- CRED introduces two new schemes- CRED Stash, An Instant Credit Line, and CRED RentPay for Rent Payments on Credit Card.
CRED RentPay allows members to pay monthly rent directly from the CRED app, using their credit cards. Members can free up cash, enjoy the interest-free loan period and gain reward points on credit card purchases with the option of paying rent on credit. Members will also earn CRED coins when they pay their credit card bill to spend on CRED partners’ goods, services, and experiences equal to the transaction value of the deposit.
CRED RentPay is intuitive, easy to use and straightforward, allowing members to make more decisions about paying rent. Members simply add the bank account or UPI information of the landlord and immediately pass the rent directly to the CRED app from their credit card. Over time, CRED allows participants to set up auto-payments for overdue payments. Upcoming apps include the ability to make other landlord payments such as maintenance fees and protection fees by credit card, which can then be funded using inexpensive EMIs. CRED RentPay may be used for a small transaction fee ranging from 1% to 1.5% depending on the credit card network of the user.
Kunal Shah, Founder & CEO, CRED, said, “High-trust communities result in high-performance societies because the reduced risk enables organizations to deliver a wide variety of less friction and convenience goods and services. Which is why CRED is able to give our creditworthy members strong and personalized products in collaboration with multiple organizations.
CRED RentPay supports the wider financial services ecosystem by transferring to the credit card the single largest monthly expense element in a household, increasing use within a highly trusted, affluent population. With their small ticket size, recurring existence and predictability, rent payments are an ideal line item for low-risk movements to credit.
CRED Stash, which is being piloted by IDFC FIRST Bank, is designed to be the cheapest, most convenient and entirely digital way of accessing credit in India, without the cumbersome application and verification procedures usually associated with loans and at an interest rate of one-third of average credit card interest rates.
This is possible only on CRED because of its trustworthy member base, all of whom have credit scores over 750. On completion of the pilot, CRED Stash will scale up with multiple bank partners.
With CRED Stash, members will be slowly pre-approved for an active Rs 5,00,000 credit line with no forms, records, phone calls or physical visits. CRED members can draw any amount from their available limit at any hour of the day in three stages, and obtain the selected amount instantly in their bank accounts. They may pick their desired period (no minimum tenure) to be paid back. The bank will charge interest only on the withdrawn sum, at a third of the interest rates paid on credit card use, helping members spread out their stockpile. The CRED Stash relies on credit ratings of holders, credit card limits and previous card refunds,=.
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