In a first, Bengaluru-based startup MoneyTap has launched India's first app-based "Credit Line", enabling consumers to get instant credit from partner banks at the tap of a button.
The "Credit Line" means that the bank will issue a limit of up to Rs 5 lakh without any interest. Against this limit, using the MoneyTap app, consumers can borrow as little as Rs 3,000 or as much as Rs 5 lakh and repay it as EMIs from two months to three years.
The interest is paid only on the amount borrowed and the rates can be as low as 1.25 per cent per month.
"The 'credit line' for consumers with accessibility through an app is a new concept in India and we are excited about the opportunities it can bring to thousands of millions of Indians," Bala Parthasarathy, CEO and Co-founder of MoneyTap, said in a statement.
The app, which can be downloaded from Android Playstore, connects with the banking systems for an instant approval and also a credit limit, depending on individual credit history.
MoneyTap has been launched in partnership with The RBL Bank and is available for all salaried employees, living in Delhi-NCR, Mumbai, Bangalore, Hyderabad and Chennai.