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Tags: credit loan bank
Mumbai-based Simpl allows users to make online purchases without immediate payment. It works on click-now-pay-later service that helps shoppers to buy from e-tailers, book movie tickets and even order food. The monthly limit for transactions on Simpl is Rs 5,000 and users can pay on the first and the fifteenth day of every month. No interest is charged to the users. 

Simpl has partnered with food apps Faasos and FreshMenu, movie ticketing portal BookMyShow, and has also partnered with 10 merchants. Earlier in 2016, Simpl raised seed funding from Green Visor Capital which is led by former Chief Executive of Visa.  

MoneyTap is a Bengaluru based start-up that offers app-based Credit line facility. Customers can borrow loans of up to Rs 5 lakh with variable tenure. The startup promises to process credit application in a matter of minutes. The loans can be repaid in equated monthly installments over a period of two months to three years. The rate of interests for loans vary from 1.25-1.5% per month. The app has a set-up fees of Rs 499-plus taxes to be paid to the bank. The limit also gets automatically replenished as soon EMIs are paid back. 

The app securely connects with the banking systems to give them not only an instant approval but also a credit limit, depending on individual credit history with real-time data from CIBIL. MoneyTap launched in partnership with their banking partner, The RBL Bank, and hopes to tie up with a few more banks and NBFC entities. The MoneyTap app is available to people living in Delhi NCR, Mumbai, Bangalore, Hyderabad and Chennai. The company is planning to expand in other cities as well in the next few months.

EarlySalary is a non-banking financial institution based out of Pune which doles out loans of up to Rs 1 lakh to salaried professionals. EarlySalary provides the loan amount to borrower on the basis of his activity on Facebook and LinkedIn. The NBFC has deployed an algorithm that takes into account about 4,000 data variables from the applicant’s social media profiles. By virtue of being an RBI-registered NBFC, EarlySalary loanees get a CIBIL score once they transact on the platform. A good credit score can then boost borrowers’ chances of getting other loans or a credit card. 

To avail of a short-term personal loan  one needs to register through the EarlySalary app through their social media account - Facebook or LinkedIn and answer a few questions. The PAN number and bank statements needs to be uploaded and within ten minutes the credit is underwritten digitally. With PAN and bank account details, the company would be able to access a person's credit history, which would help it determine whether to lend or not and fix one's credit limit. 

The startup has had a good deal of fund raising. In November last year, it raised $1.5 million, or about Rs 10 crore,  from Ashok Agarwal of Transcorp Group.  It generally gives loans of between Rs 10,000 and Rs 1,00,000 for a period of seven to 30 days, with prepay options, at interest rate of 24-30 per cent, lower than most credit card rates. EarlySalary targets youngsters in the 22-30 age group, who are in their first job and need small loans closer to the end of the month to see them through till the next payday. 

This post first appeared on MARKET WIRES, please read the originial post: here

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