Twino – How I’ve found it so far

I thought I do another post about Twino outlining my experience so far. I only initially deposited a small amount and am still on the fence as to whether I will deposit more or not. While I do like the interface the volume of loans appears to be a lot smaller than Mintos. I only invest manually with Linked Finance but for Mintos and Twino I let Auto-Invest take care of everything.

 

This is my auto-invest  scheme. I noticed for the first few days there were no investments made. I emailed Twino asking them if everything was set up correctly. They responded the next morning:

Your Auto-Invest is set up correctly. However, currently the demand for investment loans is higher than the supply we are able to offer and the loans are sold out soon after they have been added to the platform, both manually and by Auto-Invest portfolios. Since all Auto-Invest portfolios form a queue and invest accordingly, it takes a long time for it to move forward and your Auto-Invest had not reached its turn yet. However, if you see loans you are interested in, it will be faster to buy them manually.

Furthermore we suggest to create another portfolio to include loans with the new Payment Guarantee (PG), as new long term loans now come with the rating Payment Guarantee.

We are working to increase the loan volumes and believe that the availability of loans will increase in a couple of weeks.

It seems there customer care is quick at responding. It’s also worth noting that Twino offer two different investor protection schemes – BuyBack Guarantee and Payment Guarantee.

BuyBack Guarantee

Twino will compensate both the invested principal amount and interest, as well as pay the accrued interest in case a borrower is late with the repayment for over 30 days.

Payment Guarantee

TWINO will compensate both the invested principal amount and earned interest as per original loan repayment schedule, even if the borrower is late with the repayment. The Payment Guarantee applies to the whole duration of the loan.

I’m still a bit unclear as to the difference between the two and have asked for clarification.

I received a response 9 minutes after emailing Twino:

When a loan with the BuyBack guarantee defaults (has a delay of 30 days), it is bought back by TWINO, returning all funds invested in the loan plus interest for the 30 days of delay. Thus, you have to look for new investments in order to make your money work.

The difference with the Payment Guarantee is that the loan is not bought back after the 30th day of delay. The loan status changes to “Defaulted”, and you are no longer able to resell the shares, however you keep receiving monthly repayments of principal and interest in accordance with the original loan schedule until the loan is fully repaid.

Right now, if I log onto Twino there are no loans available with either Guarantee. Out of the 62 loans available to invest in all but one is delayed. I’m going to hold off another few weeks to see if the quantity of loans increases or not before I make another deposit to Twino. I’m hoping to have a look at Viainvest in the next few days as well to see if it’s worth putting some money into. I would have concerns as to how many of these marketplaces are popping up and whether it is sustainable.

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