Cred launches online loan and bill payment functions
BENGALURU: Credit card loyalty platform Cred launched a new loan product and recurring bill payment feature to pay rent and other household bills on its app.
Cred’s latest loan product, CRED Stash, will offer an instant low-interest line of credit, as part of a pilot project with IDFC First Bank. While its second feature named RentPay allows users to pay household expenses and recurring bills, as well as monthly rent payments using credit cards.
With the ability to pay rent on credit, users can also earn reward points. Upon payment of their credit card bill, members will also receive Cred Coins to spend on Cred Brand Partner products, services and experiences equal to the transaction value of the rent.
On RentPay, users need to add their owner’s bank account or UPI details and instantly transfer their credit card rent, right to the Cred app. Over time, Cred will allow members to set up automatic payment for timely payments.
Other upcoming features include functionality to make other residential payments like maintenance fees and credit card security fees, which can then be funded with affordable EMIs on the Cred app. RentPay can be used for a nominal transaction fee ranging from 1% to 1.5% depending on the member’s credit card network.
The mobile app’s latest loan product, Cred Stash, will offer an instant line of credit of up to ??5 lakhs to users at an interest rate of one-third of the typical interest charge for credit cards. Cred says it is able to offer lower interest since only users with a credit score over 750 are allowed to become members of Cred. Upon completion of the pilot, Cred Stash plans to scale up with multiple banking partners.
Cred members can withdraw any amount from their available limit at any time of the day and instantly receive the selected amount into their bank accounts. They can also select the repayment term of their choice (no minimum term). However, users will need to complete a one-time KYC verification and set up automatic payment for payments from their bank account on a date of their choosing.
“In an effort to enable members to maintain their good credit histories and increase their confidence in a time of economic uncertainty, we have accelerated the launches of two products with the support of banking partners, including IDFC FIRST Bank. . CRED Stash and CRED RentPay are particularly useful for optimizing liquidity and credit, which is essential in today’s environment, ”said Kunal Shal, founder and CEO of CRED in a statement.
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