Stash is being piloted with IDFC First Bank and is designed to be a completely digital way to get credit in India.
According to a press note, Cred aims to provide a seamless way of credit to the consumer without the tedious application and verification processes typically associated with loans and at an interest rate at one-third of typical credit card interest charges.
The team adds that CRED’s member base have credit scores over 750. On completion of the pilot, CRED Stash will scale up with multiple bank partners.
Kunal Shah, Founder and CEO, CRED, said:
“High-trust communities result in high-performance societies because the reduced risk allows institutions to offer a wide range of products and services with less friction and greater convenience. 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 optimising cash and credit, which is critical in the current environment.”
With Stash, members will be progressively pre-approved for an active credit line of up to Rs 5 lakh with no forms, documents, phone calls, or physical visits. In three steps, CRED members can draw down any amount from their available limit at any hour of the day, and instantly receive the selected amount in their bank accounts.
They can select their preferred duration to pay back (no minimum tenure). The bank will charge interest only on the amount withdrawn, at a third of the interest rates charged on credit card usage, helping members stretch their stash. 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.
The first time a CRED member dips into their Stash, they will need to do a one-time KYC verification (one-click using CKYC) and set up auto pay to automate payments from their bank account on a date of their choice. The lending partner, such as IDFC FIRST Bank, will verify and transfer the requested funds to their account immediately.
Members can monitor their CRED Stash at any time, track repayments, pay upcoming EMIs, lump-sum or even foreclose instantly at no extra charges. The available limit will be visible to members at all times, similar to how they track their credit cards, CRED coins, and gems.
RentPay, on the other hand, 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.