In a world where financial needs often arise unexpectedly, personal loan apps like KreditBee have become convenient solutions for many. However, as with any financial service, it’s only natural to wonder whether such platforms are trustworthy and legitimate. In this comprehensive review for 2024, we delve into the critical aspects of the KreditBee personal loan app to answer a common question: Is KreditBee a scam or a legitimate option for securing a loan?
KreditBee is an Indian-owned and operated personal loan app. It is not of Chinese origin, as some similar apps have been in the past. KreditBee has its roots in India and serves the Indian market.
Kreditbee Personal Loan is Legal or Not
Established in 2018, KreditBee, a prominent player in the fintech arena, has been instrumental in providing professionals with personal loans and a range of financial services. This fintech platform has impressively disbursed loans exceeding $2 billion in the past three years, serving a vast clientele of over five million credit borrowers and facilitating more than 15,000 daily. To stimulate consumer spending and offer attractive deals to its customers, KreditBee recently introduced the KreditBee card, with an issuance rate of over 5,000 cards per day since its launch in late August. Furthermore, KreditBee is venturing into the Buy Now Pay Later (BNPL) space, integrating with various payment gateways and merchants.
Beyond lending, KreditBee is actively engaged in financial services, offering a SaaS platform that provides essential API services to numerous fintech companies and brands. To learn more about KreditBee’s endeavors, you can find additional details here.
To determine its legitimacy, it’s essential to consider the following factors:
Registered Entity: KreditBee is registered under the Indian Companies Act and operates as an NBFC (Non-Banking Financial Company).
Loan Documentation: Legitimate lenders require borrowers to complete formal documentation, which KreditBee does. This includes PAN card details, proof of residence, and income proof.
Interest Rates: KreditBee’s interest rates and fees are subject to regulatory guidelines set by the Reserve Bank of India (RBI).
KreditBee is a legally operating personal loan provider in India, subject to the country’s financial regulations.
Is Kreditbee approved by RBI?
RBI approval is crucial for the operation of any financial institution in India. KreditBee, as an NBFC, requires RBI authorization, which it possesses. RBI’s supervision ensures that KreditBee complies with necessary financial regulations.
Also read – Lowest Interest Rate Loan Apps
KreditBee Personal Loan: Consequences of Non-Payment
While KreditBee can provide quick financial solutions, knowing what can happen if you cannot repay the borrowed amount on time is equally important. This guide will outline the potential repercussions of defaulting on a KreditBee personal loan, helping you make informed decisions and manage your financial commitments wisely. Defaulting on a KreditBee personal loan can have serious consequences:
Penalties: Non-payment may result in late payment penalties and additional interest charges, which can significantly increase the loan amount.
Credit Score Impact: Defaulting can adversely affect your credit score, making it harder to obtain credit in the future.
Legal Action: KreditBee, like any legal lender, may take legal action to recover the unpaid amount.
To avoid these consequences, it’s crucial to repay your KreditBee loan on time.
TechCrunch Covered KreditBee Valuation
Indian fintech firm KreditBee has secured an additional $100 million in funding to bolster its expansion efforts in the South Asian market. This funding is part of the larger Series D round, now totaling $200 million. Advent International spearheaded this investment, reportedly propelling the Bengaluru-based startup to a valuation of approximately $680 million.
With backing from notable investors like Mirae Asset Venture Investments, Premji Invest, and Mitsubishi UFJ Financial Group, KreditBee is focused on offering microloans starting from $12 to individuals new to credit, along with extending credit lines of over $3,500 to salaried professionals. Their overarching mission is to cater to the substantial demographic of 400 million new-to-credit customers in India.
Case Study on KreditBee By Amazon
You can read this detailed case study by Amazon to understand more about Kreditbee loan reviews. https://aws.amazon.com/solutions/case-studies/kreditbee/
KreditBee Personal Loan – User Reviews
To understand the user experience with KreditBee, it’s essential to consider reviews from existing customers. Online reviews can provide insights into the app’s efficiency, customer service, and overall experience. Review reviews vary, so it’s wise to read multiple sources to form a balanced opinion.
KreditBee is not a scam. It’s an NBFC like any other, for ex- Hero Fincorp, Incred Finance, Fullerton India, Finnable, Paysense and Faircent etc.
The issue is most of these apps provide unsecured loans very easily, but they charge heavy interest. It is because of the risk factor cost of their working capital.
A person with low income or bad credit can be funded by these Apps. The problem arises when any EMI is bounced; they charge a penalty as all banks do, but a person with already low income who already bounced the EMI payment (due to insufficient funds in most cases) will have to bear the charges. Then they start complaining that it is a scam, they are charging unnecessarily, etc,
Coming back to higher rates because of costly working capital. Banks get their capital from public deposits, and the interest rate is not more than 7% in the bank for any investment. In the case of NBFCs, they arrange their capital by taking loans from banks, which costs 8%–11% based on the terms and conditions. So, these Apps or NBFCs can not compete with a bank in ROI. This is why they target those who are not eligible to take a loan from a bank.
You can read Kreditbee Reviews in detail by clicking on the link.
In conclusion
KreditBee is a legitimate personal loan app in India, duly authorized by the RBI, and operates within the legal framework of the country. However, as with any financial commitment, it’s essential to understand the terms and consequences before taking a loan and make timely payments to avoid penalties and credit score damage. Reading user reviews can also provide valuable insights into the user experience with the app.
To make an informed decision about using KreditBee or any similar service, it is crucial to thoroughly research and consider customer reviews, terms and conditions, and platform transparency.
It is essential to exercise caution and due diligence when exploring online lending options, as the digital lending landscape can be filled with trustworthy providers and potential scams. Ultimately, the determination of whether KreditBee is a scam or a legitimate option should be based on a careful evaluation of your specific financial needs, risk tolerance, and an understanding of the terms and conditions associated with their services.