The fintech startup, CRED has come up with a peer-to-peer (P2P) lending platform named Mint. With this the startup aims to monetise its 7.5 million users. Presently, CRED app offers many services like credit card repayment, instant personal loan, rent payments and online shopping deals, etc.
CRED was founded by Kunal Shah and now the startup is rolling out 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.
A peer-to-peer (P2P) lending means a borrower borrows money directly from an individual instead of a financial institution. The lender earns interest on the loan, cutting out financial institutions as middlemen.
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% 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.
As per news source, Mint will be an invite-only product. Shah is hopeful to fuel the P2P lending space in India by allowing individuals with a credit score of over 750 to take loans.
