India’s first app-based credit line, MoneyTap crossed 1 lac app installs in three months since launch, possibly making it the fastest app-based lending start-up to achieve the feat. The company has also lowered minimum salary eligibility to INR 20,000 per month and made the service available to consumers living in shared accommodation.
MoneyTap has seen a huge demand from consumers in the lower-middle income group, since lowering the entry barrier late December 2016, with average salaries of around INR 22,000 per month and or living with their friends in shared housing.
“Credit Line” means that the bank will issue a limit of up to INR 5 lakhs, without any collateral or charging any interest. The credit limit could range from INR 25,000 to INR 5Lakhs depending on individual credit history. With a patent-pending chat interface, the free app rapidly evaluates the user’s credit in 7-minutes and tells them right then and there the amount they are eligible for. Against this limit, using the MoneyTap app, consumers can borrow as little as INR 3000 or as much as INR 5 lakhs and repay it as EMIs from 2 months to 3 years. Interest is paid only on the amount borrowed and rates can be as low as 1.25% per month. Credit limit also gets automatically topped up as soon as EMIs are paid back.
“We are humbled by the feedback we have received from our customers and are happy that we have been able to reach a large number of them. Since its inception, MoneyTap’s focus has been to enable easy access to small credit needs. The lower-middle income group in India is largely underserved by financial institutions. It is also a segment which is expanding and in need of credit. With the proliferation of smartphones in every nook & corner of the country, an expanding middle-income group and increasing ability to earn and spend, it will be interesting to see how access to a Credit Line will change their lives,” said Bala Parthasarathy, Co-founder, MoneyTap.