CRED has introduced two new products aimed at increasing financial confidence for individuals. CRED RentPay allows members to pay their highest recurring household expense, their monthly rent payments, on credit. The second product, CRED Stash, a flexible, low-interest and instant credit line, has been launched as a pilot with IDFC FIRST Bank, and is the only offering of its kind in India.
CRED RentPay allows members to pay monthly rent with their credit cards, directly from the CRED app. With the option of paying rent on credit, members can free up cash, enjoy the interest-free credit period, and earn reward points on credit card spends. Upon paying their credit card bill, members will also receive CRED coins to spend on products, services and experiences from CRED partners equivalent to the transaction value of rent.
Members need to add the landlord’s bank account or UPI details and instantly transfer the rent from their credit card, directly on the CRED app. Over time, CRED will enable members to set up auto-pay for timely payments. Upcoming features include the ability to make other landlord payments such as maintenance charges and security charges through credit card, that can then be financed with affordable EMIs.
CRED Stash is designed to be the fully digital way to get credit in India, without the application and verification processes typically associated with loans and at an interest rate at one-third of typical credit card interest charges as CRED’s member base have credit scores over 750. On completion of the pilot, CRED Stash will scale up with multiple bank partners.
With CRED Stash, members will be progressively pre-approved for an active credit line of up to Rs 5,00,000 with no forms, documents, phone calls or physical visits. Members can draw down any amount from their available limit at any hour of the day, and receive the selected amount in their bank accounts. They can select their preferred duration to pay back . The bank will charge interest only on the amount withdrawn, at a third of the interest rates charged on credit card usage. The CRED Stash depends on members’ credit scores, credit card limits and previous card repayment, with the pilot rolled out to a limited group first.
Kunal Shah, Founder and CEO, CRED, said in a statement, “With the intent of enabling members to maintain their good credit track record and increase confidence at a time of economic uncertainty, we have fast-tracked the launch of two products with the support of banking partners, including IDFC FIRST Bank. CRED Stash and CRED RentPay are particularly useful in optimizing cash and credit, which is critical in the current environment.”