Technology is reaching every aspect of life and making all the processes faster and easier. Before mobile banking apps and internet banking, one had to stand in long queues to make any kind of transactions. We can check status or even transfer money with just a single click. However when it comes to loan, it takes lot of time and effort. To solve this problem, a new fintech startup MoneyTap, launched India’s first App-Based Credit Line, in partnership with banks, and directly targeted to the consumers.
It was a Friday evening where all the tech bloggers came together and were introduced to this new age app MoneyTap in credit sector. The company was incorporated in 2015 and founders are Bala Parthasarathy, Anuj Kacker, Kunal Varma. “As of now the credit is available only to salaried employees but the vision is to make it available for even small business holders and freelancers”, answered Bala. When asked how many banks they are in partnership with currently, Bala replied “The App has been launched in partnership with RBL bank at present and they hope to bring in many other national banks under one roof”.
MoneyTap enables consumers to get instant credit from partnered bank at the tap of a button on the app. Credit Line, a facility that is not very new but it was only available for businesses until now. MoneyTap makes it available to consumers as well now. The “Credit Line” means that the bank will issue a limit of up to INR 5 lakhs, without any collateral or charging any interest. Against this limit, using the MoneyTap app, consumers can borrow as little as Rs. 3000 or as much as Rs. 5 lakhs and repay it as EMIs from 2 months to 3 years. The interest is paid only on the amount borrowed and the rates can be as low as 1.25% per month. The limit also gets automatically replenished as soon EMIs are paid back.
Though all actions are initiated on the MoneyTap app, are as per RBI guidelines, all financial transactions such as billing, repayment or withdrawals will directly be with the bank using secure APIs. As an added convenience for shopping needs, a “MoneyTap RBL Credit Card” is also provided for the user. This is a regular MasterCard Credit Card that is accepted at all locations and for all card purchases – offline and online.
Key Features – Pros:
- Credit Limit: Min credit Rs.3000, Max of Rs. 5 Lakhs. Customers can draw as little as Rs. 3000 or as much as their approved limit
- No Usage, No Interest: Interest charged only on transfer or EMI conversion amount and not on whole amount.
- Low Interest: Interest rates vary from 1.25%-1.5% per month, no hidden charges.
- Setup Fee: One-time setup fee of Rs. 499 + tax, payable to the banking partner directly for blocking the credit-limit, only if approved. No charges or fee for downloading the App and checking eligibility.
- Decide your own EMIs: Customers can choose the tenure from 2 to 36 months
- Rewards & benefits: MoneyTap credit card is loaded with rewards and other benefits
- Keep track of your transactions: EMIs and available credit can be tracked right from the app.
- Combines the best of a personal loan- cash and credit card, all under control through the mobile app
Improvements Needed – Cons:
- A functionality to provide credit for even self employed and small scale business holders.
- Personal chat or phone communication can be incorporated for the users to contact
Any salaried employee can download this free Android app and in a few minutes, using a patent-pending Chatbot interface, provide all the information typically required by banks. The app securely connects with the banking systems to give them not only an instant approval but also a credit limit, depending on individual credit history.
The MoneyTap app is available on Android Playstore to all salaried employees. Currently it is available for Delhi NCR, Mumbai, Bangalore, Hyderabad, and Chennai. The company is planning to expand in other cities as well in the next few months.
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