Minterest Crowdfunding Platform - Review for Investors
Minterest Crowdfunding Platform - Review for Investors
ValueChampion Rating 
Pros
- Investors seeking a low-fee crowdfunding platform
Cons
- Individuals seeking to make long-term investments
Minterest is great, low-fee, option for individuals seeking short-term crowdfunding investments. The platform charges a competitive 15% on all interest earned and its crowdsourced loans have lower than average default rates. The significant drawback of the platform is that it does not offer long-term investments. However, for short-term investors, Minterest proves to be one of the best P2P crowdfunding platform of choice in Singapore.
| Summary of Minterest Investment Platform |
|---|
| Over S$162 million raised |
| Competitive Investor Fee: 15% of interest earned |
| Low Default Rates: Typically between 0%-1.62% |
| Short-Term Investments: Up to 12 months |
Table of Contents
- What Makes Minterest Stand Out to Investors
- Investment Opportunities at Minterest
- Minterest Recent Performance
- Investor Eligibility Requirements
What Makes Minterest Stand Out to Investors
Minterest is one of Singapore's best crowdfunding platforms. It charges a lower than average investor fee (15% of interest earned) and offers competitive asset quality with a default rate of 1.62%. The platform also has success in funding deals quickly, with 88% funded in 1 day.
The only downsides to Minterest are that its investment opportunities are somewhat limited. The platform typically offers short-term investing opportunities (12 months max.) and investments in Corporate Financing and Real Estate, whereas other platforms offer a range of investment types and durations. Still, Minterest's low fees, high asset quality and low minimum investment requirements (S$500 initial deposit, S$50 per campaign) make it a great option for investors in Singapore that seek to invest in local SMEs.
Investment Opportunities at Minterest
Minterest offers short-term investment opportunities (up to 12 months) in corporate loans such as Working Capital Loans and Invoice Financing. Approximately 80% of Minterest's loans are less than 6 months in duration. Since 2020, following ARA Asset Management Limited's investment into Minterest, they have also begun offering institutional-grade real estate investments on the platform. Furthermore, the platform makes it easy for investors to find deals that fit their risk preferences using its proprietary credit algorithm "Mint-Grade".
| Investor Service Fees | 15% of interest earned |
| Minimum Investment per Campaign | S$50 |
| Minimum Initial Deposit | S$500 |
| Loan Duration | Up to 12 months |
Minterest Crowdfunding Platform Recent Performance
Minterest's platform has provided solid results for investors in the past three years. For example, its default rate was 1.73% in 2019 and 1.62% in 2020, while its average annualised returns have also been competitive with those of other crowdfunding sites. We strongly caution that past results do not influence future results.
| Year | Weighted Average Annual Return | Adjusted Weighted Average Annual Return | Non-Performing Loans (90+ days) |
|---|---|---|---|
| 2017 | 14.44% | - | 0.00% |
| 2018 | 7.53% | 12.95% | 0.68% |
| 2019 | 6.26% | 8.73% | 1.73% |
| 2020 | 5.25% | 8.73% | 1.62% |
Investor Eligibility Requirements
In order to view investment opportunities on Minterest's digital investments platform, individuals must complete their registration. This includes either a knowledge/experience or suitability questionnaire. Investors must also transfer S$500 to the platform to begin investing.
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Stephen Lee is a Senior Research Analyst at ValueChampion, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between 2018-2020), where he continues to provide business development consulting services to HR companies in Asia Pacific.