Minterest Crowdfunding Platform - Review for Investors

Great platform for short-term crowdfunding investment opportunities.

Minterest Crowdfunding Platform - Review for Investors

Great platform for short-term crowdfunding investment opportunities.

4.3/5.0

ValueChampion Rating ValueChampion Icon

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.

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

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 Fees15% of interest earned
Minimum Investment per CampaignS$50
Minimum Initial DepositS$500
Loan DurationUp 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.

YearWeighted Average Annual ReturnAdjusted Weighted Average Annual ReturnNon-Performing Loans (90+ days)
201714.44%-0.00%
20187.53%12.95%0.68%
20196.26%8.73%1.73%
20205.25%8.73%1.62%
* Assuming an investor made an investment of S$1,000 in each Funding Request for that year, this is the net return (after fees) on capital deployed.

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.

Stephen Lee

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.

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