What is CRED cash?
CRED, a fintech startup has partnered with IDFC bank to provide its users with a credit line similar to a personal loan. This facility provided by CRED is called CRED cash. The minimum credit provided is 80,000 rs. The facility is currently available only to CRED users. The eligible loan amount is decided by CRED and varies based on your credit score, credit utilization and many other factors.
Now that you have an idea about what is CRED cash, let's talk about some of the interesting features of CRED cash.
Features of CRED Cash:
CRED Cash provides users with the flexibility to withdraw the loan amount as per requirement.
Borrowers do not require any documents to avail of the loan amount
The loan amount is disbursed within no time.
Interest is calculated on a daily basis
Further, we will be discussing the process to avail cred cash, interest rates, processing charges, and additional charges.
Table of contents :
How to withdraw money from CRED Cash?
In order to avail of the CRED cash facility you must create an account on CRED and must have the CRED Cash feature available. Another important point is to add your bank account to CRED into which you wish to withdraw the loan amount. With these aspects in place, you can follow the below steps to use CRED cash.
Step 1: Accessing CRED Cash and checking eligibility
1. Open Cred App
2. Click on the CRED cash Button
3. Check the eligible amount available for disbursement
4. Click on the "Take a look" button
Step 2: Selecting the desired amount and EMI
5. Move the circular slicer to select the amount you want to withdraw
6. Click on the "Choose your EMI plan" button
7. Select your desired EMI plan
8. You can check the EMI details by clicking on the "details" option
9. Click on the "Choose your bank account" button
To choose a different repayment timeline from the one provided follow the below steps (Optional)
10. Click on the "Compare plans" button
11. Choose a favorable repayment timeline by moving the horizontal slicer. The corresponding Interest amount and monthly EMI amount will be displayed above
12. Click on the "Proceed" button
Step 3: Setup repayment date
13. Click on the "first EMI date" option in the bottom right of recommended EMI options
14. Move the horizontal slider to select the preferred date.
15. Click on the "Confirm" button
Step 4: Bank account setup
16. Click on the "add bank account" button
17. Select your bank from the list
18. Enter the IFSC Code of your bank and click "Proceed"
19. Now enter your bank account number and click "Proceed"
Step 5: Complete KYC
20. After adding your bank account, Select the desired bank
21. Click on the "Tap instant KYC" button
22. CRED will fetch your KYC details and ask for your PAN details
23. Enter PAN details and Click on "Verify my PAN"
24. After validation, Your KYC details will popup.
25. Check the details and click on "Continue to unlock details"
26. Now, you would be asked to upload a selfie
27. After successfully uploading the selfie click on "Proceed"
28. Verify your details and proceed
Step 6: Setup loan repayment
Next, you would be asked to set Auto loan repayment, you can repay the loan by your debit card or directly from your account. Follow the steps mentioned below to repay by your debit card.
29. Click the "Proceed to setup button"
30. Select "Complete by debit card"
31. The Mandate summary will appear, Check the details and proceed.
32. Next you would be asked to log into the Net banking portal of your bank and complete the process.
33. After executing the above steps the loan amount will be successfully transferred to your account.
What is CRED cash interest rate and how is it calculated?
CRED charges an interest rate of 15-18% per annum on the credit line provided. The interest rate varies from person to person based on their credit score, credit utilization habits, and other factors. However, the interest is calculated using a daily method of interest calculation.
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The daily method of interest calculation ensures that you pay interest only on the exact number of days that you have borrowed the money. Some companies round off the loan period to the closest month and charge interest for the complete month. Cred adjusts the remaining days during the last EMI. Hence, you might observe a slight variation in the last EMI amount.
CRED Cash processing fees and additional charges
Along with the interest charge, borrowers have to pay a processing fee to withdraw CRED Cash. According to the company, these fees are charged to facilitate paperless loan disbursement. Along with the processing fee, an 18% GST fee is charged on the processing fee as per government regulations.
As per our observation, the processing fee accounts for Rs. 250 (including GST) per 10,000 Rs borrowed. This means, in order to borrow 1lakh rupees you would have to pay 2500 Rs as processing fees which will be added to your principal amount.
Conclusion
All in all, CRED cash is a great facility that provides instant money during emergency situations but has a higher interest rate compared to some personal loan-providing companies. However, the instant money disbursement and paperless process make it a much more convenient method to borrow money and is available at your finger tips.
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