Kunal Shah-led credit card payments app CRED has rolled out its new lending products — CRED RentPay and CRED Stash.
Both products will help its members maintain their good track record and optimize cash and credit, which is critical in the current situation, said the company via a press statement.
The first product, CRED RentPay allows its users to pay recurring household expenses and bills, and monthly rent payments using credit cards. The users need to add the landlord’s bank account or UPI details and instantly transfer the rent from their credit card, directly on the app.
Some other benefits of paying rent through credit cards also include members receiving CRED coins to spend on products, services, and experiences from CRED partners equivalent to the transaction value of rent. The company is also planning to enable auto payments for timely rent payments in the near future.
The second product named CRED Stash, will offer a low-interest instant credit line, through a pilot with IDFC First Bank. This allows members for a pre-approved with an active credit line of up to Rs 5,00,000.
While they can draw down from their available limit and can select the preferred duration to pay back the amount, the bank will charge interest only on the amount withdrawn, at a third of the interest rates charged on credit card usage. This feature, however, depends on the members’ credit scores, credit card limits and previous card repayment, with the pilot rolled out to a limited group first, added the statement.
This launch has come within five days after the company had announced its plans to roll out its new lending products. At a time when the whole economy is badly hit given the massive disruption caused by the Covid-19 pandemic and demand for liquidity is high, the development may prove beneficial for the members associated with CRED.
CRED is a credit card payment platform that lets cardholders pay bills through the app, and get a bouquet of benefits via CRED coins. It had raised a $120 million worth Series B round led by Ribbit Capital and Gemini Investments in August last year.