt as the issue date was at least 1 month ago. This means we will probably only have late short-term loans in the result set.
Currently, only 1pm is active in the United Kingdom, which attributed to the negative results below.
Other than that, only Colombia and Mexico are noteworthy outliers at ~60%. CrediLikeMe and RapiCredit are both active in these two countries.
The United Stated Dollar is the best performing currency, currently only GetBucks is offering loans there, which is unfortunate considered the importance. My bank ‘Alliant Credit Union’ in the United States is currently offering interest rates of 2% as a reference.
And for loan types, invoice financing are the best performing loans while pawnbroking loans are the worst.
Short-term loans are also slightly riskier followed by car loans, although we believe slightly older car loans with some successful payments may actually be better performing. Some borrowers may not account for repairs when buying a used car, hence being behind on payments.
Things get more interesting when we filter out the more recently issued loans. So we only include loans with an issue date of at least 1 month ago. Invoice financing is the best loan type, most likely because of EBV Finance. Take the short-term loans with a grain of salt again, as these may only contain the late loans as they are generally less than 1 month in length.
At Fabulous Life Adventures, we are currently also exploring Fast Invest, we are currently awaiting identity verification for 4 days, which might be because of All Saints’ Day.
You can also read our complete review and guide of Mintos here if you are interested to learn more.