CRED, a fintech platform, has introduced Svalbard, a suite of credit management tools aimed at helping its members improve credit scores, manage multiple cards, access secured credit without liquidating investments and to avoid hidden charges.
Kunal Shah, Founder of CRED, said, “Svalbard is about making responsible credit behaviour easy. Before you take a loan or miss a payment, you’ll know what happens to your credit score.’‘
Svalbard, comes with a predictive credit score tool that also provides personalised risk assessments based on a user’s past credit history in addition to other credit card management features, and an option for instant loans against mutual funds at 8.99% interest.
While 97% of credit card holders have EMIs/loans and 63% hold mutual funds, only 1.5% of India’s ₹33 lakh crore retail mutual fund AUM is pledged for secured credit, he said.
Another component Compass functioned as a personalised credit improvement roadmap, analysing users’ spending habits and offering suggestions to boost customers’ scores.
According to CRED, some 52% of credit cardholders missed payment because 50% face timing issues with fund availability. 48% are overwhelmed by busy schedules, 44% lost track of due dates and 43% misunderstood payment terms. The credit has a psychological toll as 79% of customers experience debt-related stress. 45% struggle with multiple commitments and 39% find expense tracking challenging.
“Last year, CRED detected hidden charges and late fees to the tune of ₹ 11,000 crore, levied to its customers,” he noted.
Through Svalbard, CRED’s aim was to turn responsibility into opportunity, credit anxiety into confidence and confusion into clarity.
In partnership with RBI and other government agencies, CRED Foundation, a non-profit arm, would focus on financial literacy and fraud detection and prevention, Mr. Shah added.
Published – February 26, 2025 10:59 am IST
