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
- 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)|
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.