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Cred to enter peer-to-peer lending with user funds
August 20, 2021
Fintech start-up Cred will enable peer-to-peer (P2P) lending for its members.
This is the first investment-focused product that the three-year-old start-up has launched, Kunal Shah, the originator, and CEO of Cred told ET over a video call.
Cred Mint, launched in partnership with P2P non-bank LiquiLoans, will allow clients to invest their savings in a capital pool, which will then, at that point be utilized to on-lend to other clients on the platform seeking personal loans.
Those investing in the product will earn interest of around 9%, while loans are disbursed at a rate of 12-13%, Shah said.
Cred will allow clients to put between ₹1 lakh and ₹10 lakh of their capital into the lending pool.
“While we were studying client conduct on our foundation, we realized that large numbers of our individuals have lakhs in savings lying idle in their financial balance, accruing interest rates which don’t beat inflation,” said Shah. “This is an erosion of wealth and as a community of high trust individuals we felt that P2P lending offers a low-risk investment opportunity for a Cred investing into future.”
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