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Fintech platform CRED, on Friday, announced the launch of a new peer-to-peer lending feature called CRED Mint.
CRED Mint is the platform’s first community-driven product that enables members to earn interest on idle money by lending to other high-trust members. The product is being launched in partnership with Liquiloans, an RBI-registered P2P NBFC.
Members who participate in CRED Mint can earn inflation-beating interest rates of up to 9 per cent per annum, CRED said in an official release.
The platform started out as a credit-card repayment platform, rewarding users with points for paying their credit card bills. It then expanded its offerings, including rent payments and personal loans.
CRED members have, on average, ₹2 lakh sitting in their savings accounts. At up to 9 per cent interest, CRED Mint is meant to help enable India’s most creditworthy individuals to be rewarded for responsible financial behaviour, the company said.
CRED members can apply for early access to Mint.
How it works
Investments made in CRED Mint will be lent out through CRED Cash, a lending product created for high-trust CRED members, in partnership with licensed banks and NBFCs.
Members have leveraged CRED Cash for emergency spends over the past year; with over ₹2,415 crore disbursed.
The invested money will be routed directly to an escrow account held by CRED’s NBFC partner, Liquiloans, and diversified across 200+ borrowers on average, it further explained.
Members can invest between ₹1,00,000 – ₹10,00,000, commission-free.
They can request withdrawal in one click, partially or in full at any time with no penalty, and earn interest for the period invested. The withdrawal process will completely be online, and the money with interest will be returned to the investor within a working day, it further added.
Kunal Shah, Founder, CRED, said, “The power of CRED is our high-trust community. With CRED Mint, we are enabling members to leverage this trusted community to help one another in their journey of financial progress.”
“The product democratises access to inflation-beating interest rates, and a frictionless, transparent, and delightful financial experience for CRED’s high-trust members,” Shah added.
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