Kunal Shah's fintech start-up CRED launches P2P lending platform 'Mint'
Bengaluru-based fintech platform CRED Friday announced the launch of a peer-to-peer (P2P) lending product called Mint on its platform that will help its 7.5 million users benefit more from the service. Its users can lend/borrow through Mint at an annual interest rate of up to 9%. According to the company's founder, Kunal Shah, Mint is the first investment-focused feature launched by CRED. Here's more.
CRED has partnered with LiquiLoans for launching Mint
CRED is launching Mint in partnership with LiquiLoans, which is a Reserve Bank of India (RBI) registered peer-to-peer lending non-banking financial company (NBFC). With the start-up's P2P lending platform, CRED users will be able to invest their savings in a capital pool that will be used for lending funds to other members who seek personal loans on the platform.
CRED members can lend/borrow amounts between Rs. 1 lakh-10 lakh
Users will be able to lend or borrow an amount between Rs. 1 lakh and Rs. 10 lakh through CRED Mint. While the members investing their savings in the capital pool will be able to earn an interest rate of up to 9% per annum, funds will be reportedly disbursed to those taking loans at an interest rate of 12% to 13% annually.
Take a look at what Shah posted on Twitter
Excited to announce CRED mint. Our first community product built on trust. You can now earn up-to 9% interest, while investing in other trustworthy CRED members. pic.twitter.com/uCbKUBvWdZ— Kunal Shah (@kunalb11) August 20, 2021
High-quality, low-risk, inflation-beating returns!
"We're super excited about this because it's the first time our community members will be able to invest in one another directly. It's going to focus on high-quality, low-risk, but much better, inflation-beating returns you can get on your money," Shah told TechCrunch.
Smarter way to make idle money work for CRED users
According to CRED, its users have Rs. 2 lakh on average in savings lying idle in their bank accounts that is not giving them any major returns. "At up to 9% interest, CRED Mint will help these users, India's most creditworthy individuals, to be rewarded for responsible financial behavior with a smarter way to make idle money work for them," the start-up said.
Investors can request withdrawals at any time online
According to CRED, users investing through Mint will be able to request withdrawals at any time and without any penalty. "The withdrawal process is fully online, and the money with interest will be returned to the investor within a working day. As a digital platform, CRED reduces friction, inefficiency, commissions, and overheads to pass on higher earnings for members," CRED said.
Mint will be an invite-only product, says Shah
Shah said Mint is an invite-only product, however, CRED users can now apply for early access. "We anticipate a lot more demand than the capacity to absorb. We will not compromise on the quality of our lending book. Because most platforms offer to low-income group segments, the NPAs have been high and the risk mismatch meant these platforms couldn't become big," he said.
Bengaluru-headquartered CRED founded by Shah in 2018
CRED—founded by Shah in 2018—started as a platform for rewarding users for making credit-card repayments. Apart from newly-launched Mint, the company offers products like CRED RentPay, CRED Cash, CRED Pay, CRED Store, and CRED Travel Store. It is backed by Tiger Global, Sequoia Capital (India), DST Global, and Ribbit Global, among other investors. As of April 2021, CRED has a valuation of $2.2 billion.