Till date, Consumers in India had very few options to get a credit for themselves for their day-to-day needs. These options include credit cards or getting small personal loans. Both have their own advantages and pitfalls, yet doesn’t fit for every situation. Both these options doesn’t match the flexibility of a dedicated Credit line which usually is available for businesses and not the consumers.
MoneyTap is a Bangalore-based fintech startup, is trying to fill that gap for consumers. They have launched a smartphone app in partnership with banks that enables consumers to get instant credit from partner banks at the tap of a button on the app. The whole process of getting the credit takes 10-20 minutes and is quite simple compared to a normal loan or credit card application. The Aadhar card (Issued by Indian Govt.) can be used to speed up the process and it fills up all the data from the Aadhar database. You can edit the information if needed. You need to submit information like your financial details, salary slips etc before the approved credit from the partner bank gets available to you through the app. The app uses a chat like interface to help you fill up.
With this “Credit Line” Moneytap in association with their partner banks can issue a limit of up to INR 5 lakhs, without any collateral or charging any interest based on your credentials. Against this limit, consumers can borrow as little as Rs. 3000 or all the Rs. 5 lakhs and repay it as EMIs from 2 months to 3 years as per consumer needs. The best part is, the interest is paid only on the amount borrowed from the available credit line and the interest rates can be as low as 1.25% per month. The limit also gets automatically replenished as soon EMIs are paid back. The money can be transferred to your bank account in any other bank for your use.
The MoneyTap app is available on Google Playstore for all salaried employees (they plan to extend this to others later on) living in Delhi NCR, Mumbai, Bangalore, Hyderabad and Chennai. It come with a small initial cost though, If you get approved for credit after completing the KYC, one-time setup fee of Rs. 499 + tax is charged.