wordpress blog stats
Connect with us

Hi, what are you looking for?

CRED starts P2P lending with 9 percent returns to investors, here’s how it works

Being the latest entrant in the P2P lending sector, CRED revealed that it looks to mitigate the risk factor by implementing a minimum credit score for users who want to borrow.  CRED, a fintech start-up founded by Kunal Shah, will now be lending credit to its users from a pool of capital made up of their own contributions, according to a TechCrunch report. CRED Mint will offer returns of up to nine percent to CRED’s 7.5 million user base.  The move marks CRED’s entry into the peer-to-peer (P2P) lending space which has been witnessing an influx of fintech players ever since 2017. It is the platform’s first community-driven investment product allowing members to back their peers by giving loans and accrue returns that are more than the rate of inflation.  CRED members have an average of Rs. 2,00,000 in their savings accounts according to data provided by CRED. The start-up claims that the scheme will make better use of its members' idle money and recognise responsible financial behaviour by offering returns with minimal risk.  How will CRED mitigate risk associated with P2P lending?  As per an Indian Express report,  non-repayment of loans is a looming risk in P2P lending. The report said that the risk is the result of it being an unsecured loan that is not backed by any guarantees and that the lender cannot redeem anything in case there is a default.  Traditional P2P lending platforms invite scrutiny because they attract borrowers with poor credit history and low incomes. However,…

Please subscribe/login to read the full story.
Written By

I cover several beats such as Crypto, Telecom, and OTT at MediaNama. I can be found loitering at my local theatre when I am off work consuming movies by the dozen.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...

News

RBI Deputy Governor Rabi Shankar called for self-regulation in the fintech sector, but here's why we disagree with his stance.

News

Both the IT Minister and the IT Minister of State have chosen to avoid the actual concerns raised, and have instead defended against lesser...

News

The Central Board of Film Certification found power outside the Cinematograph Act and came to be known as the Censor Board. Are OTT self-regulating...

News

Jio is engaging in many of the above practices that CCI has forbidden Google from engaging in.

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ