How It Works
Mintos is a peer-to-peer lending marketplace where investors go to invest in loans originated by non-bank loan originators. At Mintos, investors can invest in different types of loans originated by many different loan originators. On the other hand, by connecting to the Mintos marketplace, loan originators that have traditionally been balance sheet lenders can reap the benefits of the peer-to-peer lending model in funding their loans.
This is how it works:
- Borrowers apply for a loan at the loan originator.
- The loan originator evaluates the application, sets an interest rate and lends money from its own funds.
- The loans are then listed on the Mintos marketplace, where both individuals and institutional investors can select loans to invest in, thereafter receiving monthly principal and interest payments*.
* By investing in a loan, investors are buying claim rights against a borrower based on the assignment agreement. Neither Mintos nor the loan originator is responsible for a borrower failing to service the loan, including for late payments. In the case that a borrower is unable to repay the loan, investors may lose some or all of their invested capital.