It introduced the concept of a Personal Line of Credit/Credit Line for the first time in India when it launched in September 2016.
Mobility India spoke to Mr. Anuj Kacker Co- Founder of MoneyTap to know more about India’s first app-based consumer credit-line which is a very new concept in India.
Would you brief us on what MoneyTap is all about? How it works, and how it all started? Who need MoneyTap and how MoneyTap helps them ?
The story behind MoneyTap is rooted in how an average Indian leads his/her life. Growing up in India, especially in middle-income group families, we all face a shortage of additional funds at some point. For us, the idea was essentially a combination of personal experiences and general observations. We realized that the majority of Indians (especially salaried class) faced several challenges when it came to getting credit, more so for smaller amounts.
Our data-backed research reflected that people are not comfortable going to banks for loans for minimal amounts – this could range anywhere from Rs. 3000- Rs. 50,000 to 1- 2 Lakhs. On the other hand, asking for money from family and friends always has an embarrassment factor. Thus, for even the simplest of credit needs such as medical, birth, death, school fees, deposit to take a rent on house etc., people are put under high scrutiny. This is where we thought that an innovative, people-friendly credit product like MoneyTap would be a friend one could reach out to in times of need & instantly get help.
So, at MoneyTap, we are on a mission to change the landscape of lending business and make credit accessible to those who deserve it. The ubiquitous presence of smartphones and initiatives such as Aadhaar has made it possible for us to develop a truly powerful and disruptive financial instrument. The credit line for consumers with accessibility through an app is a new concept in India and we are excited about the opportunities it can bring to thousands of millions of Indians. MoneyTap is like a friend who gives you money when in need, be it marriage, birth sudden death in the family, school fees, hospital bills or sudden cash crunch during the month end. We, at MoneyTap, want to make credit available for deserving and eligible candidates.
MoneyTap introduced the concept of a Personal Line of Credit/Credit Line for the first time in India when it launched in September 2016. 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 topped up as soon as EMIs are paid back. Any salaried employee can use 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. 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.
Is your app safe? How it won’t affect your user’s CIBIL score in negative way?
Yes, MoneyTap app is absolutely safe. All sensitive information shared by the user is encrypted. We do not share the applicant’s information with any marketing agencies or tele-callers. We take data privacy very seriously. We follow standard Android guidelines of security, privacy and information sharing. Also, since we work with a bank partner, we comply with banking norms of customer privacy and data security. Our IT systems are checked and approved by the IT and Data Security teams of our partner banks. Customers give consent before they share any information with us and we use that information to deliver a valuable service to our customers.
A good credit score is one of the important criteria for you to get Credit Cards/Home/Car/2-wheeler in the future. Once you start using MoneyTap and take out cash or EMIs and make timely monthly payments, you start building your credit history. In fact, taking credit and repaying them is the single most important way to improve your credit score.
However, if you default or delay your monthly payments, your credit score will be impacted.
How many banks right now is associated with you, any plans to increase that number?
RBL is one of the banks we are associated with, they are our launch partner. There are several other partner banks we’re working with but we’ve not yet announced them.
Your goals for 2017?
We are currently present in 14 cities in India and will be very soon in 30 cities. We are already catering to the salaried segment with earnings above Rs. 20,000 per month, our goal is to include the people earning between Rs 20,000-Rs 15,000 and eventually reach out to the ones earning Rs 15,000 – Rs 10,000 as well. We also plan to launch the app in regional languages and open a new segment i.e. the self- employed segment.