MoneyTap: India’s First App-Based Personal Line of Credit

Let’s be honest. Most or rather all of us have faced a situation where we needed money urgently. It may have been for a major purchase where we ran short of cash, bills that needed to be paid before our salary got credited, or even a medical emergency that came out of the blue. When something like this happens, our first instinct is to ask friends or family for a short-term loans or ask our boss for a salary advance.

But what do we do if no one can or will spare the funds we need? It’s uncomfortable enough to ask people for money, but even worse when they turn us down or we have to ask more than once!

Traditionally, the only other option available was to approach a bank for personal loans. These days, people also use credit cards to withdraw cash for short-term needs, but the high-interest rates make this quite expensive. What if there was a third option with the benefits of both?

Well, there are apps for loans in India, such as MoneyTap. This app provides an instant loan or ‘Personal Loan 2.0’ based on just a few details filled in through a smartphone. All you need to do is download the app, and you could be approved for a line of credit in no time at all.

How a Line of Credit Works

First off, let’s look at the concept of LOC or Line of Credit. According to the Farlex Financial Dictionary, it is:

A credit arrangement in which a financial institution agrees to lend money to a customer up to a specified limit. A line of credit, generally arranged before the funds are actually required, provides flexibility for the customer in that it ensures the ability to meet short-term cash needs as they arise. Also called bank line, credit line, revolver, revolving credit agreement.

Basically, it’s a lot like a credit card. You are given a credit limit, and you can choose when and how much to use at any time. Interest is only charged on whatever amount you use, not like personal loans where you pay interest on the full sum from day one, whether you use it or not. But, you don’t need to pay higher interest on cash withdrawals or make minimum monthly payments since you can choose the repayment term.

Features of the MoneyTap Loan App and Application Process

MoneyTap has partnered with banks to provide unsecured instant loans to consumers across India. The application process is hassle-free, and the app provides some very convenient features as well:

  • It’s the easiest way to get an instant loan online
  • The approval process is quick and hassle-free
  • You don’t need any collateral/ guarantors
  • Interest rates are quite affordable
  • The policy of ‘no usage, no interest’ is unique
  • You can use it as a cash loan or credit card
  • The credit limit is valid for your lifetime
  • Money is available 24/7 at your fingertips
  • Flexible EMIs and repayment options

Let’s talk about the application process. Rather than going through the long and tedious process with multiple visits to the bank, MoneyTap does the verification of eligibility, eKYC and other formalities through your smartphone. The process is divided into 3 easy sections:

  1. Profile Creation – Sign up and enter your name, age and personal details through an online form, with a helpful chatbot to guide you through each step. This took me less than 5 minutes to complete.
  2. Eligibility Check – If you’re between 23 and 55 years of age, earning a minimum monthly income of Rs. 25,000 as a salaried or self-employed professional, you are eligible to apply for a loan through the app.
  3. Loan Amount – If you meet all the eligibility criteria, the loan app will provide you with a maximum credit limit that you can use. This loan amount is a revolving credit, so it gets recharged with every repayment.

You need to provide your bank statements for the previous six months, but the app takes data security and privacy very seriously. MoneyTap currently serves 30+ cities across India, and we highly recommend the app if you’re looking for hassle-free loans!


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