MoneyTap, a Bangalore-based fintech startup, launched today India’s first App-Based Credit Line, in partnership with the RBL Bank, for providing salaried consumers instant credit from partner banks.
RBL’s technology enables MoneyTap to provide instant decision and instant access to money, 24/7. Though all actions are initiated on the MoneyTap app, per RBI guidelines, all financial transactions such as billing, repayment or withdrawals will directly be with the bank using secure APIs. 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.
Credit Line, a facility that was only available for businesses until now, is now being made available to consumers. 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 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.
The MoneyTap app is available on Android Playstore (http://bit.ly/moneytap) to all salaried employees, living in Delhi NCR, Mumbai, Bangalore, Hyderabad and Chennai. The company is planning to expand in other cities as well in the next few months. Qualified customers, after completing the KYC, will pay a one-time Line setup fee of Rs. 499 + tax in their first month bill from RBL Bank. This includes the cost of issuing the limit for the customer, a Free MoneyTap RBL MasterCard and a slew of other benefits. 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.