The millennial generation of today not only seeks loans for big-cheque properties like real estate, jewellery and vehicles, but they also tend to make smaller purchases including like gadgets, holiday packages, home decor on credit or EMI basis.
To facilitate this bracket of people, we now have MoneyTap, India’s first app-based credit line. It is targeted directly at consumers and given to them in partnership with banks and is founded by serial entrepreneurs Bala Parthasarathy, Anuj Kacker & Kunal Varma.
Credit Line, a facility that was only available for businesses until now, is now being made available to consumers. 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.
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
Speaking to Entrepreneur India, co-founder Anuj said credit is very poorly penetrated in India. “We went out and tried to understand why it is so poorly penetrated. Broadly we realized that the need for credit is still very high. Typically in this market when we think of taking a loan, for instance a home loan or a vehicle, but at times you need to take a loan for a smaller amount. Typically one does not always think of a bank to go and ask for smaller amounts thinking about how long and tedious the process can get...,” he added.
Elaborating on product building, Kunal said that they post their analysis of consumer behaviour had realized that people were very prone assistive technology. “We came up with a way wherein the product should be very intuitive, simple and fast. ...The app is built using an intelligent chat-based interface. You can download the app from Android Play Store for free and then you can do a chat-based interface...,” Kunal said, adding that the company had to take data privacy and security very seriously.
MoneyTap is launched in partnership with their banking partner, The RBL Bank. RBL’s technology enables MoneyTap to provide instant decision and instant access to money, 24/7, irrespective of holidays