Now lend money and earn 9% back, know how it works
CRED, the Bengaluru-based fintech and unicorn start-up, has made a foray into the peer-to-peer lending market with the launch of its new feature, CRED Mint. This is the company’s very first initiative in this market and also the first community product that allows members to earn interest on unused money. This is done when members lend this money to other members. To launch this product service, the fintech platform has teamed up with Liquiloans, a non-banking P2P financial company (NBFC) registered with the RBI.
Kunal Shah, the founder and CEO of CRED, took to his official Twitter account to talk about the launch. The Tweet read: “Happy to announce CRED Mint. Our first trust-based community product. You can now earn up to 9% interest, while investing in other trusted CRED members.
The company announced that CRED members who participate in the new CRED Mint initiative can benefit from “anti-inflationary interest rates” which amount to around 9% per annum. This is higher than typical methods.
Speaking on the matter, CRED said in a statement: “With up to 9% interest, CRED Mint enables India’s most creditworthy individuals to be rewarded for their responsible financial behavior with a higher means. smart to make the unused money work for them. ” The company also added that users have the option to request early access to CRED Mint.
“The power of CRED lies in our high trust community. With CRED Mint, we enable members to leverage this trusted community to help each other on their journey to financial progress. We believe in allowing those who demonstrate responsible financial behavior to have the privileges they deserve. The product democratizes access to interest rates above inflation and a frictionless, transparent and enjoyable financial experience for highly trusted members of CRED, ”Shah said in the statement.
CRED Mint: how does it work?
To access CRED Mint, whether you are an existing CRED user or new to the fold, you must register for early access to the feature. After registering, you will be able to make your investments in CRED Mint. Investments made in CRED Mint will be loaned through CRED Cash, a loan product created specifically for CRED members. It was created in partnership with licensed banks and NBFCs.
The money invested will then be sent directly to an escrow account held by CRED’s NBFC partner, Liquiloans. The money will then be diversified on more than 200 borrowers on average. CRED Mint members can invest between Rs 100,000 and Rs 1,000,000, with no commission. Those who invest can earn up to 9 percent interest.
What sets CRED Mint apart?
CRED Mint is presented as being completely transparent while allowing the user to follow the evolution of his investments in real time. It also suggests that members can withdraw their money quickly and easily at any time. This can be done in part or in whole without penalty, while retaining the interest that you have accrued during the period it was invested. The entire withdrawal process will be done entirely online and the money will be returned to investors within one business day, according to the company.
Peer-to-peer lending is by no means a new concept, but it would appear that CRED’s approach in this regard is particularly well prepared. One of the problems with this type of category is that of defaulters. CRED might be able to resolve this issue as most CRED members must have a minimum credit score of 750 or higher to join the application. This makes the target audience financially trustworthy, which could lower the default rate in this initiative.
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