New Delhi: CRED on Thursday (August 19) announced that the firm is launching a peer-to-peer (P2P) lending platform named Mint, as the fintech startup aims to monetise its 7.5 million users. At present, the CRED app offers several services such as credit card repayment, instant personal loan, rent payments and online shopping deals, among others.
Founded by second-time founder Kunal Shah, CRED is launching the Mint platform in partnership with RBI registered P2P non-banking financial company (NBFC), Liquiloans. Notably, Liquiloans count Shah as one of the early investors in the startup.
What is peer-to-peer lending?
In peer-to-peer (P2P) lending, borrowers borrow money directly from an individual, instead of a financial institution. The lender earns interest on the loan, cutting out financial institutions as middlemen.
How CRED’s Mint platfrom will work?
Similarly, in CRED’s Mint platfrom, the users of the fintech app will act as both borrowers and lenders. Shah has reportedly said that CRED Mint will offer an interest rate of up to 9 per cent to its users who will be investing their money in the peer-to-peer (P2P) lending platform. The members will allow to invest or lend in between Rs 1 lakh to Rs 10 lakh.
CRED is offering commission-free loans and investment options under the Mint platform. Members of the app will be able to invest or lend their money in just a click. Borrowers can withdraw the money in full or part of their allowed limits, depending on their requirements. Also Read: Sensex slumps over 400 points in early trade; Nifty slips below 16,500
Who can use CRED’s Mint platform?
Shah told MoneyControl that the P2P lending platform, Mint, will be an invite-only product. The founder is hoping to fuel the P2P lending space in India by allowing individuals with a credit score of over 750 to take loans. Also Read: Flipkart Mobiles Bonanza sale: Grab up to Rs 10,000 discount on iPhone 12 series, Poco M3, Asus ROG and more