CRED Stash Review: 1-click KYC to access credit in 90 seconds

By | April 29, 2020

At this time when coronavirus has severe impact across all industries, the need for liquidity is at an all time high. CRED, the credit card bill payments platform has rolled out access to a credit-line exclusively for its members named CRED Stash. It maybe categorised as a personal loan product, but there is more to it. Here is everything you need to know,

CRED Stash Review
Instant personal credit line from CRED Stash – Review

What is CRED?

CRED is a member only app reserved for the few having very good credit score (750 and above). The app allows you to pay all your credit card bills from a single place and you get rewarded for it as well.

I’ve personally got well over Rs.30,000 worth of benefits since its launch in late 2018. The detailed review of the app is here: CRED Review just incase if you’re new to it.

What is CRED Stash?

CRED Stash is the personal creditline given for CRED members, available at attractive interest rates compared to a typical personal loan and is completely a digital lending service that utilizes CKYC service setup by government for easier KYC process across financial institutions. Hence no more verification calls, no site visits, delays, etc – Its instantly available.

Its as simple as few taps and your money is in your a/c in a matter of minute or two. Makes sense isn’t it? I mean we have proved our credit worthiness over years by keeping the credit score good and why should we need to wait for a week or so for approval and disbursal?!

I wish this instant eligibility/approval system becomes a standard for all Credit Card applications too in near future.

These perks seems to be possible on CRED because all of its members have a better credit score, thus making the entire community creditworthy and trustworthy.

Charges

  • Processing Fee: 1% to 2% (dynamic)
  • Interest Rates: 11% to 16% (dynamic)
  • Foreclosure Charges: Nil
  • Part Payment Charges: Nil

Processing fee appears to be dynamic and is upto 2% depending on various factors like loan amount, credit score etc.

Interest rates appears to be in the range of ~13% for most test amounts I did but it could vary anytime as there maybe different lending partners providing different rates based on various parameters. For now, they have partnered with IDFC First bank and plans to add more in coming months.

That aside, there are no other charges for foreclosure & part payments, which is usually in the range of 3% with existing personal loan products.

CRED Stash Vs Personal Loans

  • Its INSTANT: CRED Stash is an INSTANT credit line in both senses: Approval and Disbursal. A typical personal loan is not instant unless you’re pre-approved based on your relationship with the bank, in which case the loan amount usually depends on your NRV with bank.
  • Its FLEXIBLE: CRED Stash by industry standards is an extremely flexible creditline. For ex, if you’re approved for 5L credit line, You may withdraw 2L today, 1L next month & 1L more after a month etc and once you’ve funds, clear all loans at once, without any fees. Flexibility like this is hard to find when it comes to anything related to direct handling of money.
  • Attractive Interest Rates: Personal loans generally comes with 16% or above interest rates unless you’ve a premium banking relationship with a bank. With CRED Stash though, getting 13% or even lower rate is possible just with your credit history.
  • User Experience: An user friendly interface & a frictionless process is what we get with CRED compared to a typical personal loan product. Then there are some good animations throughout the process for some fun, before you have the real fun with the money.

How much can I save?

To figure out how much one could save via CRED stash over conventional personal loans, let’s assume you take 2L loan at 13% with CRED, compared to 2L loan at 16% elsewhere. Let’s assume 0.75% difference in processing fee as I see in most cases. And also, lets assume you close the loan in half way (at 1L). With above assumption here are the savings:

  • Savings via interest: Rs.3000
  • Savings via Processing Fee: Rs.1500
  • Savings via Pre-closure: Rs.3000
  • Total Savings: ~Rs.7500

I personally see a great value with nil foreclosure fee & pre-closure charges as it not only helps us save but also gives the flexibility with which comes peace of mind.

Application Process

It has a super user-friendly application flow, so easy that you don’t even need to know what to do prior, as the app guides you well on each page. You get to see everything (loan summary with all details) on the final page before you tap the last button to withdraw.

The money is then instantly transferred to your chosen bank account. The entire process is done digitally, including the auto-debit setup for EMI. Here’s a visual treat for your eyes about the entire flow:

Choose your loan amount
Choose from available EMI Options
Choose A/c to Withdraw & proceed to KYC
Verify KYC details retrieved from CKYC registry
Authenticate AutoPay via Net banking
Final summary of the Loan
Loan Amount successfully credited into your A/c

Credit Line & Eligibility

  • To be eligible for CRED Stash, you just need to be a CRED member
  • Credit Line: Depends on your credit report, score & many other factors as usual.

Even-though CRED Stash is eligible for all CRED members, its currently in beta and went live only for select members, for now. Its expected to be rolled out for “all” in a phased manner, in coming “weeks”.

However, do note that you need their latest app (with a redesigned UI) for you to avail the service. If eligible, you should be able to see the same on your CRED app’s home screen.

So if you’re using the old version, go ahead and update it. Or, if you do not have the CRED app yet, here’s the download link.

Bottomline

  • Cardexpert Rating: 4.9/5

CRED Stash is undoubtedly an amazing product for Indians looking for quick cash either for an emergency or other personal needs without hidden fees & complications. Its instant, flexible, fully digital, user-friendly, all that comes with an attractive interest rate. What else could we dream of?!

Hence, if you’re in cash crunch, its better to go with CRED Stash over Personal Loans, Loan on Credit Card, Credit Card EMI, Balance transfer, etc as all these usually come with higher interest rates without flexibility.

Its indeed a great product by CRED that fixes all the pain points of existing personal loan concept. It is likely to be a game changer in personal finance in 2020 and beyond.

What’s your take on CRED Stash? Feel free to share your thoughts in the comments below.

25 thoughts on “CRED Stash Review: 1-click KYC to access credit in 90 seconds

  1. Omkar Sunil Sathe

    I didn’t understand this statement. “I personally see a great value with nil processing fee & pre-closure charges as it not only helps us save but also gives the flexibility with which comes peace of mind.” Is the processing fee NIL or dynamic 1-2%?

    Reply
    1. Siddharth Post author

      Ah, that’s supposed to be “foreclosure”. Updated it, thanks.

      Reply
  2. Ankur

    I guess this Personal Credit Line amount enquiry will be reflected in CIBIL. Not sure though, need clarification. As funds will be sponsored by IDFC First Bank only.

    Reply
    1. Siddharth Post author

      Likely, as IDFC First or others will fetch credit report and the loan will be reported to CIBIL as well. I think it should work similar to Amazon Pay EMI via Capfloat

      Reply
  3. Captain Bishuddha Bharatiya

    Wow amazing. Since HDFC has stopped Jumbo Loan for majority of us CRED appears to be the best place for loan. If someone invests in stock market today than he can expect more than 13% annual return in the long run.

    Reply
    1. Siddharth Post author

      For those new to stocks,
      Investing Basics: Never invest using a borrowed money.

      For others,
      Its not legally allowed either (I heard so)

      But yes, even 50% gain is doable in current situation, if all goes well.

      Reply
      1. Captain Bishuddha Bharatiya

        Siddharth I don’t see any option to check for loan in my and my 2 family members CRED ac. Where exactly is it located ?

        Reply
        1. Siddharth Post author

          Its being rolled out in a phased manner, might take few weeks.

          Reply
      2. surya

        I second the never invest on borrowed money mantra.. unless you’re as successful as warren buffet was 😀

        Reply
    2. Shivi

      Ah so HDFC stopped Jumbo Loan for All! I thought it was only for me; still getting Insta loan option there so far.

      Reply
      1. abhishek Indore

        Its not like that @Shivi. I still have JUMBO loan offer of Rs.600000 as on today.

        Reply
  4. Harsh

    So CRED STASH is more like a no visit personal loan and not like the apple credit card right? Does it mean that lets say i get a credit line of 250000- then in that case i can borrow upto 250000 and chose the emi options??

    Reply
  5. HG

    and here it comes! the most awaited revenue model, the timing is perfect of course given there’s a liquidity crunch out there. I have always been wondering for the past year how will CRED make their money, and it was sort of obvious, all the data that’s being collected on everyone’s spending pattern and repayment pattern allows them to optimise who is a worthy customer to pay the loan back, I’m guessing even banks did not have so much data!

    Hopefully they will compete with the likes of loans provided by credit card issuing bank themselves (EMIs/Jumbo Loans) and end up eating their business probably! It’ll be good to see some competition

    Reply
    1. Naitik Mehta

      do this business have really that much proftability?i guess hardly they get interest margin of 5 to 8% per year.While business person gets mostly this margin per month.

      Reply
      1. Shivi

        8% per month~ 96% per year?! Which bank loan has been looting you at 5-8% per month?!

        Reply
    2. Ankit Malhotra

      Cred is not the one putting this money upfront, so they are not eating bank business here. This is being backed by a bank, so the business is theirs. The model is exactly the same as MoneyView or Walnut tying up with NBFCs to dispense loans. Cred is only providing a tech front and some advanced analytics on repayment patterns, some part of which will potentially be available to banks through their business tie up with Credit Bureaus. The only thing Cred knows on top of that is your category wise spending if you are giving email access to statements and they probably surreptitiously track SMS also for that. Walnut and MoneyView have already been in this data dense space with other lesser known ones vying for the pie. Sooner or later their is going to be big consolidation here and with the deepest pockets, Cred may just end up acquiring competitors for more customers and promoting its own app on to them.

      Reply
  6. sanemate

    Call Standard Chartered or Paisa Bazar. Paisabazar guy will get you in contact with the SC guys. They give personal loans at 11%, with documents like pay slip etc. 0% processing fee.

    Reply
    1. Kanwar

      And why would you wait to go for that hassle when you can get instant line of credit with CRED?

      Reply
      1. sanemate

        Cause Cred minimum rate as per this post is 11%. And minimum processing fee is 1%. (makes the min rate 12%+). And this is for only 5L.

        StanC, will deposit many times that amount, per your eligibility that is, at a cheaper rate, within 3 days. All online. So why not, unless you really need it instantly.

        Reply
    2. Rameez

      Even SBI doesn’t provide 11% personal loan to best of its customers. SBI raise money at 3-4% from customers.
      I doubt SC is providing 11% , 0 processing fee loa that too via paisa bazar…..there must be some catch.

      Reply
  7. Anilkumar G

    Hi , there are two credit scores in cred ( Experian and CRIF ). To avail cred stash does user need 750+ score in both bureaus or anyone is enough.

    Reply
    1. Rasheed

      For me both scores are below 750. i think that was the reason Cred stash is not showing up, but i m not sure of that.

      Reply
      1. Satish Patil

        I have >800 score in both but still i am not able to see the offer. I think they are rolling out slowly, you should be able to see it in few days.

        Reply
  8. Captain Bishuddha Bharatiya

    So far I cannot see any loan offer in our 3 CRED accounts. I also want to inform that CRED’s advertisement is live in national T.V.

    Reply

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