CRED launches P2P loan product “CRED Mint”, its first investment-oriented offering

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Fintech start-up CRED was one of the biggest companies to benefit from the ‘unicorn party’, as it joined India’s unicorn family in April following a fundraiser from $ 215 million as its valuation soared to $ 2.2 billion. Today, the young start-up has produced its first investment-focused product in the form of CRED Mint, a peer-to-peer (P2P) lending product for its members.

CRED Mint allows users to “invest” their savings in a pool of capital, which will be used to lend to users seeking personal loans, at a rate of 12-13%. Users can invest any amount between 1-10 lakhs and will earn around 9% interest.

You can withdraw the amount you need for the loan online, and the money with interest will be returned to the investor within one business day.

CRED Mint will be launched in partnership with the RBI-registered P2P non-bank financial company (NBFC), and this feature is available to select users starting today.

“We are very excited about this because it is the first time that members of our community will be able to directly engage with each other. It’s going to focus on high quality, low risk, but much better, inflation-beating returns that you can get on your money, ”said Kunal Shah, founder and CEO of CRED.

Founded by Kunal Shah and launched in 2018, CRED is a key player in the e-commerce and payment sectors. It has come a long way since the days when it rewarded users with points for paying their bills and aims to become a full-fledged financial service provider with the addition of new segments such as rent payments and personal loans. Currently, it is responsible for hosting around 25-30% of all credit card bill payments in India and has nearly 7.5 million users (which represent 35% of credit card holders premium in India) and over 2,000 brands.

CRED Cash, its short-term lending arm, is also growing, and the company is now the country’s leading fintech lender with a loan portfolio of over 2,000 crore. CRED has loaned approximately $ 269 million to customers to date.

“As we studied user behavior on our platform, we realized that many of our members had hundreds of dollars of unused savings in their bank accounts, racking up interest rates that didn’t even beat. not inflation, ”Shah said. “This is an erosion of wealth and as a community of very trustworthy individuals we have felt that P2P loans provide a low risk investment opportunity for one Cred member investing in another. “

Supported by Tiger Global, Ribbit Capital and Sequoia Capital, CRED has registered its members with an average of 2,000,000 in their savings accounts. If you want to be a member of CRED and be recognized as the most trusted audience for providing financial services, you need a credit score of 750 or higher.


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