Today I try to describe the differences between Mintos, Bondora, IUVO and Estateguru.
I will try to define which is for me the best peer to peer lending tool among the four, not only Mintos Vs. Bondora.
I’ve been using them all for years, I’m aware of the risks but they’re doing very well for now.
Let me explain the differences and advantages of these 4 peer to peer lending and whether Mintos or Bondora or IUVO or Estateguru is better.
Table of Contents
Mintos is much larger than the other 3, that’s the first difference.
If I want to invest in the most popular tool, then Mintos is my choice.
How does Mintos work in 2 words?
First things first, Mintos doesn’t grant loans of its own, it just acts as an intermediary.
When I invest with Mintos I have access to a huge number of loans that have been granted all over the world. Mintos makes me “meet” with its “loan originators”, credit agencies that offer loans to people and also businesses.
The success of Mintos has been linked to the invention/application of a guarantee system that suits most investors. It is called “buyback Guarantee”. This system forces Lenders to buy back loans that are 60 days overdue.
So this is how I am protected as an investor:
- I buy loans covered by buyback
- 65% of loans on average have no problems
- 35% can be late >60 days
- Mintos requires the lenders to buy back the late loans.
It works for now. Only a few lenders have not honoured this promise.
In an ideal world I am never delayed and only have regular loans.
In the real world, it is better for lenders to buy back loans because they have immense profit margins.
In essence Mintos is a “marketplace of loans”. Bondora instead is a large loan originator.
Just as on Amazon I find shops and companies that sell their products on the Amazon website, so Mintos serves their loans in an orderly and pseudo-guaranteed way.
How to use Mintos:
- Invest & Access (10% fully automatic)
- Custom strategy (automatic but more precise)
Mintos Pro & cons:
- Advantages: Huge, reliable, profitable
- Disadvantages: Some small lenders are not reliable
The greatest thing about Mintos?
The “conservative” investment & access because it is easy to use.
Now let’s move on to Bondora…
One of the first peer to peer lending in Europe was Bondora.
So, starting from the principle that things that last a long time tend to last even longer (Lindy effect for Nassim Taleb) then Bondora is one of the safest P2P lending. Since 100% safety does not exist I am interested anyway.
Bondora started business in 2009, it is also profitable, this is a good sign, but the risks remain, as with all P2P lending platforms.
What does Bondora do in 3 words?
It directly grants 100% of its loans online (it has no physical location) through a proprietary algorithm. They developed the software themselves and can figure out whether or not the applicant has what it takes in a few minutes.
Basically, Bondora has no major expenses and, crazy enough, he also earns money from bad loans.
- earns money when issuing a loan
- then earns a percentage of the instalments
- and then earns even if the loans go late
It has its own debt collection office working at full capacity.
The profit margins are big.
Take for example the very popular “go & grow” system.
It’s plain brilliant (but not 100% risk-free)
Millions of investors in Europe could invest in loans hands-off. The 6.75% capped offer is a real treat for all of us. There’s no need to think about anything (except Bondora’s solvency as a company) and the money is immediately available. I test myself and cashed my money in 1 day.
So Bondora offers loans that pay as much as 50%, takes the risk and leaves investors “only” 6.75% interest and the possibility of exiting the investment immediately and without any additional fee. It sound rather sustainable.
So far all this has proved to be sustainable and has gone through one of the most shocking economic crises in decades almost unscathed.
So better Go & Grow or the other portfolios?
For me? Both.
How to use Bondora:
- Go & Grow (6.75% fully automatic, very easy)
- Portfolio Manager (approx. 10%, automatic, easy)
- Portfolio Pro (approx. 10%, high precision, medium easy)
Bondora Pro & cons:
- Advantages: Antique, highly profitable, really easy to use, in Italian 🇮🇹
- Disadvantages: Geographically limited to 3 countries
The greatest thing about Bondora?
The go & grow 6.75% for ease of use (read the best Bondora review)
Now we move on to IUVO…
IUVO is big, reliable and growing so it can be compared to Mintos and Bondora here. They have funded loans for 140M€ as today.
This is a platform with registered office in Estonia, opened in 2016, active in the p2p consumer loan market. It started its business in Bulgaria and then expanded to Poland, Romania, Spain and Georgia.
All loans on IUVO are covered by the buyback guarantee. It comes into play after 16, 30 or 60 days of delay, depending on terms.
Currently 8 lenders from 5 different countries offer their loans on IUVO.
Their business model is undoubtedly similar to that of mintos. IUVO does not have loans of its own as Bondora does.
How to use IUVO:
On IUVO there is a common self-invest that works well. There is also the opportunity to invest in different currencies of the euro but this is always a risky operation. Investing in foreign currencies adds a layer of uncontrollable complexity to the already risky investment in loans.
Loans in euros already make enough money and there is no need to be greedy.
Pro & cons:
- Advantages: Old enough and solid with a big financial group behind.
- Disadvantages: Similar to other P2P platforms (but great alternative/complement to Mintos)
Now let’s move on to Estateguru…
This comparison between Estateguru, Mintos, IUVO and Bondora is forced.
Estateguru doesn’t have much in common with the other 3. It is a real estate crowdlending tool, but it couldn’t be missing.
In theory what Estateguru does is presumably “safer”. The reason for this is that all loans on Estateguru are secured by real estate.
What does Estateguru do in 2 words?
Well, it is much simpler than expected.
Estateguru works in the same way as Mintos, it is therefore a Marketplace.
Estateguru does not issue loans of any kind, has none and offers no guarantees of its own.
Its task is to connect real estate loans and private investors. So builders and construction companies of a certain size turn to Estateguru as they would to a bank. They submit a business plan of a real estate project, Estateguru’s specialists analyse it and decide under what conditions it will be published and served to investors.
The fact that all loans on Estateguru must have a solid property as collateral is working very well. So well that in reality it hardly ever comes to the sale of the property to pay investors back. The Estateguru team is proving to be able to resolve any delays and disputes in record time.
How to use Estateguru:
- Manual (12%, every time they publish a loan I decide whether to invest)
- Autoinvest (12%, automatic)
Estateguru Pro & cons:
- Advantages: Solid, antique, highly profitable (12%)
- Disadvantages: Less quantity of loans compared the the other 3 tools
Crowdestate, EVO Estate
The greatest thing about Estateguru?
The serenity of real estate as collateral for loans
Now let’s see who won…
- ⭕️ Housers review 🏡 (I am NOT investing) risks and alternatives
- ⭕️ Bondora Review 2021 after 5 years [video-setup]＋12%
- ⭕️ Bondora Portfolio Pro: How it works + resist temptation + Video 2021
- Would you invest €1 million in Grupeer? Interview with Grupeer CEO Alla Kisika
Conclusions and winner
I am about to disappoint you...
There is not an absolute winner among these 4 peer to peer lending.
I use them all in synergy because I want to diversificate.
- However, if I had to choose just one, that one would be Mintos.
- Estateguru, for its part, is super efficient and has a team of professionals that inspires confidence.
- Bondora has its advantages because it has an extremely light and flexible structure that has been working smoothly already for 12 years.
- IUVO is excellent (12%) and has a good performance so far.
Which investors are best suited to these P2P?
Everyone has their own profile. Let’s see them one by one:
- Everyone likes Mintos. It is suitable for large and small investors and it has 1 nice hands-free automation (the Conservative profile is my best).
- Bondora Go & Grow automation is popular among people who want to invest inlays without any commitment. 1 click investing, no questions and 6,75%.
- The ideal IUVO user is someone that wants to avoid Mintos or someone who needs to add an additional P2P tool to his loan investments. In both cases IUVO is a perfect fit.
- Estateguru reviews are all extremely good. Let’s say that normally all this consensus would scare me. But I am an happy user, so I can confirm the enthusiasm.
And what about the 2 most popular automated P2P investments… the “Bondora Go & Grow” versus “Mintos Invest & access“?
Which is the best?
Well, in this case too I would say “both. The reason is always that of diversification.
As already explained, the Bondora Go & Grow 6.75% really provides immediate liquidity, while the Mintos Invest & access only up to a certain percentage of the invested amount.
The advantage of the Mintos invest & access is that its solvency is not only linked to one company.
If you want to go deeper, forget about me and visit the four sites in question in person.
If that’s not enough this read “Mintos Vs. Bondora” you can consult my comparison table of the various P2P lending and real estate crowdfunding platforms.
Some time ago I also prepared my own ranking of the best P2P lending in Europe that goes beyond comparing Mintos or Bondora.
Now tell me what you think.
What is your favourite peer to peer lending and why…
If you haven’t tried any of these, what’s the reason?
Fear? Lack of confidence? Lack of time?
- Mintos alternatives? My 7 sexiest picks ✔️?
- Is P2P Lending safe? A daring investment risk comparison
- Iban Wallet Review [⚠️Beware]
- 7 Best peer-to-peer lending Europe 2021 ⭕️ ranked for Safety & Yield
- Bondora Go & Grow Review 6,75%* 🌱(almost, but NOT) risk free. Alternatives?
- ⭕️ Bondora Portfolio Pro: How it works + resist temptation + Video 2021
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