Cred launches 'Svalbard,' allowing users to pledge mutual funds for digital credit lines

Fintech firm Cred on February 25 unveiled Svalbard, a suite of experiences that includes helping consumers manage and improve their credit score.

It also enables Cred users to pledge their mutual fund investments to secure digital credit lines at interest rates starting at 8.99 percent, a move that is expected to expand the lending ambitions of the Bengaluru-based startup.

These experiences, which also includes an enhanced credit card management, are part of the company's push to make their offerings more personalised to India's affluent consumers.

"With Svalbard, we're transforming credit into a force for financial progress, in a country where most find debt stressful, we're recognising and rewarding responsible behaviour, turning credit from a source of anxiety into a growth accelerant" said Cred founder Kunal Shah.

A new feature Aurora turns credit scores from static numbers into animated scores through a new custom typeface and a ring of light called 'halo' that encourages progress and provides users gentle guidance during setbacks.

Cred will also provide consumers a credit health report card that includes payment history, credit usage, and account longevity among others.

Another feature, 'Foresight,' will enable consumers to forecast how specific financial decisions-from taking loans to missing payments -will impact individual credit scores. The predictive analytics tool analyses personal credit patterns to make this forecast, the company said.

Meanwhile, 'Compass' will allow users to set credit score goals and create personalised roadmaps to achieve them. The company said it analyses credit patterns to identify "high-impact" actions and provide time-based predictions to consumers.

Cred is also revamping its credit card management experience bringing an unified dashboard that consolidates statements from various credit cards into a single view.

It will also offer a real-time monitoring system that tracks credit utilisation and provide a holistic view of spending patterns across all cards.

The experience will feature a gesture based interface to make it easier for consumers to manage multiple cards.