Indian lending platform KreditBee issues its first credit card
KreditBee, one of India’s leading digital lending platforms, has entered the card segment today with the launch of ‘KreditBee Card’.
The card provides unserved and underserved banking customers with fast and secure access to short-term cash with multiple repayment options, eliminating the need for a separate loan. KreditBee has partnered with RuPay and RBL Bank for the launch of this product. The KreditBee card is a prepaid card backed by a line of credit for the end consumer, where the amount is loaded into the KreditBee card account once the user submits a purchase or direct debit request.
KreditBee intends to offer 1 million cards by the end of FY22. It offers versatility and flexibility in terms of ticket size and redemption options. Customer can avail a credit limit up to ₹10,000 which can be paid back in a single billing cycle not exceeding 45 days.
The cardholder can make multiple withdrawals or purchases (within the credit limit) while paying lower fees (no hidden fees). The virtual card will also help new customers credit, build their credit score, then qualify for financing in the future, ushering in a healthy credit culture and financial inclusion at the same time.
Speaking on the new product launch, Madhusudan E, Co-Founder and CEO of KreditBee, said, “The credit card is an ambitious financial instrument. Less than 10% of bank customers in India have a credit card. Traditional banks and NBFCs are very strict when it comes to issuing cards. Our goal is to democratize credit in India by issuing the KreditBee card, which functions as a virtual credit card to anyone who is a responsible borrower, regardless of their demographic and income group. This is the best way for a new client to build up a credit history, which will help them qualify for larger loans at a later stage. By the end of fiscal year 2022, we aim to issue 1 million cards to customers. »
Mr. Kunal Kalawatia, Chief Product Officer, NPCI said, “We are pleased to partner with KreditBee and RBL Bank for the launch of the virtual ‘KreditBee Card’ on the RuPay network. We believe that this prepaid card backed by a line of credit dedicated to the underbanked population will serve as a catalyst for financial empowerment by making credit facilities accessible to all and promoting financial inclusion in the country. This virtual prepaid card will provide a secure and contactless credit and shopping experience to all its users. With the launch of this prepaid card, we hope to see an increase in demand for credit cards in remote areas, which in turn may further boost the penetration of RuPay cards in the country.
Eligibility criteria for the offer: A credit-linked card for employees and self-employed across India
KreditBee Card USP:
• 100% virtual – An electronic card will be generated on the application and can be used for transactions instantly
• Quick access – The subscription process is driven by AI and generates a card immediately
• Quick Credit Upgrade: Customers can upgrade their credit limit in a single billing cycle
• Safe and secure – The card is generated on the KreditBee app and is protected by M-PIN
• No hidden fees – A 100% transparent product with no fees or irrational fees
Here are some simple steps to benefit from the “KreditBee card”
• Login to KreditBee App >> Click on ‘KreditBee Card’ section >> Select ‘Check Eligibility’
• To activate the card, click “Activate Card” on the KreditBee app > Provide your bank account details and sign the agreement >> Use the card to withdraw cash or make payments online
KreditBee has raised cumulative funds of over $200 million. This includes the recent Series C funding led by Premji Invest of Azim Premji, NewQuest Capital Partners, Motilal Oswal Private Equity, Mirae Asset and Alpine earlier this year. The company currently has a user base of over 30 million with over 5 million credit customers. It further plans to diversify its product offering by venturing into digital secured loans, home loans and lines of credit. It also involves expanding its loan portfolio by introducing financial services such as BNPL (Buy-Now-Pay-Later) and insurance, among others.