After successfully securing $215 million in a fundraising round held in late April of this year a Bangalore-based fintech startup CRED is all set to expand its services further to assist around 7.5 million customers worldwide. The new feature will allow CRED customers to give money on credit to each other at an interest rate of up to 9% yearly.
The new peer-to-peer lending feature is going to release after being successfully tested for around a month. Kunal Shah, a co-founder of CRED had told to Tech Crunch that “We’re happy to release this feature for our customers as it involves less risk and gives our customers inflation-beating returns”.
If a CRED customer has a credit score of up to 750 he’ll be simply allowed to give money to each other on credit as such a credit score indicates the customer’s financial ability to lend money to one another. To offer this feature the startup have collaborated with LiquiLoans, an RBI-registered P2P NBFC and is planning to expand its collaboration with more such kind of companies in coming years.
Consumers are allowed to deposit around $1,345 to $13,450 in CRED within just a minute and can also withdraw the money without waiting for a long. For a few months, the news is floating around the market that the Bangalore-based startup is being requested by its existing investors to conduct a new financial round comprising of up to $300 million. Although, the rumors have not been officially confirmed by CRED yet.