#5 E-money Lenders that are Altering the Lending Business in India Online loan providers have eased the lives and young Indians are enjoying its benefits
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Traditional money lending or loans was restricted to banks and informal organizations and individuals. These informal bodies or individuals have had always charged higher interest rates than an officially registered money lender and this has always taken tolls on the individuals availing the loans.
Digitization of money lending platforms and the government defined financial regulations have smoothened such creases in the credit market. The scenario has been shifting towards a better space where more number of available market operators are climbing in the market and applying for loans, getting them sanctioned and then repaying them penny by penny has become easier. Along with the surge that we have been seeing in the money lending space, recent reports still reflect that there is still a big slice of individuals in the market who are availing the traditional modes. But the operations of the various new and existing fintech hands is creating more awareness about money lending, building the trust factor and attracting customers in the country with offerings like instant money transfer, no cost EMIs and more.
Here are some of the digital lenders who are trying to ease the lending hassles in various segments with their apps:
Average Rating on App Store: 4.3
MoneyTap, an app-based credit line that claims to be the first of its kind, is not just a personal loan or a credit card, but a personal credit line that offers instant online credit. Kunal Verma, Bala Parthasarathy and Anuj Kacker were the ones to first lay the brick of foundation of the company in October 2015. Apart from operating in its home ground in Bangalore, MoneyTap is striving to make credit accessible to millions of Indians without much hassle in other Tier 1 cities like Delhi NCR, Mumbai, Hyderabad and Chennai.
The app-based credit line has already bagged more than five million downloads and is operating in the space in hands with a few banks, offering loans ranging from INR 35K to INR 5 lakhs.
Average Rating on App Store: 4.0
PaySense's entrance in the lending space happened in 2015 when its founders Prashanth Ranganathan and Sayli Karanjkar built the fintech startup in Mumbai. The digital money lender offers microloans for short duration that goes up to INR 2 lakhs and has more than 1 million downloads on its shelf.
Average Rating on App Store: 4.1
The instant personal loan provider, LazyPay offers loans to its customers that go up to a maximum of INR 1 lakh. A part of PayU, the LazyPay app has more than one million downloads since its inception in 2017.
The credit provider assists its customer in making purchases of their choice with EMIs or Pay Later options with more than 100 merchants.
Average Rating on App Store: 4.5
The instant loan provider mPokket has attracted customers with their unique concept of offering loans to college students with the intonation of "Pocket money… Anytime… Anywhere".
With mPokket, young users can forget the hassles of pocket money that college students have had always been facing. It offers a loan as small as INR 500 and its average loan size is INR 1,000. Considering the audience it is reaching out to, its interest rate is as minimum as 2-3per cent per month that is 24-36per cent per annum.
Average Rating on App Store: 4.5Another instant personal loan platform, KredtBee is designed for young professionals where they can get microloans, Salary Advance, cash, online and instant loans up to INR 1 lakh. The Bangalore based fintech startup by Madhusudan E has already fetched five million downloads since its inception in 2018.