CRED launched new peer-to-peer lending feature

Fintech platform CRED recently announced the launch of a new peer-to-peer lending feature called CRED Mint.

Daily Current Affairs Quiz 2021

In P2P lending, users sitting on idle money provide loans to potential borrowers identified by the service provider. These lenders then receive payments from the borrowers on a set basis — either one time, or in equated monthly instalments.

P2P lending is not a new feature. Some of the major companies operating in this space include RupeeCircle, Finzy, IndiaMoneyMart, etc. For its P2P lending feature, CRED has tied up with RBI-approved non-banking financial company Liquiloans.

In 2017, the Reserve Bank of India had brought this service under its regulatory purview.

Even at the time, there were more than 20 P2P lending players in the market but RBI’s regulations ensured only the serious ones with watertight business models remained in the sector.