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Loan Portfolio Update: March 2019
Loan Portfolio Update: March 2019
A month of ups and downs. My current thoughts of a few loan platforms

I was going to delay this month’s update to the 15th to include my hedge fund’s quarterly report, but there are quite a few things I’m itching to say about the loan portfolio, so I’ll just split the posts.

Loan Platforms: Distribution and Profit

(Click to enlarge on smartphone)

Mintos (review)

Loan supply has increased again, and interest rates are rallying. I’ve managed to optimise my portfolio to reach just 7.8% late loans (excluding grace period) and 12.12% weighted-average interest (up from around 11.9% last month), which is nice.

It seems that more and more countries are intent on limiting high-interest loans. This is especially problematic for loan originators on Mintos. So I’m already trying to include lower-APR loans in my portfolio, like ID Finance loans in Kazakhstan.

Over the past several weeks I’ve sent 3 messages to Mintos Support asking about upcoming loan regulations in Latvia. Still no response. I no longer care for their excuses, such disregard for investors in inexcusable.

Grupeer (mini-review)

Grupeer is rocking it this month with new development projects and loan originators. There are always available loans for investment, and my older loans are being repaid like clockwork.

“Minsk Development Project” is taking shape. I love seeing my money creating something in the real world! (Image Source: Grupeer)

The main thing Grupeer is missing is investors. Loans aren’t funded quickly, and I worry that originators will get tired of waiting. Grupeer is aware of this, and offers cashback bonuses for specific loans to attract more investors. These cashback bonuses are the reason for my abnormal gain this month. Honestly, I don’t understand how Grupeer isn’t booming with popularity yet.

If you decide to join, I’d really appreciate it if you use my referral signup link.

Deposit Delays and e-Money Transfers

Grupeer has recently had a problem with one of their deposit options, causing significant delays. This payment option has been removed, and investors’ funds have been reimbursed. For your information, both Grupeer and Mintos now accept e-money transfers from Transferwise Borderless accounts, allowing you to deposit funds directly, instantly and free of charge. Processing the deposit takes from a few hours to about 1 day.

Envestio (review)

Envestio was quite active this month, with 2 new borrowers, and several new projects from old borrowers (which, as you know, I’m not a fan of). Loans are still being funded in the blink of an eye, so you must have money waiting on the platform to get a chance to participate. I wasn’t fast enough, and suffered some cash drag. But I know of at least 2 upcoming projects which I hope to grab.

I was super excited to receive a significant affiliate bonus from Envestio this month, thanks to one of you guys. Very much appreciated! This bonus is included in the “Deposits” column of my profit table at the top of the post, so as not to be calculated as earned interest.

Lenndy (mini-review)

I joined Lenndy in February after being impressed with their transparency and loan stats. Since then I’ve been somewhat shocked to see all my loans miss their first payment date. Some were repaid after a short delay, but many are still late.

Lenndy‘s explanation is that some loans are repaid in batches, so a single late loan might delay a whole group of payments, which would eventually arrive all together. Investor earnings shouldn’t be affected, since every loan originator on Lenndy pays late interest. Even if that group payment arrives, I still won’t like the lack of clarity about individual loan status.

Now, if those loans remain late, that would truly be disappointing and worrying. So I’m waiting to see how my portfolio develops, but right now I’m very ambivalent about Lenndy, to say the least.

If you still decide to join, this signup link will get you €10 cashback on the first €100 you invest. I will also get a bonus.

Fast Invest (mini-review)

The new and anticipated Fast Invest website is up, and it’s pretty. The continued effort put in this platform helps mitigate the suspicion that it’s all a scam, but the new website doesn’t actually add transparency, which is what I’d been wishing for.

Their team assured me that an upcoming update will finally reveal loan status (probably only for your own loans, not the entire loan-book), but there’s still no news on revealing the names of their originators. And I don’t like the fact that they refuse to accept UK, Latvian and Lithuanian investors.

So far, Fast Invest’s main attractions were high interest rates and comfortable terms for investors. But interest rates are dropping: I haven’t seen a 15% loan in a while, and 13% loans are grabbed very quickly. This makes me wonder what incentive is left for investing in this platform, which still suffers from severe lack of transparency.

If you still decide to join, they have a new €10 bonus for those investing over €200 for at least 90 days. If you use my link I’ll also get a bonus.

Crowdestate (website)

This month has been slower than usual, with few new projects and not many repayments. One large and interesting project was actually cancelled when it failed to reach funding. I hope it’s just a temporary setback, and not turning into a pattern.

Bottom Line

This month’s overall return was not as impressive as last month‘s, due to fewer scheduled payments on Crowdestate, bad performance on Lenndy, and a lot of grace period loans on Mintos (I’m expecting a lot of payments tomorrow). It was still a decent month, and I’ve managed to deposit some more cash to boost returns for next month.

This post is not meant as investment counselling! I’m just a fellow investor sharing his thoughts and experiences.

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