Gain 9% On Cred By Lending Money To Others: How Cred Mint Works? Advantages?

CRED has launched a new feature called CRED Mint.

Members can borrow money from each other and earn interest from it by lending it to other members.

What Is P2P Lending?

Also called peer-to-peer lending, crowdlending, or social lending, one can easily avail quick loans from other individuals without a financial body like a bank.

At present, India’s P2P lending market consists of startups like Lendbox, i2iFunding, Monexo, and RupeeCircle.

About Cred Mint

The fintech unicorn’s community-driven product marks the company’s entry into peer-to-peer lending.

Liquiloans is an RBI-registered P2P non-banking financial company (NBFC).

CRED members can enjoy up to 9% interest rates after investing in other trustworthy members of CRED.

“Inflation-Beating” Interest Rates On Offer

9% interest is considered “inflation-beating” since it is higher than returns on savings accounts and other traditional instruments such as fixed and recurring deposits.

With this initiative, CRED Mint aims to reward responsible financial behavior of creditworthy individuals who can turn idle money into something useful. CRED Mint is currently available for early access.

How It Works

One can either register themselves on the app if they aren’t members already.

After registration, one can make investments in CRED Mint, which they can lend out through CRED Cash.

CRED Cash is a lending product explicitly created for CRED members created in partnership with licensed banks and NBFCs.

Measures Against Risk

The invested CRED Cash will then be routed directly to an escrow account held by Liquiloans.

This is to reduce the default rate and investor risk.

This will then get diversified across 200 plus borrowers on average.

These investors can earn an interest of up to 9%.

Investment Amount

The startup said that its members have around Rs 2 lakh sitting in their savings account.

One can invest between Rs 1-10 lakh, which is commission-free, and be rewarded with higher yields than traditional assets.


One of the standout features of CRED Mint is its transparency.

This means that users can track their investments’ progress in real-time.

Users can also quickly and easily withdraw their cash online either partially or fully, with no penalty at any time.

The money will return to the investors within a working day.

They still retain the interest accumulated for the investment period.

How CRED Verifies Trustworthiness

Defaulters pose a potential challenge.

However, CRED seems positioned to tackle this since it requires its members to have a minimal credit score of 750 or higher.

This ensures the financial trustworthiness of its users, which could serve to reduce the rate of defaulters.