We want to tap salaried middle class: Anuj Kacker

MoneyTap, an app for credit line to salaried customers, is the second entrepreneurial venture of Anuj Kacker. It is being funded by Prime Venture Partners. He tells Praveena Sharma that his app gives access to credit to middle class customers, at the click of a button at nominal cost.

How does MoneyTap work?

It’s an app for credit line for salaried customers, not for businesses.

It is India’s first app-based credit line. The concept of a credit line or a personal line of credit exists in business but if somebody wants an Over Draft (OD) facility, a customer like you and me, we can’t get it.

MoneyTap makes it very easy for individual customers to get a credit line.

How different is it from peer-to-peer lending or a mobile wallet?

With this app, the personal line of credit is available to you at the touch of a button. It’s brings together the benefits of personal loans and credit line. Wallet is money that you take from banks and then you spend via it. Here, we are getting credit line for you from a bank and you do not pay any interest on it till you utilise it. The credit can be lying in your account for over a year but nothing will be charged to you till you spend it. Peer to peer apps are platform for borrowing and lending.

Who are you partnering with for capital to provide credit line to customers?

RBL is our launch partner. We have worked with them for providing regulatory oversight and risk behaviour. There is a ten minute process of applying for the credit line, which typically takes three days to three weeks in a bank.

We literally spent eight to nine months building this product because there is very heavy-duty tech work required for integration with the banks. We have done the integration with banks and Aadhar to get your CIBIL score. All that happens in real time. And because we are partnering with the banks, we can check on the bank’s policy on what will get a person approval and what will not. Even the know your customer (KYC) step is done on the app, where the bank guy comes to your address to take your signature because RBI mandates that a signature has to be taken. After that, in one to three days, the money will be available on your app.

Which banks or partners have you tied up with?

We are talking to banks, hospitals and others for a partnership. We are in talks with practically all the banks for it. We want to reach 10 lakh customers in three years so, we will be needing huge volume of capital which will be met by banks. Our target is the salary group of 3,500 lakh middle class.

Are you not in any way cannibalising the credit line business of the banks? Why will they partner with you instead of coming out with their own product?
Our app will help them get more customers.

What is the interest rate charged on credit line utilised?

It is 1.25-1.5%, and the tenure can range between two days to 36 months.

How have you funded this venture?

In 2013, I started this venture with my partners, with angel funding. We have also raised funds from Prime Venture Partners.