India-based members-only credit card payment start-up Cred has entered the lending space by enabling rent payments via credit cards and offering a flexible credit line.
The move is in line with the high demand for liquidity in the economy amid the on-going coronavirus (Covid-19) crisis.
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One of the major expenses incurred by any individual during these unprecedented times is paying rent.
Therefore, Cred has decided to facilitate rent payments on credit cards and offer a flexible credit line within minutes.
Cred users have to add their bank account details or the unified payments interface (UPI) handle of the landlord to pay the rent from a credit card.
The company will charge a fee of 1.75% of the rent amount paid via credit cards.
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By GlobalDataThe credit line product will charge nearly one-third of existing interest rates on a credit card in the market.
Cred founder Kunal Shah said: “We are looking to offer some bit of financial confidence to our customers by offering a flexible credit line at interest rates which are less than one-third of a credit card mainly to offer some cash in their hands to help them manage in these tough times.”
The company plans to offer its products to the first tens of thousands of its members in the coming weeks as part of a pilot.
It will gradually launch the products for the rest of its users.
Currently, the company is working with one bank for the initiative and is also in talks with other banks.
However, the names of the banking partners have not been disclosed.
