KreditBee, a digital lending platform, today launched the ‘KreditBee Card’ and entered into the card segment. The card provides the unserved and underserved banking customers access to short-term liquidity with multiple repayment options, eliminating the need to avail of a separate loan.
The digital lending platform has partnered with RuPay and RBL Bank for the launch of this product. KreditBee Card is a credit-line backed prepaid card for the end consumer, where the amount is loaded into the KreditBee card account once the user sends a purchase or drawdown request.
The digital lending platform intends to offer 1 Million cards by the end of FY22. The company says it offers versatility and flexibility in terms of ticket size and repayment options. A customer can avail credit limit of upto Rs 10,000 that can be repaid within a single billing cycle not going beyond 45 days.
A card-holder can make multiple withdrawals or purchases (within the credit limit) while paying lesser charges. The virtual card will also assist the new to credit customers, to build their credit score, to be able to then avail financing in future, ushering in a healthy credit culture and financial inclusion at the same time.
Madhusudan E, Co-Founder and CEO, KreditBee, says, “Credit card is an aspirational financial instrument. Less than 10 per cent of bank customers in India have a credit card. Traditional banks and NBFCs are very stringent when it comes to issuing cards. We aim to democratize credit in India by issuing a KreditBee Card, which works similar to a virtual credit card to anyone who is a responsible borrower, irrespective of their consumer demographic & income group. This is the best way for a new-to-credit customer to build a credit history, which will, in turn, help them avail of bigger loans at a later stage.”
Features of KreditBee Card:
• It is 100 per cent Virtual- An e-card will be generated on the app and can be used for transactions instantly
• One gets fast access- The underwriting process is AI-driven and generates a card immediately
• Quick Credit Upgrade- Borrowers can upgrade their credit limit within a single billing cycle
• Safe and Secure- The card is generated on the KreditBee app and is M-PIN Protected
• No Hidden Charges- A transparent product with absolutely no hidden charges
• Eligibility criteria for the offering: A credit-linked card for both salaried and self-employed across India
Kunal Kalawatia, Chief of Products, NPCI says, “We believe that this credit-line backed prepaid card dedicated to the underbanked population will serve as a catalyst to financial empowerment by making credit facilities accessible to all and drive financial inclusion in the country. This virtual prepaid card will provide a contactless as well as safe availing of credit and shopping experience for all its users. With the launch of this prepaid card, we are hopeful of witnessing increased demand for credit cards in the remote areas which in turn can further boost the penetration of RuPay cards in the country.”