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Nubank partners with Creditas for secured loans

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Two of Brazil’s largest fintechs are joining forces to improve access to digital lending options. Nubank will now offer its Brazilian customers access to secured loans, thanks to a partnership with Credits.

Nubank customers should be able to access Creditas lending products through its app by the end of the year, the Latin American neobank said in a statement. September 13 announcement previously reported by Reuters.

This partnership has the potential to deepen, as Nubank said in two years it could make the decision to own up to 7.7% of Creditas shares.

Creditas’ valuation rose to $1.75 billion in December 2020, following a $255 million Series E funding round led by LGT Lightstone. This followed a $231 million tower led by the Japanese group SoftBank Group Corp. in 2019.

Creditas secured loans allow its clients to use real estate, cars or even their salaries as collateral in the loan process, which aims to help them unlock lower interest rates. The company was founded by Sergio Furio in 2012 as a response to Brazil’s traditionally high lending rates.

Nubank already offers personal loans for its Brazilian customers who have a digital account and a credit card with the company, with variable interest rates depending on the month and the number of installments. The neobank estimates that more than 2.5 million people have used these loans, according to its website.

Nubank, which also develops services in Argentina, Colombia and Mexico, has been in growth mode for a few years to expand its financial offer. More recently, it bought the merchant-focused instant payment platform Payment per rotation.

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