I have increased the amount of money I have in my lending portfolio. I am being a bit cautious when lending, purely in terms of the platform I select to put my money in.
The loans I have given out in January’20 are rated B+, not the best of categories. They carry moderate risk of defaulting. It is within my risk appetite and definitely worth it for the 20% return I get on my loans.
Money I have lent in P2P as of January’20
Why Cautious when lending
P2P lending has become quite famous of late. In 2018-2019 quite a number of platforms opened up that allowed for individuals like you and I to give out loans to those looking for funds and earn an interest from it.
Problem is it is pretty hard to know which is trustworthy. I January’20 a couple of platforms facilitating such loans shut down triggering a lot of chaos. Turns out, the platforms were putting up bogus projects, getting people to invest in money. A typical scam (similar to HYIPs).
That brings me to the P2P loans I have given out. I have stuck with one platform, Mintos. I am not planning to diversify at the moment. Nor am I being rash and putting all my money into Mintos. So far, Mintos has proven trustworthy and reliable. I will keep you updated on what happens.
Breakdown of Investments in P2P platforms
All updates for the month of December’19:
- My Investment Updates for January’20 – Tax Season
- Stock Investment Updates Jan’20 – The Bloodbath continues
- Mutual Fund Investments Update – January’20 – Mutual Funds on FIRE!
- My Alternate Investments Update – January’20
- Earning Reward Points & Cashbacks update – January’20
- P2P lending updates – January’20 Cautious when lending <–You are here