It would not be wrong to say that currently, fintech startups are changing the way we carry transactions in traditional banks. Fintech industry is rapidly growing, with young startups taking birth. Interestingly, there is one startup, which can be an answer to all your prays for availing personal loan. Notably, to avail personal loan, one pass through the eligibility criteria set by banks. These criteria are credit score, salary every month, credit history, age and capability to repay the debt. But in a Bangalore-based Fintech startup MoneyTap you can avail personal loan up to Rs 5 lakh in just 4 minutes. Shocking but quite true.
Bala Parthasarathy CEO & Co-Founder, MoneyTap in an interview with Zee Business Online says, “Collateral-free loans are arguably the best option for borrowers to avail credit without the fear of losing their assets. They are quick, flexible and ideal for short-term cash requirements. With more and more fintech companies coming to the fore debt financing has become easier and more accessible for the common people.”
Explaining how MoneyTap is different from other lender, Bala says, “Upon its launch in September 2016, MoneyTap introduced the concept of a personal line of credit for consumers in India.”
“Using the MoneyTap Credit Line, consumers can borrow up to Rs. 5 Lakh within 4 minutes on the app. This facility is a boon to salaried employees and self-employed professionals who may need to borrow only a menial sum and return it as per their convenience in EMIs of 2 months to 3 years,” Bala adds.
But what distinguishes MoneyTap is its, lowest interest levied on personal loan, making EMIs cheaper and debt-burden free.
The MoneyTap CEO explains that, it allows customers to borrow as low as Rs. 3,000. Also, with the issue limit being Rs. 5 Lakh, the borrowers only need to pay interest for the amount borrowed, not on the entire limit. And depending on their credit profile, the interest rates can be as low as 1.08% per month (13% pa).
The best part as per Bala is that, credit limit gets automatically replenished as soon as the EMIs are paid back.
According to this fintech, digital personal loans and paperless transactions are the future of banking, augmented further by the latest cutting-edge technologies and a relaxed regulatory environment.
Currently, banks like SBI, HDFC Bank, ICICI Bank, Axis Bank, Kotak Bank, Oriental Bank of Commerce, BoB, PNB and many more, charge personal loan interest rate ranging from 12% to over 24%.