Peer to peer lending review, Twino

Peer to peer lending with Twino.

In 2015 Twino launched a peer to peer lending marketplace based in Latvia which deals in unsecured consumer loans. Investors across Europe can chase very high rates of returns on this platform by buying into these unsecured loans that are taken up by borrowers from Latvia, Poland, Georgia, Russia and also Denmark.

There are 4 ratings of loans and these are as follows, buyback, A, B and band C. The buyback loans come with a variety of different interest rates ranging from around 10% up to 15% and are all covered by the buyback guarantee. This means that in the case of the borrower defaulting on payment Twino will buyback the loan part from you including accrued interest after it has reached 30 days late.

Band A,B,C loans are ranked by how likely the loans are to turn
bad, as such they command much greater interest rates and do not come with the buyback guarantee. The interest rates for these loans are as follows,

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: Band B, interest rate 29.36% expected return after defaults 15%.

: Band C. interest rate 39.58% expected return after defaults 16%.

So far I have not seen a single band A loan to date and I have been using the Twino platform now for over 4 months.

Huge interest rates are available to Twino investors.

My Twino peer to peer lending experiences.

So far after 4 months of investing on Twino I have realised a couple of important things. The first being that you really need to have balls of steel to invest in the band B and C loans! After only 3 months of investing in these loans i have sold off any that I had left on the secondary market. At one point in time I had over 15% of the loans delayed and a further 10% had already gone into default. Fortunately for me i had only dipped a toe in to test the water and the interest received from my successful Band B and C loans plus my buyback loans covered the expected losses. There is obviously a process for defaulted loans and after contacting Twino about the process I was told that It is expected that around 35% of the capital will be retrieved after selling the bad loans to external collectors, although they were keen to point out this figure could be more or even less.
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After this I decided that although the interest rates were amazing, it was not something i could commit to. So I changed strategy and sold all my loans in band B and C and set up the auto investment feature to snap up loans covered by the buyback guarantee at 14%+. So far i have had many that have gone into delayed status but will be payed back to me after 30 days if the borrower defaults.

Is Twino easy to use?

One thing i like about Twino is that it has a pretty good mobile app so that you can check your investments whilst on the go, a nice little feature. 

On your initial investment which can be done with international transfer services you can decide if you would like your investment to be in Euro or GBP which is also great as it means that you do not get stung by any currency fluctuations. 

The website is easy to use and there is a great auto investment feature that I mentioned before. This allows you to set the amount you want to invest, at the rates and timescale that you choose and it will automatically pick up loans that fit the criteria. I found that my full amount was invested with a day or two although sometimes it can be a bit bare of loans to choose from.

In conclusion....

Peer to peer lending with Twino is quite interesting in the fact you can chase some huge interest rates but you need to be aware that it can go wrong and when it does it will be in spectacular fashion if you have put all your eggs into one basket. In my opinion it is defiantly worth trying a small amount of your P2P money on this platform as the up 15% returns on the buyback loans is still an incredible rate but while the platform is still in its infancy I do not personally feel safe to put to many funds into it. As with any peer to peer lending platform it is best to spread your investment across many different loans and to take it steady until you get a feel for the platform.

As it stands at the moment I do not feel like I have been investing there long enough to make any permanent decisions about Twino, as such I will more than likely update this blog post after a bit more time on the site.

Happy investing.

*This blog post contains only the authors personal opinions and should not be taken as financial advice, simply because it isn't