Earn 9% On Cred By Lending Money To Others: How Cred Mint Works? Advantages?

The feature allows members to earn interest on idle money by lending it to other members/peers.

CRED has introduced a new feature called CRED Mint. 

The feature allows members to earn interest on idle money by lending it to other members/peers.


What Is P2P Lending?

Also called peer to peer lending, crowdlending or social lending, one can easily avail quick loans from other individuals without the involvement of a financial body like a bank.

Presently, India’s P2P lending market comprises startups like Lendbox, i2iFunding, Monexo and RupeeCircle.

About Cred Mint

The community-driven product marks the fintech unicorn’s entry into the peer-to-peer lending market.

It is partnering with Liquiloans which is an RBI-registered P2P non-banking financial company (NBFC).

The feature promises members up to 9% interest rates which one can enjoy after investing in other trustworthy CRED members.

“Inflation-Beating” Interest Rates On Offer

The 9% interest rate reward is dubbed “inflation-beating” since it exceeds returns from savings accounts and other traditional instruments such as fixed and recurring deposits.

Through this initiative, CRED Mint seeks to reward responsible financial behaviour of creditworthy individuals who can make their idle money work for them.

Presently, CRED Mint is open for early access.

How It Works

One can either register themselves on the app if they aren’t members already.

After registration, one can make investments in CRED Mint which they can lend out through CRED Cash.

CRED Cash is a lending product created specifically for CRED members created in partnership with licensed banks and NBFCs.

Measures Against Risk

The invested CRED Cash will then be routed directly to an escrow account held by Liquiloans.

This is so as to reduce the default rate and investor’s risk.

This will then get diversified across 200 plus borrowers on average.

These investors can earn an interest of up to 9%.

Investment Amount

The startup said that its members on average have around Rs 2 lakh sitting in their savings account.

One can invest any amount between Rs 1-10 lakh which is commission-free and be rewarded with higher yields compared to traditional assets.


One of the standout features of CRED Mint is its transparency.

This means that users can track their investments’ progress in real-time.

Users can also quickly and easily withdraw their cash online either partially or fully with no penalty at any time.

The money will return to the investors within a working day.

They still retain the interest accumulated for the investment period.

How CRED Verifies Trustworthiness

A potential challenge is posed by defaulters.

However, CRED seems positioned to tackle this since it requires its members to have a minimal credit score of 750 or higher.

This ensures the financial trustworthiness of its users which could serve to reduce the rate of defaulters.

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