Cred Will Offer Credit To Credit Card Users; Enables House Rent Payment Using Credit Card At 1.75% Fees
Cred, a credit card payment app founded by ace entrepreneur Kunal Shah in late 2018, is now all set to foray into digital lending niche.
Two very interesting fintech products have been launched by Cred for their million+ loyal users, which will help them to cope with the financial crisis unleashed by the coronavirus.
Now, Cred users will be offered a credit line, based on their credit card usage, and they will be also provided a lending facility to pay house rent, using another credit line.
How will it work?
Cred Will Offer Credit Line At Less Interest Rate
Cred has launched a unique credit line facility for their million+ users.
Based on the credit card payments history, and credit card usage history, users of Cred will be offered a credit line, or in layman terms, low interest loan.
As per the available information, the interest charged on this loan will be one third of the interest charged by credit card companies, which sometimes hover around upto 42% annualy, or little less than 3% monthy.
Kunal Shah said,” The fact that we are doing it now (amid virus outbreak), means we are confident of our member’s credit worthiness. We just want to enhance their financial confidence and let them continue their credit worthy behaviour. The focus is to ensure their quality of life is not massively disrupted.”
Pay House Rent Via Cred App
Another very interesting fintech product launched by Cred is the facility to pay house rent via their app.
The users who will get this feature enables can link the UPI handle of their home owners, and the rent will be directly credited to their accounts via cred app.
For this service, Cred will charge 1.75% interest on the total house rent.
Hence, if a cred user pays Rs 10,000 as house rent using this credit feature, then he will be charged Rs 175.
Since coronavirus has taken away jobs, and businesses, this can be a valuable feature for cred users to pay their biggest monthly expense: Rent.
Actually, Cred was planning to launch these features by year-end, but since the coronavorus epidemic exploded, they decided to launch the product rihgt away.
Kunal Shah said, “We were planning to launch these products by the end of the year, but we advanced it. We realised paying rent is one of the largest expenses done by most individuals. So, from Cred, you will be able to pay your rent using your credit card and that gives you insane liquidity and flexibility,”
We will keep you updated, as more details come in.