Fintech startup CRED on Friday launched its first community-powered product that will allow users to earn interest on idle money by lending it to other CRED members. The firm has launched CRED Mint in partnership with Liquiloans, an RBI registered peer-to-peer (P2P) NBFC.
"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," wrote CRED founder Kunal Shah on Twitter.
In another tweet, Shah stated that CRED team members have been "using the product and enjoying the trust and compounding for months".
Investments made via CRED Mint will be lent out through CRED Cash, a lending product created for "high-trust CRED members", in partnership with banks and NBFCs, according to the firm. Shah has stated that CRED Cash has a loan book of Rs 2,415 crores with NPAs under 1% due to its creditworthy members.
The firm explained that in order to reduce risk even further, the invested money will be routed directly to an escrow account held by CRED's NBFC partner, Liquiloans, and diversified across more than than 200 borrowers on average.
"Members who participate in CRED Mint can earn inflation-beating interest rates of up to 9% per annum, higher than traditional methods," noted the firm.
The Fintech startup stated that CRED Mint has made the process of investing money easy, transparent and fast. Members who wish to invest can put in anywhere between Rs 1 lakh and 10 lakh in under two minutes, commission-free using CRED Mint. Users can request withdrawal in one click, partially or in full, at any time with no penalty. They can also earn interest for the period invested.
CRED added that the withdrawal process is fully online and the amount is returned with interest within one working day.
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