MoneyTap, an app-based credit line on Tuesday announced a strategic partnership with Aditya Birla Finance Limited (ABFL), a subsidiary of Aditya Birla Capital Limited, allowing MoneyTap users to avail credit from the latter.
Targeted at the middle-income consumer segment in 20 cities across India, the new partnership enables ABFL to leverage MoneyTap's technology and data platform to evaluate and issue the credit to the customers and provide the best customer experience.
The partnership is in line with ABFL's commitment to providing easy financing to customers through digital channels. Currently, the company supports over 5000 daily online applications in the MSME and personal finance categories with an all-cloud hosted technology stack.
"Our partnership is aimed at ensuring hassle-free access to credit to address the growing needs of consumer credit. Given ABFL's rich expertise of SME underwriting and MoneyTap's innovative solution, this synergy allows us the opportunity to stay ahead of the industry curve while providing a world class experience to the customers," said Rakesh Singh, CEO - Aditya Birla Finance Limited.
Since its launch in September 2016, the app-based consumer credit line has attracted over one million users. The company also aims to offer Rs. 300 crores worth of credit by March 2018 and plans to partner with five other banks and NBFCs in the next six months.
To keep up with its rapid expansion plans, MoneyTap is increasing its employee count and plans to add 50 new team members in tech, data, product, marketing and ops in the next six months.
"The partnership serves as a good example of disrupting a traditional banking process and leveraging technology to make the experience significantly better for customers," said Bala Parthasarathy, CEO and Co-founder, MoneyTap.
On a related note, 'Credit Line' means that the customer will be issued a credit limit of up to Rs 5 lakhs, without any collateral or charging any interest.
The app also allows customers to decide their EMI plans and provides flexible payback periods ranging from two months to three years. The app also allows for the credit line to be replenished once all existent EMIs are paid back.
All financial transactions such as billing and repayment are directly dealt with the respective bank or NBFC, using secure APIs, thus ensuring 100 percent secure transactions.