Two of Brazil’s most important fintechs are collaborating to increase access to digital lending options. Thanks to a collaboration with Creditas, Nubank will now be able to offer secured loans to its Brazilian customers.
Customers of Nubank should be able to access Creditas loan products via its app by the end of the year, according to a Sept. 13 announcement previously reported by Reuters.
That collaboration has the potential to deepen, as Nubank has stated that in two years it may decide to hold up to 7.7 percent of Creditas’ shares.
Following a $255 million Series E funding round led by LGT Lightstone, Creditas’ valuation increased to $1.75 billion in December 2020. This comes on the heels of a $231 million round led by Japan’s SoftBank Group Corp. in 2019.
Creditas secured loans allow customers to use real estate, cars, or even their salaries as collateral in the lending process, allowing them to access lower interest rates. Sergio Furio founded the company in 2012 in response to Brazil’s historically high lending rates.
Personal loans are already available to Nubank’s Brazilian customers who have a digital account and credit card with the company, with interest rates varying depending on the month and number of installments. According to the neobank’s website, more than 2.5 million people have used these loans.
Nubank, which is also expanding its services in Argentina, Colombia, and Mexico, has been expanding its financial offerings in recent years. It most recently acquired Spin Pay, a merchant-focused instant payment platform.