Historically, two types of loan-based investments have existed on Mintos – claims and Notes.
When you invest in loans by means of assignment agreements (so-called “claims”), you are buying rights to receive loan repayments from the borrower based on an assignment agreement, in which the terms of your investment are described in detail. Your direct claim is against the borrower (or the lending company with a pledge on the loan issued to the borrower in the case of indirect investment structure). This type of investment falls outside regulatory supervision and is currently being phased out on the platform.
When you invest in Notes, you are buying loan-backed securities. As any other asset-backed securities, they are a regulated type of investment, providing investors with an opportunity to invest within the regulated environment of an authorized investment firm while being protected by the investor protection scheme. Purchasing Notes entitles you to receive repayments and interest payments for the Notes whenever borrowers make payments on the underlying loans. The terms of the investment are described in the Mintos Notes base prospectus and in the Final Terms document. This type of investment was introduced in 2022 and will become the only type of loan-based investment available on Mintos.