Fintech platform LoanTap wants to ease the financial woes of salaried professionals with its flexible loan products. Headquartered in Mumbai and operational in Pune as well, LoanTap was launched in 2016 by ex-banking professional Satyam Kumar and former tech professional Vikas Kumar. The start-up offers unique products like personal overdraft, EMI free loans, credit card takeovers, advance salary, etc. The idea is to use technology for building flexibility in products, without adding cost to it.
“Our end-to-end offerings have received a very positive customer response from day one,” says Satyam Kumar, co-founder, LoanTap. The biggest USPs of the platform have been its benchmark turnaround time that, as of now, averages at about 36 hours as well as its highly personalised customer-centric approach.
LoanTap has been a pioneer of multiple innovative fintech offerings that include EMI-free loans, rental deposits, wedding loans, holiday loans, salary advance, and personal overdrafts. “Our EMI-free loans offer our customers an unmatched flexibility in repaying the loan amount,” says Kumar. “The interest is paid on a monthly basis whereas the loan principal repayment is staggered based on customers’ monthly cash flows. Salary advance, on the other hand, enables our customers to bear with rainy days or to meet urgent expenditures by availing their salary component 10-20 days ahead of their usual payday.”
As market awareness is increasing with regard to LoanTap’s offerings, the start-up is experiencing a cumulative growth of incoming loan applications from its target markets. “These upward trending loan applications are projected to result in a three-fold increase of our platform’s book size this year, taking it from the present level of Rs 65 crore to Rs 200 crore by the end of year. This places our month-over-month growth in terms of book size at about 20% throughout 2018. Considering that we are able to experience such a superlative growth even after two years of operations, and despite our limited target geographies, it indicates the potential of our credit disbursement platform,” he informs. LoanTap also features a good credit quality and has reported less than 0.38% bad loans.
Says Kumar, “Our market research pointed out that a majority of barriers to credit penetration could be easily countered by leveraging an array of digital technologies and non-conventional data repositories, especially vis-à-vis salaried professionals. The research also revealed many flaws in credit assessment, which in many cases extended credit to undeserving candidates and added to bad loans, while it simultaneously prevented creditworthy applicants from availing the loans.”
LoanTap, since inception, has operated on a lean financial model despite constantly enhancing its service presence and credit penetration. It also does away with partner NBFC-driven approach and delivers credit via its in-house NBFC in order to increase efficiency and customer experience. “We currently have a mix of equity and debt investments by Kae Capital, India Quotient, IFMR, MAS Finance, and Muthoot Group in addition to our HNI investors,” says Kumar. “We will continue to bring new products to the market. We are currently working on three products to be introduced in Q1 of new financial year. One of these will address a core need in SME sector and will also herald our entry into that segment.”