MoneyTap Launches Credit Line App For Consumers
MoneyTap is a Bangalore-based fintech startup, founded by serial entrepreneurs Bala Parthasarathy, Anuj Kacker & Kunal Varma, who are IIT/ISB alumni. Bala has co-founded multiple startups in Silicon Valley including Snapfish (sold to Hewlett Packard), which he helped grow to 100M users and $300M in revenue.
MoneyTap is India’s first App-based credit line. It is targeted directly at consumers and given to them in partnership with banks. Credit line is a fairly new concept in India, which is an arrangement between a bank (or any financial institution) and a customer that establishes a maximum credit balance that the lender permits the borrower to access or maintain.
MoneyTap is a Bangalore-based fintech startup, founded by serial entrepreneurs Bala Parthasarathy, Anuj Kacker & Kunal Varma, who are IIT/ISB alumni. Bala has co-founded multiple startups in Silicon Valley including Snapfish (sold to Hewlett Packard), which he helped grow to 100M users and $300M in revenue. After moving to India in 2007, he volunteered for UIDAI under Mr. Nandan Nilekani before starting AngelPrime in 2011 (now Prime Ventures) where he helped create companies like ZipDial (sold to Twitter), EZETap, Happay, etc. Kunal & Anuj co-founded TapStart (formerly SkillWiz), a job discovery platform for consumers. Tapstart organically grew their user base to 300K users with 60K MAU. It turned profitable and the business exited in September 2015.
MoneyTap works in very close partnerships with various banks and other financial institutions to make the process painless and on-app and provide unique and compelling features such as:
•Credit Limit: Min credit Rs.3000, Max of Rs. 5 Lakhs Customers can draw as little as Rs. 3000 or as much as their approved limit
•No Usage, No Interest: Interest charged only on transfer or EMI conversion. The remaining limit is available to the customer, at no cost
•Low Interest: Interest rates vary from 1.25%-1.5% per month, no hidden charges.
•Setup Fee: One-time setup fee of Rs. 499 + tax, payable to the banking partner directly for blocking the credit-limit, only if approved. No charges or fee for downloading the App and checking eligibility.
•Decide your own EMIs: Customers can choose the tenure from 2 to 36 months
•Reputed Partners: Partnered with leading banks and financial institutions
•Rewards & benefits: MoneyTap credit card is loaded with rewards and other benefits
•No collateral, No guarantors, 100% unsecured
•Swipe. Tap. Convert: Customers can shop online or swipe at a store, one tap to transfer money to the account instantly, 24x7: They can covert card spends to EMIs
•Keep track of your transactions: EMIs and available credit can be tracked right from the app. Combines the best of a personal loan- cash and credit card, all under control through the mobile app
•Incorporated in: 2015; under stealth mode for nearly an year
•Founders: Bala Parthasarathy, Anuj Kacker, Kunal Varma
•Supporting OS: Android
•Availability: Delhi NCR, Mumbai, Bangalore, Chennai, Hyderabad
•Partner Bank announced: RBL Bank
•Funding: Funded by leading VC firms in India
MoneyTap’s founders are on a mission to solve the existing credit problem for Indian middle-income group. As the concept of consumerism spirals upwards in India, the young urban population is, and will continue to be, driven by aspirational living and the basic standard of living will increase drastically. This will drive consumers to opt for credit in order to cope with the ongoing trend. As a dichotomy, Indian consumers are also extremely credit starved; they are either denied or pay a heavy premium for accessing financial services due to sparse data, high transaction costs and poor trust infrastructure.
India is still a largely a cash-led economy, where credit card penetration remains painfully low. In a country with 1.25 billion people, 1 billion mobile phones, nearly 700 million bank accounts and a fast growing middle-income group population of 400 million, only 24.51 million credit cards are in use (according to recent RBI data). Unsecured personal loans offered by banks, a relatively slow-growing credit product stands at only Rs. 45,000 Cr. The informal market that includes moneylenders and family is roughly estimated to be 50-100 times bigger. Compared to the US or China, there should be 50 -100 million Indian consumers with easy access to credit.
Reasons for the gap
•Lack of reliable credit information for banks to be able to offer credit
•Credit cards, even when available, only solve the ‘shopping’ problem. Day-to-day needs such as school fees, emergency expenses (birth/ death), rental/bike deposits, sending money to family, etc. are still cash-based.
•Applying for a personal unsecured loan is onerous & time consuming for the consumer and expensive for the banks to process. Banks then prefer giving higher ticket loans to fewer people who qualify or give loans against gold/ assets, which most consumers are reluctant to pledge.
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