09-10-2021, 02:59 AM
How I made more than 10% annual profit using microloans
<!-- SC_OFF --><div class="md"><p>Hi everyone!</p> <p>I would like to tell you about my experience of investing in P2P lending platforms.</p> <p>During my studies in the EU, my fellow students introduced me to the investments in P2P lending platforms.</p> <p>2019 was the year of the lowest interest rates on deposits in the EU- fluctuated around 0.5-1% per annum, and this has been around for more than 2 years.</p> <p>While all of them were receiving interest rates 20 times higher than in banks.</p> <p>Everything got to the point that my fellow students, being EU citizens, began to take loans in banks and invest these funds in these microloans.</p> <p>Sounds crazy, but it works for now.</p> <p>I decided to try.</p> <p>Having invested 8K, in 18 months I received 1258 Euros of income, which amounted to about 10.5% per annum.</p> <p>After moving back to the United States, I discovered new opportunities with Prosper.</p> <p>It was a terrible experience.</p> <p>On Mintos, I was not limited in the amount of investment, and most importantly, I did not have any time limits, since the vast majority of loans were microloans for a short period (up to 2 months).</p> <p>But in Prosper, you could invest for a period starting from 36 months, and the fee could reach up to 2%, in Mintos it is fixed at 0.85%.</p> <p>In the end, I was refused because I could not show my gross income over 80.000 $ Plus.</p> <p>Also, there was no secondary market on Prosper where you could quickly and with a premium resell your investment.</p> <p>Fortunately, I still have a European SEPA bank account in Euros and continue to invest in Mintos.</p> <p>Of course, the system is not perfect:</p> <p>1) You can earn more than 12% (the maximum that can be earned on the platform is 30% per annum), but then you get into loans with a rating of C- and below, and defaults can sometimes reach more than 30%.</p> <p>After all, the risk is all yours!</p> <p>2) When transferring money to a European bank from the United States, after I left the EU, I had slight difficulties.</p> <p>My payment was frozen by the bank due to suspected money laundering. I had to submit documents on the origin of money through the Bank of America, and explain why, being in the USA and being a US citizen, I transfer money to a European bank, and for what purposes it will be used. It is good that they did not demand to obtain a license for investment activities.</p> <p>3) When converting from Dollars to Euros and from Euros to Dollars, you have to lose up to 4%.</p> <p>From now on, I intend to increase my investment to 20K dollars, I will continue to invest in Mintos, and also try a new platform that uses crypt and promises interest rates two times higher than the European one. </p> <p>I will try to write monthly reports.</p> <p>If someone has a similar investing experience - let's share.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Polite_Poet_alysis_"> /u/Polite_Poet_alysis_ </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/pkuoks/how_i_made_more_than_10_annual_profit_using/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/pkuoks/how_i_made_more_than_10_annual_profit_using/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Hi everyone!</p> <p>I would like to tell you about my experience of investing in P2P lending platforms.</p> <p>During my studies in the EU, my fellow students introduced me to the investments in P2P lending platforms.</p> <p>2019 was the year of the lowest interest rates on deposits in the EU- fluctuated around 0.5-1% per annum, and this has been around for more than 2 years.</p> <p>While all of them were receiving interest rates 20 times higher than in banks.</p> <p>Everything got to the point that my fellow students, being EU citizens, began to take loans in banks and invest these funds in these microloans.</p> <p>Sounds crazy, but it works for now.</p> <p>I decided to try.</p> <p>Having invested 8K, in 18 months I received 1258 Euros of income, which amounted to about 10.5% per annum.</p> <p>After moving back to the United States, I discovered new opportunities with Prosper.</p> <p>It was a terrible experience.</p> <p>On Mintos, I was not limited in the amount of investment, and most importantly, I did not have any time limits, since the vast majority of loans were microloans for a short period (up to 2 months).</p> <p>But in Prosper, you could invest for a period starting from 36 months, and the fee could reach up to 2%, in Mintos it is fixed at 0.85%.</p> <p>In the end, I was refused because I could not show my gross income over 80.000 $ Plus.</p> <p>Also, there was no secondary market on Prosper where you could quickly and with a premium resell your investment.</p> <p>Fortunately, I still have a European SEPA bank account in Euros and continue to invest in Mintos.</p> <p>Of course, the system is not perfect:</p> <p>1) You can earn more than 12% (the maximum that can be earned on the platform is 30% per annum), but then you get into loans with a rating of C- and below, and defaults can sometimes reach more than 30%.</p> <p>After all, the risk is all yours!</p> <p>2) When transferring money to a European bank from the United States, after I left the EU, I had slight difficulties.</p> <p>My payment was frozen by the bank due to suspected money laundering. I had to submit documents on the origin of money through the Bank of America, and explain why, being in the USA and being a US citizen, I transfer money to a European bank, and for what purposes it will be used. It is good that they did not demand to obtain a license for investment activities.</p> <p>3) When converting from Dollars to Euros and from Euros to Dollars, you have to lose up to 4%.</p> <p>From now on, I intend to increase my investment to 20K dollars, I will continue to invest in Mintos, and also try a new platform that uses crypt and promises interest rates two times higher than the European one. </p> <p>I will try to write monthly reports.</p> <p>If someone has a similar investing experience - let's share.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Polite_Poet_alysis_"> /u/Polite_Poet_alysis_ </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/pkuoks/how_i_made_more_than_10_annual_profit_using/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/pkuoks/how_i_made_more_than_10_annual_profit_using/">[comments]</a></span>Kind Regards R