NEW DELHI : Freo, India’s first credit neobank, has partnered with Equitas Small Finance Bank to launch a zero-balance savings account that will offer an interest rate of 7% on a minimum balance of ??1 lakh.
According to the neobank, the new product, Freo Save, will enable customers to make informed financial decisions and strengthen their credit profile in the process.
Along with features like zero balance and 7% interest rate, the savings account will allow seamless integration with UPI to facilitate fund transfers and bill payments.
Commenting on the launch, Anuj Kacker, co-founder of Freo, said, “People have the power to analyze their spending habits and take small steps that can help them build and strengthen their credit score with just some help. All of our features are designed to achieve this goal and give users the freedom to spend without fear and give them the added convenience of meeting all their aspirations. “
To gain access to credit, users must now maintain a good credit rating, which is a metric that reflects their financial credibility and likelihood of default. The only way to build a credit history is to get a credit card or a loan. These have very different eligibility criteria and not everyone qualifies for these options.
According to the company, Freo Save was designed to help individuals achieve better credit scores.
According to Vaibhav Joshi, Chief Digital Officer, Equitas Small Finance Bank, the partnership with Freo will help elevate the future of financial services by reaching out to and empowering young people, families and business people across India. discover a new way to access banking through application-based banking solutions.
So far, as part of its MoneyTap service, Freo has disbursed loans of over ??4,400 crore to its users. MoneyTap offers a line of credit of up to ??5 lakh. Its services include Freo Pay, which offers a buy-now and pay-after function.
To make banking operations more convenient and meaningful, financial technology (fintech) startups are launching neobanks. These players are partnering with traditional banks and delivering better solutions using technologies such as artificial intelligence (AI) and machine learning (ML).
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