launched a new P2P lending product called CRED Mint to enable its members to earn more interest on idle money they have in their savings account by lending it to other members.
Members who sign up to lend on CRED Mint can earn up to 9 percent interest per annum, higher than returns given by savings accounts and other traditional instruments such as fixed and recurring deposits, the Kunal Shah-led startup said.
CRED Mint will extend the loans via CRED Cash, its lending product, to community members who already use the app and its services. CRED Cash claims to have disbursed over Rs 2,415 crore over the past year, with a default rate of less than 1 percent.
“With CRED Mint, members can confidently invest money knowing that it will only be lent out to others like them: India’s most creditworthy individuals whom CRED knows are good for their word,” the statement read.
CRED said that it has found that its members, on average, have around Rs 2 lakh sitting in their savings account, and its proposition with Mint is that they can lend that cash to other members on the platform, earning higher yields versus traditional assets
Members who wish to invest can apply for early access to Mint, the startup said, and put up anywhere between Rs 1 lakh to Rs 10 lakh for loans, in under two minutes, commission-free.
“We believe in enabling those who demonstrate responsible financial behaviour with the privileges they deserve. The product democratises access to inflation-beating interest rates, and a frictionless, transparent, and delightful financial experience for CRED’s high-trust members,” Kunal said in the press release.
Mint members can also partially or fully withdraw their investments at any time, without any penalty, and earn interest for the period they remained invested, the startup said.
Credit, as a market, has grown substantially in India over the past year with products such as BNPL and P2P lending coming into the fray, making it easier for people to access quick, microloans when they need them. Online application and loan disbursals have also increased as they offer a more frictionless, paperwork-light experience.