India is the second-largest market for smartphones across the world. However, most people in the country still use their mobile devices only for basic tasks such as making calls, sending texts or emails, taking photographs, and using social media. The idea of digital payments, e-wallets, and Internet banking is catching on, though, at a fairly rapid pace.
The founders of MoneyTap have gone a step further, bringing an app-based credit line to smartphones in the country!
What is MoneyTap?
MoneyTap is India’s first app-based consumer credit line, founded by IIT/ISB alumni Kunal Verma, Bala Parthasarathy, and Anuj Kacker. Designed with the aim of providing millions of Indian consumers with hassle-free access to credit, the app offers instant loans in partnership with leading banks in the country.
Currently spread across 22 cities in India, the firm’s audience is largely composed of people from the seven major metros, Delhi-NCR, Hyderabad, Mumbai, Chennai, Pune, Ahmedabad and Bengaluru. Other towns and cities include Anand, Surat, Gandhinagar, Vadodara, Rajkot, Jaipur, Indore, Vijayawada, Coimbatore, Chandigarh, Mohali, Secunderabad, Panchkula and Vizag.
How is it different from personal loans and credit cards?
Unlike traditional personal loans and credit cards, MoneyTap offers users a personal credit line that they can use as desired. Upon approval, users can transfer funds into their account or use them directly for purchases with a credit card provided by the app.
What does MoneyTap offer?
Here are some of the main features and benefits of the app:
- A hassle-free instant loan, with no time, wasted on filing paperwork or waiting at the bank for procedures to be completed.
- Pre-approval within 15 minutes of registering, and a credit line of up to Rs. 5 lakhs available within a few minutes of approval.
- Flexibility to withdraw or use exactly as much money as you need, from as little as Rs. 3,000 all the way up to Rs. 5 lakhs.
- Interest charged only on the amount of money you use or withdraw, not the entire loan amount for which you’ve been approved.
- A MoneyTap credit card that allows you easy access to the funds in your account, which you can withdraw or use as needed.
- One-tap conversion of MoneyTap credit card spends into EMIs, with tenure ranging from 3 to 36 months based on your choice.
How much credit will MoneyTap offer?
MoneyTap is working to build a credit line worth Rs. 300 crore. Along with existing investors such as NEA and Prime Venture Partners, Sequoia India has recently announced plans to invest $12.3 million in the app. The founders of MoneyTap are planning to use these funds for R&D, enhancing data science abilities, as well as expansion.
How many people are using MoneyTap?
Within six months of its launch, the app has almost 3 lakh registered users. It has also seen close to 2.5 lakh installs on the Google Play Store. While not all users are approved for an instant loan, these numbers certainly point to a high level of consumer acceptance.
Does MoneyTap extend credit to every user?
The app uses smart algorithms to assess a user’s risk profile and is currently serving salaried individuals earning at least Rs. 20,000/month.
However, the founders have announced that credit lines will also be issued to self-employed professionals, a rapidly growing category that accounts for 5-10% of the company’s audience base. They also hope to expand their operations and start extending a credit line to consumers who earn Rs. 15,000 and above.
What lies ahead for the company?
With increased investment in the app, MoneyTap’s long-term goal is to go mass-market by improving its dynamic algorithm, R&D, and data science capabilities.
This will allow the app to perform better customer selections and open up access to other income brackets, as well as expand its audience base across the country. The founders hope to establish a presence in over 50 towns and cities in India, as well as tie up with 6 other banking partners and NBFCs by the end of this financial year.
MoneyTap takes pride in being completely transparent, without hidden charges or fees for users. Combined with the other benefits, this app is certainly one to watch in the coming months!