MoneyTap, along with its partner RBL Bank, today announced that their credit line is now available for self-employed professionals. The opening of the new segment is in line with the company’s plans to expand into 30 cities in India over the next six months. After lowering the minimum salary eligibility to Rs 20,000 per month, this is MoneyTap’s next move to enable easy access to credit.
In a country of 1.2 billion Indians, 26.4 million have credit cards as of August 2016, according to RBI data. The penetration of unsecured personal loans has been extremely poor in India with the organized credit presence at around 1% in the country. On the other hand, according to a survey done by the TransUnion Cibil, a credit information firm, Indian credit card customers have improved their payment behavior with about 78% of them paying off monthly bills completely and about 92% of credit card holders often pay a greater amount than the minimum due. Thus, there is enough scope for a product like MoneyTap to thrive and scale.
MoneyTap’s app-based credit line provides a customer with a credit limit, anywhere from Rs 25,000 to Rs 5 lakh, without any collateral. The value of the credit limit depends on the individual’s profile and the credit policy being used. With a patent-pending chat interface, the free app rapidly evaluates the user’s credit eligibility in just a few minutes and instantly informs them of the decision, along with the amount they are eligible for.
Using the MoneyTap app, consumers can choose to borrow as little as Rs 3000 or as much as R 5 lakh, or up to their upper credit limit. They also get to decide their own EMI plans with payback periods ranging 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. If the user does not borrow any amount, then no interest needs to be paid. The credit limit also gets topped up once EMIs are paid back.
MoneyTap along with RBL Bank is able to provide its customers instant decisions and instant access to money, 24/7, irrespective of holidays. Moreover, as per RBI guidelines, all financial transactions such as billing, repayment or withdrawals are directly dealt with the bank but through the MoneyTap App using secure APIs, thus ensuring 100% secure transactions. Consumers do not have to hold a bank account or any other account with the partner bank to avail MoneyTap. As an added convenience for shopping needs, a “MoneyTap RBL Credit Card” is also provided to the user. This is a regular MasterCard Credit Card that is accepted at all locations and for all card purchases – offline and online.
The MoneyTap app is available on Android Playstore to all salaried employees and now self-employed. Qualified customers, after completing the KYC (right from the app with no paperwork involved), will pay a one-time line setup fee plus tax in their first month e-settlement. There are no hidden fees or charges and every time the customer chooses to take an EMI, they will be shown the interest & any other applicable charges and the customer will be required to provide explicit consent before borrowing.