Cred, a credit card payment service platform, has introduced a new feature called Cred Mint to provide peer to peer lending among CRED customers.
What is CRED Mint?
Cred has partnered with Liquiloans, RBI approved P2P NBFC, to launch CRED Mint for its users. It is a community-based product where Cred members can lend money to other trustworthy members based on predefined interest rates.
Fintech platform launched Mint service on Friday. As per the Cred statement, a Cred user who is giving money to another creditworthy member can earn an interest rate of around 9 per cent.
Cred was launched as a credit card bill payment system. Later, it introduced other features including rent payments and personal loans.
A user requires a certain level of Credit score to join the platform. It does not allow all credit cardholders to join its platform by default. If a Cred user is paying a credit card bill via the Cred app, it provides cashback, offers, and Cred points that can be used for different purposes.
About Cred and CRED Mint Details
CRED Mint is a win-win product for money lenders and borrowers. A user can invest Rs 1 lakh to Rs 10 lakhs without paying any commission to third parties.
If a user is interested to take their money back, it is possible to withdraw that partial or full money without any extra penalty. The lender will also get interesting in the time he/she invested the money.
Under the CRED Mint scheme, the money will be directly credited or debited from the users’ accounts connected with Cred. The fintech firm has also collaborated with banks to process such activities.
Currently, Cred has over 7.5 million users on its platform. The platform also claims that it processes 25 per cent of the total credit card payment bills in India.
It has also built a loan book of over Rs 2415 crore with NPAs. Kunal Shah led Cred’ popularity is skyrocketing day by day due to its user-friendly products and services.
Talking about the CRED Mint feature, Kunal Shah said that it provided inflation-beating interest rates to its users. Transparency, frictionless, delightful financial experience will make this product popular among the trustworthy Cred members.