“Cred” a Kunal Shah-led, credit card payment app has launched two new lending products. The products include a flexible credit line and a facility of paying rent. Both the services would be available on a charge of some nominal fee. The rent payment service RentPay would charge a sum worth 1.75% of the amount and the credit line called Stash could be availed at approximately one-third of current interest rates in the market.
These products have been launched amid massive disruptions in the economy, with high demand for liquidity, caused by the ongoing pandemic. The credit card app aims at providing liquidity and ease to carry out transactions to all those customers for whom, paying rent is one of their major expenses.
Although earlier the new lending products were planned to be launched by the end of this year, however, due to an unprecedented high demand for liquidity coming up during COVID 19, the company has planned to launch these products first within 10,000 of its Cred members and then gradually graduate it to other users.
Meanwhile Cred that has partnered with IDBI First Bank as of now plans to be linked with few other banks too in times to come. The portal is easy to use, where the members just need to feed in their bank account details or UPI handle of their landlord to pay rent. Cred, a credit card payment platform that allows its users to pay bills through its app, gives a back bouquet of benefits via Cred coins. These virtual Cred coins can be redeemed across coffee shops, movie theatres, e-commerce platforms, along with other curated experiences and workshops, among others.
While the company had managed to raise a $120 million in Series B round led by Ribbit Capital and Gemini Investments in August this year, it had also managed to secure a $30 million Series A round led by Sequoia Capital previously.