| Name of Complainant | |
| Date of Complaint | August 8, 2021 |
| Name(s) of companies complained against | Cred |
| Category of complaint | Internet Services |
| Permanent link of complaint | Right click to copy link |
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In May 2021, I decided to explore CRED stash to borrow a bridge loan of amount INR 2.5 lacs against the available limit of ₹4.8 lacs . The amount disbursed including all charges was ₹2.53 lacs .
I repaid this entire amount by July 10, 2021 .
When I checked my credit score I found that against the request for ₹2.53 lacs , CRED borrowed ₹7.33 lac from the underwriting bank IDFC first bank . They returned the ₹2.53 lacs to the bank after I closed the loan but defaulted on the remaining ₹5.07 lacs .
This had a severe impact on my credit rating .
Also this is fraud as I never asked for a loan of ₹7.33 lacs .
It appears CRED is borrowing money from banks using good credit scores of certain customers and then disbursing them to customers with a riskier credit profile thus arbitraging on the risk premium .
