CRED launches its new peer-to-peer lending feature CRED Mint

CRED, a fintech platform, announced the launch of CRED Mint, a new peer-to-peer lending feature, on Friday. CRED Mint is the platform’s first community-driven product, allowing members to earn interest on their spare cash by lending it to other members with high trust. The product is being launched in collaboration with Liquiloans, a P2P NBFC that is registered with the RBI.

The platform began as a credit-card repayment platform, rewarding users with points when they paid their credit card bills on time. Its services were then expanded to include rent payments and personal loans.

CRED Mint members can earn interest rates that are higher than inflation, up to 9% per year.

CRED’s founder and CEO, Kunal Shah, said the company is releasing this feature, dubbed CRED Mint, that a selected group of users have been enjoying the feature for months. And now it is open to all.

Members of CRED have an average of 2 lakh in their savings accounts. CRED Mint, which offers up to 9% interest, is designed to help India’s most creditworthy individuals be rewarded for responsible financial behavior, according to the company.

Members of the CRED program can apply for early access to Mint.

Peer-to-peer lending is not a strange idea. In this space, a number of large and small companies operate, but CRED appears to be uniquely positioned to address one of the most pressing issues: defaulters.

Members of CRED have a credit score of 750 or higher, making them the most reliable audience for financial services. In order to join CRED, a user must have a credit score of 750 or higher.

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 democratizes access to inflation-beating interest rates, and a frictionless, transparent, and delightful financial experience for CRED’s high-trust members,” Shah added.

The startup has partnered with LiquiLoans, an RBI-registered P2P NBFC, for CRED Mint. CRED, according to Shah, will eventually partner with more players. Users can invest anywhere from 100,000 Indian rupees ($1,345) to 1 million rupees ($13,450) in under two minutes, and they can withdraw their funds at any time without penalty.

CRED, which is backed by Tiger Global, Ribbit Capital, and Sequoia Capital India and was valued at $2.2 billion in an April round, has received inbound requests from internal investors to raise a new round of over $300 million. CRED is valued at around $4 billion post-money under the proposed terms.

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