Cred Mint 9%
Hey guys if you are using Cred Mint for lending, please help. I wanted to know if you guys get the 9% return per annum as promised and what are the downside of this investment, if any.
Also, is there any better alternative to Mint?
Been using it for 2 years now. Had 15L at one point. Got 9% interest as promised and it’s credited every day. But one day this year when RBI revoke license of many fintech players I withdrew all my money in haste. However cred had already applied to license so they were still accepting deposits. Now I have 2.5L there. It’s too big to fail right now but I would be cautious in putting anything more than 5L there
Cred isn’t too big to fail. No one wouldn’t care or make a dent in the economy.
I am talking in terms of the funding rounds right now and it’s market value perceived by the investors. But yes. It’s a risk
People who are doing P2P lending. Be very very careful about putting your money in this. If cred is paying you 9%, think about what it’ll need to do with that to make money? It’ll find people who would be willing to pay more than 9%. And who would be willing to pay more than 9% for a personal loan? People who either can’t get money for lower interest or who desperately need money. This is an adverse selection problem.
Isn’t the general interest rate for a personal loan higher than 9 % ?
Wouldn’t recommend it. There is always a risk involved in P2P lending. I’d recommend investing in FDs with small finance banks. For example, I have some deposits with Equitas which gives me 8.5% interest. Worth the peace of mind. In this scenario, it isn’t really worth the risk just for an extra 0.5%. If your risk appetite is higher, for for MFs/stocks, depending on your risk profile.
Can I open an online account with equitas and it's also covered under rbi rules of recovery unto 5 lakhs?
Yes it is covered till 5 lakhs. Online I’m not too sure, you can check with their helpline. Even their savings account offers 7% interest if you park >5L. Useful if you want to park some funds where high liquidity might be needed. I have mine with Equitas, but most SFBs give good interest rates. Open with any one which is convenient for you
A lot of people are suggesting FDs. The advantage of CRED mint is instant withdrawal without reducing interest rates. The FD interest rate will be reduced if you withdraw prematurely.
CRED mint is savings account with a 9hr delay (of withdrawing)
Using tradecred i.e invoice discounting from past 2 years. Average return around 11%. Feels more secure than p2p lending.