On August 19 (Thursday), the Fintech Company CRED declared that the company is launching a peer-to-peer money lending platform which will be named CRED Mint, as the Fintech startup intends to monetize its 7.5 million consumers. Currently, the CRED app provides many financial services to its users like credit card repayment, quick approval of personal loans, rent payments, and other online shopping deals and offers.
The product, CRED Mint, has been launched in cooperation with Liquilons, which is an RBI-registered peer-to-peer NBFC. CRED, a two-and-a-half-year-old startup company from India, is one of the rapidly growing startups company in India.
Instead of having very low revenue figures, it achieved unicorn status in less than 2 years. CRED also partnered with IDFC First Bank in late last year to provide short-term loans to their users. Now, CRED has become one of the biggest Fintech companies in India with several new features and products.
In today’s post, we will be looking at Cred Mint, its features, and how you can apply for the same. Here’s an overview:
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Major Highlights About Cred Mint:
- CRED has collaborated with LiquiLoans for the launch of their new feature, Cred Mint.
- Members can invest an amount between Rs. 1 lakh to Rs. 10 lakhs with this new feature.
- This is a low-risk investment system with a high rate of returns.
- The user can request the withdrawals of the invested money at any time without any extra charge.
About CRED Mint :
The consumers participating in the CRED Mint can earn very high-interest rates of up to 9% per year, which is comparatively high as compared to the inflation rate. Earlier, CRED was used as a credit-card repayment platform that gives rewards points to its users for paying off their credit card bills. After some time, they also added some other features on the app which comprises rent payments and instant personal loans.
Presently, it is responsible for holding around 25 to 30% of all types of credit cards bill repayments in India and has nearly 7.5 million users (out of which 35% users are the premium credit cardholders in India) on the CRED app. Despite grappling or struggling with the needed paperwork, now the lenders or borrowers with good Credit Scores can turn to CRED Mint to avoid all the issues and difficulties.
In a peer-to-peer lending system, borrowers take money straight from an individual rather than a financial institution. Members can lend or borrow money between the range of Rs. 1 lakh and Rs. 10 lakhs in less than 2 minutes, without any commission charges.
And, you can also request for the withdrawal of the money in just one click, either in installments or in full amount at any time with no extra charge or penalty. Along with this, you can also earn a very good interest rate for the period you’ve invested the money in this system.
To further mitigate or reduce the risk, the invested funds will be directly remitted to a Fiduciary Account or an Escrow Account maintained by CRED’S NBFC partner, Liquiloans, and will be diversified across an average of 200+ borrowers. Kunal Shah, founder of this app said that this will be a risk-free or low-risk investment, as it permits only those selected users who have a good and strong Credit Score on the CRED app.
Conventional peer-to-peer lending platforms have been somewhat successful, but have been scrutinized as they grab attention to those borrowers also who have a poor credit history and low income. Credit, as a market, has experienced strong growth in India during the past few years like Buy Now Pay Later (BNPL) and Peer-to-peer lending makes things easier for people to access instant microloans when they need it the most.
Online application and loan disbursement has also increased as they provide a smoother and paperless experience to all its users. According to CRED, its consumers have Rs. 2 lakhs on average in their savings bank account which is unproductive and also not provides them any major returns on their deposits.
How does CRED MINT will work?
If you’re an existing user of the CRED app or you’re a new one, to avail the benefit of this special feature on the CRED app, you must have to register yourself for early access on the main website of the CRED app. After the registration process, you’ll be capable enough to make your investments in CRED Mint. All the investments through the peer-to-peer system in CRED Mint will be credited through CRED Cash which is actually a lending product created exclusively for the CRED Members on the CRED app so that they can easily withdraw the invested money.
You can think of it as a circle, where some CRED users invest their money and get higher returns, and some CRED users take loans (via CRED Cash), and repay back with the interest. Since the CRED app is only accessible to high-net-worth individuals with good credit scores, the chances of getting defaulters into the system will always be on the lower side. And the money is also distributed in a diversified manner, so the risks remain low.
CRED Mint promotes itself as being fully transparent and permitting the user to track the progress of their investments in real-time. It also states that the members can rapidly easily withdraw the invested money at any time they want. As per the company’s statement, the whole withdrawal procedure will be completely online.
That’s all about Cred Mint. I hope you got the concept of CRED Mint. In case you are interested, you can download the CRED app and apply for the Cred Mint. You can track your investments in real-time and withdraw them right away, which is a good plus.
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